Sector bodies have responded to the government’s plans to change how social value weighting is applied to public procurement.
Until now, public contracts assigned a 10% weighting to social value, meaning bidders’ social, economic and environmental commitments were given at least this much consideration.
The Cabinet Office this week revealed plans to remove the social value weighting from all contracts under £1m while increasing the score to 20% for tenders £5m or more.
A spokesperson for the department told Civil Society that removing the model from contracts below £1m would make it easier for smaller organisations to apply.
“Often, smaller organisations, such as civil society groups, may not have the resource to provide all the information that was necessary under the previous social value model to apply successfully for contracts,” they said.
In its announcement, the Cabinet Office said the changes will apply to central government procurements from 1 January 2027, with detailed technical guidance to be published in the autumn of this year.
It also said bidders who create local jobs that pay above the legal minimum, treat employees properly and help plug local skills gaps would get extra credit.
Suppliers will be assessed on their commitment to backing British jobs, skills and opportunities and targeting support for young people not in education, employment or training, care leavers and people with long-term health issues.
To ensure companies honour their pledges for major contracts, the government said its departments would allocate a key performance indicator and make annual progress reports available publicly.
Sector engagement welcomed
Membership body NCVO welcomed the government’s ambition to create more opportunities for people and strengthen communities.
Jo Reilly, associate director of policy, public affairs and research at NCVO, told Civil Society: “We're pleased to see the Cabinet Office engaging proactively with civil society on public procurement reforms.
“Social value is inherent to civil society’s purpose because we exist to deliver public benefit and create positive change in communities.
“The value we create is broad and includes supporting those furthest from the labour market into work, such as employment support, volunteering and trusted relationships with those experiencing barriers.”
Reilly said the success of the reforms will depend on implementation, with businesses needing “the right incentives and support to deliver social value in partnership with civil society”.
“Civil society organisations delivering public services need sufficient funding to enable good employment practices and sustainable delivery,” she said.
“If these changes encourage genuine collaboration, they can help ensure public spending delivers stronger communities alongside better public services.”
Wider change urged
NAVCA, which represents local infrastructure organisations, welcomed the government’s intentions but called for social value requirements to be applied more broadly.
Chief executive Maddy Desforges said simplifying social value outcomes within procurement could benefit voluntary, community and social enterprises (VCSEs), “which already create significant social value by employing local people”.
However, she said that for these changes to have real impact, they must apply to local authorities and health systems as well as central government.
“These are the public bodies that commission the vast majority of services from the VCSE sector, and simply suggesting they ‘may wish to adopt these approaches’ doesn’t go far enough,” she told Civil Society.
“If government is serious about recognising the value the VCSE sector brings, this must be accompanied by a wider culture change across the whole public sector, recognising the vast contribution of charities and community groups across the country.”
