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Navigating the New Landscape: Changes to the UK Social Value Model

3 min read
By Karan Peer

The UK Social Value Model has undergone significant changes, reflecting a growing emphasis on social sustainability and community impact. These changes are not just bureaucratic adjustments; they represent a fundamental shift in how public procurement approaches, aiming to embed social value at the heart of decision-making processes.

One of the key updates is the introduction of more comprehensive guidelines for evaluating social value in tenders. This includes a stronger focus on supporting local communities and promoting sustainable practices. The new model encourages public sector organizations to consider the broader impact of their procurement decisions, beyond just economic factors.

There is a need for businesses to proactively align their strategies with the new requirements to stay competitive in the public procurement landscape. The role of collaboration between government and businesses is going to be key in driving social value. There is necessity for more government collaboration and policy support to ensure the successful implementation of the Social Value Model. The argument is made that without adequate government backing, the potential benefits of the model may not be fully realized.

Organizations will have a transition period to apply the new model, starting 24 February 2025. Its use will be mandatory from 1 October 2025.

  • Suppliers can refine the social value model question, Social Value Award Criteria, and Sub-Criteria to suit market conditions and their specific contract.
  • Suppliers may omit some sub-criteria if they are not proportionate to the contract.
  • Suppliers/Bidders can insert Additional Award Criteria.
  • Reporting metrics are now more granular, applying to each sub-criteria.
  • The COVID recovery theme and the policy outcome for increasing supply chain resilience using Cyber security training certification have been removed.
  • The resilience outcome for SMEs/VCSEs and Startups now focuses on direct funding/support, with linked reporting metrics.
  • Living wage and minimum wage reporting is now required under Model award criteria (MAC) 1c.
  • In-work progression now has specific reporting metrics on staff person-hours spent.
  • The reporting metric for green spaces now includes the size in m².
  • There is a new social value outcome of reducing crime, with a MAC and reporting metric on reducing domestic abuse (5a).
  • There is a separate outcome on creating employment for those facing barriers, with a focus on people with disabilities.
  • The outcome on worker health and well-being includes mental health and lifestyle disorders.

These changes are encapsulated in the Public Procurement Note (PPN) 02/25, which provides detailed guidance on implementing the revised Social Value Model.

These changes present both challenges and opportunities for businesses. On one hand, there is a need to adapt to new evaluation criteria and reporting requirements. On the other hand, businesses that effectively integrate social value into their operations can gain a competitive edge and contribute to positive societal outcomes.

In conclusion, the changes to the UK Social Value Model mark a significant step towards more socially responsible public procurement. By embracing these changes, businesses can not only enhance their chances of winning public contracts but also play a crucial role in building a more sustainable and equitable society.

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