What is Social Value?

The Crown Commercial Service (CCS) defines social value in procurement as “ensuring that public spending generates additional economic, social and environmental benefits beyond just the goods or services being procured.” In other words, it’s about delivering procurement that positively impacts people and communities beyond the scope of the contract.

Social value is split into three broad pillars. Suppliers with a high social value offering would need to show that they can meaningfully improve local wellbeing across one or more of these three areas:

Social – increasing the wellbeing of individuals and communities.
Economic – increasing societal wellbeing through economic policy and business practices.
Environmental – promoting sustainable practices and processes that protect the natural environment.

Current Legislation in England, Scotland and Wales

In England, the Social Value Act 2012 required public bodies to consider the additional social, economic and environmental impact of public spending when commissioning services. By 2016, 24 per cent of councils had a social value policy; by 2019, this had increased to 45 per cent. In 2020, the Cabinet Office developed new guidance on the Social Value Module and issued a Public Procurement Notice (PPN) mandating a minimum 10 per cent weighting for social value in procurement evaluations by central government departments, agencies and public bodies.

In Scotland, the Public Procurement Reform (Scotland) Act 2014, similar to its English equivalent, places an obligation on public sector bodies to seek best value when awarding contracts including the transfer of assets. In Wales, the Wellbeing of Future Generations (Wales) Act 2015 focuses on improving the social, economic and cultural well-being of Wales and places an obligation on public bodies to carry out sustainable development.

Social Value Policy in Northern Ireland

Northern Ireland is currently the only part of the UK without social value legislation. In the 2016-17 mandate, the then Finance Minister stated that the Executive would bring forward social value legislation. This announcement came off the back of a previous Private Member’s Bill that I proposed to bring to the Assembly.

However, it is now January 2025, and Northern Ireland is still waiting. Policies such as PPN 01/21 have been introduced by the Department of Finance which require central government departments to allocate at least 10 per cent of procurement evaluation criteria to social value. However, the current policy only applies to central government departments, leaving local councils and other public bodies outside of its scope. It can also be changed or removed at ministerial discretion, meaning it lacks reliability and consistency.

The proposed legislation would:

1. Ensure all public bodies demonstrate and maximise social value in their spending decisions, with a minimum weighting of 10 per cent.

2. Create consistency by ensuring social value is measured and reported.

3. Provide training for commissioners and procurement professionals to enhance their delivery of social value.

4.Require the Department to create simple tools for SMEs, social enterprises and charities to learn, implement and measure social value.

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* 5. If a professional, please state your profession:

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* 11. Do you believe that Northern Ireland should introduce legislation to ensure social value is prioritised in all public sector spending?

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* 12. Do you believe current procurement policies in Northern Ireland adequately address social value?

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* 13. Should the proposed legislation apply to all public sector bodies, such as local councils, as well as central government departments?

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* 14. Should public sector leaders be held responsible for embedding social value into their policies and budgets?

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* 15. Should the legislation create a consistent approach to measuring social value?

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* 16. Should a 10 per cent minimum weighting for social value be introduced in procurement decisions?

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* 17. Should mechanisms be included to monitor and report on compliance with social value commitments?

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* 18. Do public sector decision-makers understand the benefits of including social value in their policies and budgets?

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* 19. Should training on commissioning and delivering social value be mandatory for senior public sector staff?

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* 20. Should the government provide tools (e.g., webinars, free courses, tracking systems) to help smaller organisations understand and implement social value?

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