Definition
Social Value
The wider economic, social and environmental benefit delivered alongside a contract.
Social value is the additional environmental, social and economic benefit a supplier delivers alongside a contract, such as local job creation, apprenticeships or carbon reduction. Public buyers are required to consider it when awarding many contracts, and it is usually assessed as a scored quality criterion in the tender.
Where social value comes from
The legal basis is the Public Services (Social Value) Act 2012, which requires public bodies procuring services to think about how what is being procured might improve the economic, social and environmental wellbeing of the relevant area. Central government contracts above certain thresholds must also apply the National TOMs framework or an equivalent model, following Procurement Policy Note guidance.
In practice this means most services and works tenders, and many goods contracts, now carry a social value weighting of 10% or more within the quality score. Buyers set specific themes relevant to their area, such as local employment, supply chain resilience, wellbeing or environmental sustainability.
What buyers actually want to see
Generic pledges score poorly. Buyers want commitments that are specific, measurable, deliverable within the contract's geography and duration, and genuinely additional to what the supplier would do anyway.
- Named, quantified commitments (e.g. number of apprenticeships, work placements or local hires)
- A delivery plan showing who is responsible and how progress will be tracked
- Alignment with the buyer's stated local priorities rather than a generic corporate CSR statement
- Realistic commitments the supplier can evidence during contract management, not aspirational figures
Common mistakes
Suppliers frequently reuse the same social value answer across every bid regardless of the buyer's location or priorities, which is easy for evaluators to spot. Others promise more than they can deliver, creating contract management problems once awarded, since social value commitments are typically monitored and reported against throughout the contract term.
Frequently asked questions
- Is social value legally required in every tender?
- Not every tender, but the Social Value Act requires it to be considered for most public services contracts, and many buyers apply it more widely as policy. Central government contracts commonly mandate a minimum social value weighting, so check the specific tender documents rather than assuming.
- How much should social value commitments cost to deliver?
- There is no fixed rule, but commitments should be proportionate to the contract's value and duration. Overcommitting to win points can create financial and reputational risk if targets are missed, so cost and resource the commitments realistically before submitting.
- Can social value be subcontracted or delivered through partners?
- Yes, many suppliers deliver social value through charity partnerships, local supply chains or training providers. The tender response should still name the mechanism and show the prime contractor retains accountability for delivery and reporting.
Related terms