News

The UK Government has published Procurement Policy Note (PPN) 026: The Social Value Model, introducing a revised framework for considering social value within in-scope central government procurement. The policy sets out the updated Social Value Model, minimum evaluation weighting requirements, implementation arrangements and expectations for contract management. It will apply to procurements commencing on or after 1 January 2027.

For organisations involved in public procurement, the publication of PPN 026 provides an opportunity to understand the updated model and begin preparing for its implementation.

A More Focused Social Value Model

One of the most significant changes introduced through PPN 026 is a more focused Social Value Model.

The updated model is centred on two outcomes:

• Good Jobs
• Skills

These outcomes are supported by policy outcomes and award criteria relating to creating good quality jobs, increasing opportunities for people facing barriers to employment, developing skills and investing in workforce capability.

The policy explains that these outcomes align with the Government Missions and are intended to support procurement activity that contributes towards those priorities.

Taken together, the revised model places a clearer emphasis on employment and skills within central government procurement, providing a more focused framework for how social value will be evaluated in these procurements.

Evaluation Weightings

PPN 026 also introduces minimum expectations for the weighting of social value during procurement evaluation.

For in-scope procurements with an estimated value between £1 million and £5 million, contracting authorities should apply a minimum 10% weighting for social value.

For procurements with an estimated value of £5 million or above, the minimum weighting increases to 20%.

The policy also sets out circumstances in which departments may depart from these minimum weightings, subject to appropriate governance and approval.

These revised weightings provide greater clarity about the role social value will play within central government procurement evaluations.

A Stronger Focus on Delivery

Alongside procurement evaluation, PPN 026 places greater emphasis on contract management and the delivery of social value commitments.

For contracts valued at £5 million or above, departments are expected to include at least three social value Key Performance Indicators (KPIs) within their contract management arrangements. These KPIs are intended to monitor the delivery of suppliers' social value commitments throughout the life of the contract.

The policy also encourages contracting authorities to consider monitoring arrangements for lower-value contracts where appropriate.

Together, these measures reinforce the importance of evidencing and monitoring delivery once contracts have been awarded.

Preparing for Implementation

Although PPN 026 was published in August 2026, the revised Social Value Model will apply to procurements commencing from 1 January 2027.

The policy notes that further supporting guidance, including metrics and practitioner guidance, will be published ahead of implementation to assist departments and suppliers in applying the revised model.

In the meantime, organisations may wish to familiarise themselves with the revised outcomes, award criteria and evaluation requirements as part of their preparation for the new approach.

Social Value Beyond Central Government Procurement

While PPN 026 introduces a revised Social Value Model for central government procurement, it does not change the wider application of social value beyond these procurements.

As the policy makes clear, the revised model applies to in-scope central government procurements from January 2027. Other sectors and frameworks continue to operate outside these requirements.

For organisations working across different parts of the public, private and voluntary sectors, understanding where PPN 026 applies, and where broader approaches to social value continue to be relevant, will remain important.

How the Institute for Social Value Can Help

As organisations prepare for the implementation of PPN 026, attention is likely to move from understanding the revised model towards delivering and evidencing social value commitments in practice.

At the Institute for Social Value, we are committed to supporting organisations and practitioners through learning, professional development and resources that help build confidence in delivering social value with rigour, integrity and meaningful evidence.

As further guidance and supporting metrics are published, we will continue to share practical learning and resources to help organisations understand the evolving requirements of PPN 026 while continuing to support good social value practice more broadly.