Definition
Public Services (Social Value) Act 2012
The law requiring buyers to consider social value in service contracts.
The Public Services (Social Value) Act 2012 requires public authorities in England and Wales to consider how procurement of services might improve the economic, social and environmental wellbeing of the area before starting the process. It is the legal foundation for social value scoring in tenders, though it does not mandate specific weightings.
What the Act actually requires
The Act applies to contracts for services (and works or mixed contracts with a services element) that fall within the scope of public procurement rules. Before a procurement begins, the contracting authority must consider whether the process of procuring or performing the contract could secure wider benefit, and if so, how, and whether to consult on this.
It is a duty to consider, not a duty to achieve a specific outcome, which is why the strength of social value requirements varies significantly between buyers and sectors.
How it shows up in tender documents
Because the Act only requires consideration, individual buyers translate it into practice differently. Central government departments typically apply a minimum social value weighting under Procurement Policy Note guidance and the National TOMs framework. Local councils and NHS bodies often set their own local priorities, reflecting issues such as unemployment, health inequality or climate targets in their area.
- Look for a dedicated social value question or weighting in the ITT
- Check whether the buyer references the National TOMs or a bespoke local framework
- Read the contract notice and specification for named local priorities
- Confirm whether social value commitments will be contractually binding through KPIs
Frequently asked questions
- Does the Social Value Act apply to goods-only contracts?
- The Act's statutory duty applies specifically to service contracts, though many buyers choose to apply social value requirements to goods and works contracts too as a matter of policy. Always check the specific procurement documents rather than assuming the Act does or does not apply.
- What happens if a buyer ignores the Social Value Act?
- The duty to consider is procedural rather than an outcome guarantee, so a challenge would typically focus on whether the authority genuinely considered social value before procuring, not on the substance of the decision reached. In practice, most public buyers now build social value into standard procurement processes.
- Is the Social Value Act the same as the National TOMs?
- No. The Act is the legal duty on public authorities to consider social value; the National TOMs is a voluntary measurement framework many buyers adopt to quantify and score social value commitments consistently within their tenders.
Related terms