Social value has been a feature of public sector procurement since 2012. For most of that time, a well-written section at the back of a bid response was sufficient to clear the evaluation bar. From January 2027, that approach will cost points in a way that materially affects the outcome.

Social value has been a feature of public sector procurement since 2012. For most of that time, a well-written section at the back of a bid response was sufficient to clear the evaluation bar. From January 2027, that approach will cost points in a way that materially affects the outcome.

PPN 026, published by the Cabinet Office on 5 August 2026, sets a new Social Value Model for central government contracts. It applies to procurements commencing on or after 1 January 2027 for contracts of £1 million or more. For contracts between £1 million and £5 million, social value must carry a minimum weighting of 10%. For contracts of £5 million or above, the minimum rises to 20%.

PPN 026, published by the Cabinet Office on 5 August 2026, sets a new Social Value Model for central government contracts. It applies to procurements commencing on or after 1 January 2027 for contracts of £1 million or more. For contracts between £1 million and £5 million, social value must carry a minimum weighting of 10%. For contracts of £5 million or above, the minimum rises to 20%.

That means a fifth of the evaluation score on a major government contract is determined by the social value response. A weak response against a strong one does not get rescued by a better technical offer or a lower price.

That means a fifth of the evaluation score on a major government contract is determined by the social value response. A weak response against a strong one does not get rescued by a better technical offer or a lower price.

What PPN 026 actually requires from suppliers

PPN 026 narrows the Social Value Model around two outcomes.

PPN 026 narrows the Social Value Model around two outcomes.

Outcome 1: Good Jobs

Outcome 1: Good Jobs

Commitments around creating and retaining high-quality employment opportunities, fair working conditions, and fair pay. Buyers will be looking for commitments related to job creation in the specific geography of the contract, apprenticeships and work placements, and supply chain employment practices.

Commitments around creating and retaining high-quality employment opportunities, fair working conditions, and fair pay. Buyers will be looking for commitments related to job creation in the specific geography of the contract, apprenticeships and work placements, and supply chain employment practices.

Outcome 2: Skills

Outcome 2: Skills

Learning and development activities that address skills shortages, with a focus on training, retraining, in-work progression, and talent pipeline development.

Learning and development activities that address skills shortages, with a focus on training, retraining, in-work progression, and talent pipeline development.

Each outcome carries sub-criteria, with further detailed guidance expected from the Cabinet Office in autumn 2026, including a List of Community Programmes that suppliers can reference in their responses.

Each outcome carries sub-criteria, with further detailed guidance expected from the Cabinet Office in autumn 2026, including a List of Community Programmes that suppliers can reference in their responses.

PPN 026 also introduces a requirement for at least one formal social value-based KPI for contracts of £5 million or more. Social value commitments made at bid stage become contractually monitored performance targets after award. A commitment that cannot be delivered and measured creates a contract management problem and a bid quality problem.

PPN 026 also introduces a requirement for at least one formal social value-based KPI for contracts of £5 million or more. Social value commitments made at bid stage become contractually monitored performance targets after award. A commitment that cannot be delivered and measured creates a contract management problem and a bid quality problem.

Who PPN 026 applies to

PPN 026 applies to central government departments, their executive agencies, and non-departmental public bodies. It does not automatically apply to NHS trusts, ICBs, or local authorities, though many will adopt equivalent approaches in their own procurement policies.

PPN 026 applies to central government departments, their executive agencies, and non-departmental public bodies. It does not automatically apply to NHS trusts, ICBs, or local authorities, though many will adopt equivalent approaches in their own procurement policies.

NHS trusts procuring clinical services under the Provider Selection Regime include social value as one of the five key criteria under that regime. Local authorities typically apply their own social value policies, many of which have been moving toward higher weightings ahead of PPN 026. For central government procurement specifically, PPN 026's requirements are statutory for in-scope organisations from January 2027.

NHS trusts procuring clinical services under the Provider Selection Regime include social value as one of the five key criteria under that regime. Local authorities typically apply their own social value policies, many of which have been moving toward higher weightings ahead of PPN 026. For central government procurement specifically, PPN 026's requirements are statutory for in-scope organisations from January 2027.

Why most social value responses score poorly

The evidence is consistent across procurement evaluations: generic social value responses score significantly lower than specific, evidenced ones.

The evidence is consistent across procurement evaluations: generic social value responses score significantly lower than specific, evidenced ones.

A generic response describes good intentions. It commits to creating "employment opportunities in the local area", "supporting apprenticeships where possible", and "contributing to community wellbeing." These phrases tell an evaluator nothing about how the commitments will be delivered, what the supplier has done before, or how outcomes will be measured.

A generic response describes good intentions. It commits to creating "employment opportunities in the local area", "supporting apprenticeships where possible", and "contributing to community wellbeing." These phrases tell an evaluator nothing about how the commitments will be delivered, what the supplier has done before, or how outcomes will be measured.

Evaluators scoring social value responses under PPN 026 are looking for four things: specificity about what will be delivered, geography that matches the contract's delivery location, evidence of having delivered similar commitments previously, and measurement mechanisms that make the KPI monitorable. A response that addresses all four in relation to the buyer's specific geography and workforce context scores well. One that addresses none scores as a compliance exercise.

Evaluators scoring social value responses under PPN 026 are looking for four things: specificity about what will be delivered, geography that matches the contract's delivery location, evidence of having delivered similar commitments previously, and measurement mechanisms that make the KPI monitorable. A response that addresses all four in relation to the buyer's specific geography and workforce context scores well. One that addresses none scores as a compliance exercise.

How to write a social value response that scores well

Ground commitments in the delivery geography

Ground commitments in the delivery geography

PPN 026 frames social value as creating jobs and skills opportunities "in every postcode." Evaluators will assess whether commitments are relevant to the actual area where the contract will be delivered. A commitment to creating ten apprenticeship places in Manchester scores well on a contract delivered in Manchester. The same commitment on a contract delivered in Cornwall does not.

PPN 026 frames social value as creating jobs and skills opportunities "in every postcode." Evaluators will assess whether commitments are relevant to the actual area where the contract will be delivered. A commitment to creating ten apprenticeship places in Manchester scores well on a contract delivered in Manchester. The same commitment on a contract delivered in Cornwall does not.

Quantify

Quantify

The commitment to "support apprenticeships" is generic. The commitment to "fund and onboard two apprentices in [buyer's region] through [named programme] within twelve months of contract commencement, with progress reported quarterly" is specific, measurable, and directly mappable to a KPI. Every commitment should carry a number, a timeline, and a geography.

The commitment to "support apprenticeships" is generic. The commitment to "fund and onboard two apprentices in [buyer's region] through [named programme] within twelve months of contract commencement, with progress reported quarterly" is specific, measurable, and directly mappable to a KPI. Every commitment should carry a number, a timeline, and a geography.

Use the List of Community Programmes

Use the List of Community Programmes

The Cabinet Office is publishing a List of Community Programmes alongside the PPN 026 guidance in autumn 2026. These are government-endorsed programmes, employment initiatives, skills programmes, and training schemes that suppliers can reference in their responses to add credibility and structure to their commitments. A commitment built around a named community programme is easier for a buyer to verify and monitor than a bespoke commitment with no external reference point.

The Cabinet Office is publishing a List of Community Programmes alongside the PPN 026 guidance in autumn 2026. These are government-endorsed programmes, employment initiatives, skills programmes, and training schemes that suppliers can reference in their responses to add credibility and structure to their commitments. A commitment built around a named community programme is easier for a buyer to verify and monitor than a bespoke commitment with no external reference point.

Provide evidence of prior delivery

Provide evidence of prior delivery

A commitment to create employment opportunities is more credible when it is accompanied by evidence of having created comparable employment opportunities on previous contracts. Case studies, metrics, and third-party references from previous social value delivery carry significantly more weight than future commitments unsupported by past evidence.

A commitment to create employment opportunities is more credible when it is accompanied by evidence of having created comparable employment opportunities on previous contracts. Case studies, metrics, and third-party references from previous social value delivery carry significantly more weight than future commitments unsupported by past evidence.

Do not reuse old responses

Do not reuse old responses

PPN 026 replaces the previous Social Value Model under PPN 002. The previous model had different outcomes, different sub-criteria, and different evaluation expectations. A PPN 002 response renamed for PPN 026 will not score well because it will not address the specific criteria evaluators are using.

PPN 026 replaces the previous Social Value Model under PPN 002. The previous model had different outcomes, different sub-criteria, and different evaluation expectations. A PPN 002 response renamed for PPN 026 will not score well because it will not address the specific criteria evaluators are using.

The relationship between social value and bid/no-bid decisions

With social value carrying up to 20% of the evaluation score on contracts above £5 million, it becomes a material factor in bid/no-bid decisions in a way it has not previously been.

With social value carrying up to 20% of the evaluation score on contracts above £5 million, it becomes a material factor in bid/no-bid decisions in a way it has not previously been.

A supplier without a credible social value offer in a specific geography is competing at a structural disadvantage on large central government contracts from January 2027. That is a reason to assess social value capability as part of bid qualification rather than address it after the decision to bid has already been made.

A supplier without a credible social value offer in a specific geography is competing at a structural disadvantage on large central government contracts from January 2027. That is a reason to assess social value capability as part of bid qualification rather than address it after the decision to bid has already been made.

The bid/no-bid process should include a social value assessment for any above-threshold central government contract: does the organisation have evidence of delivering comparable social value commitments in the relevant geography, and can it make specific, measurable, and deliverable commitments that will score competitively?

The bid/no-bid process should include a social value assessment for any above-threshold central government contract: does the organisation have evidence of delivering comparable social value commitments in the relevant geography, and can it make specific, measurable, and deliverable commitments that will score competitively?

What to prepare before January 2027

The further guidance on PPN 026's sub-criteria, target cohorts, and community programmes was expected from the Cabinet Office in autumn 2026. That guidance will tell suppliers exactly how evaluators will apply the criteria and what evidence formats are expected.

The further guidance on PPN 026's sub-criteria, target cohorts, and community programmes was expected from the Cabinet Office in autumn 2026. That guidance will tell suppliers exactly how evaluators will apply the criteria and what evidence formats are expected.

Before that guidance lands, suppliers can take four practical steps.

Before that guidance lands, suppliers can take four practical steps.

First, audit existing social value evidence, including employment initiatives, apprenticeships, skills programmes, and community contributions on previous contracts, and identify what is documented and measurable rather than anecdotal.

First, audit existing social value evidence, including employment initiatives, apprenticeships, skills programmes, and community contributions on previous contracts, and identify what is documented and measurable rather than anecdotal.

Second, map delivery geographies against existing social value programmes and community partnerships to identify where credible, specific commitments can be made.

Second, map delivery geographies against existing social value programmes and community partnerships to identify where credible, specific commitments can be made.

Third, identify the community programmes listed in the PPN 026 guidance when published and assess which are relevant to the organisation's geographic footprint and operational model.

Third, identify the community programmes listed in the PPN 026 guidance when published and assess which are relevant to the organisation's geographic footprint and operational model.

Fourth, review existing bid templates for social value sections and identify what needs to change to address the PPN 026 outcomes specifically, rather than the previous model's themes.

Fourth, review existing bid templates for social value sections and identify what needs to change to address the PPN 026 outcomes specifically, rather than the previous model's themes.

The suppliers who score highest on social value from January 2027 will be the ones who started building the evidence base and the delivery infrastructure in 2026.

The suppliers who score highest on social value from January 2027 will be the ones who started building the evidence base and the delivery infrastructure in 2026.

Arcamus tracks contract award data, spend trends, and procurement signals across central government and NHS buyers, helping commercial teams understand which opportunities are worth bidding for and how buyers are evaluating responses. See what the market looks like for your category.

Arcamus tracks contract award data, spend trends, and procurement signals across central government and NHS buyers, helping commercial teams understand which opportunities are worth bidding for and how buyers are evaluating responses. See what the market looks like for your category.