PPN026: A New Era for Social Value Delivery
The release of the new PPN 026 Social Value Model this week marks a significant shift for our industry. As someone working on the reporting and delivery side of Social Value, there is plenty to be positive about, but also a clear message that organisations will need to evolve how they plan, deliver, measure and report Social Value moving forward.
The updated model represents a significant narrowing of the previous model, and moves away from a broad range of themes, instead focusing on two core outcomes: Good Jobs and Skills. At its heart is a simple but powerful principle: every pound of public expenditure should help create stronger local economies, better employment opportunities and meaningful pathways into work for those facing barriers to employment.
It is important to note that the model applies directly to central government departments and associated public bodies only. Local authorities, housing associations and other public sector organisations may choose to adopt all or part of the model or continue using their own social value frameworks.
What Has Changed?
The revised Social Value Model introduces six Model Award Criteria (MACs), grouped under two headline outcomes.
Outcome 1: Good Jobs
The government is placing greater emphasis on the quality of employment created through contracts, not simply on the number of jobs. The three criteria are:
1a. Create and retain high-quality jobs
1b. Fair working conditions
1c. Fair pay
This reflects a growing expectation that suppliers will demonstrate how they support recruitment, retention, workforce wellbeing, and progression opportunities, while also creating employment within local communities.
Outcome 2: Skills
The second outcome focuses on addressing labour market shortages and supporting people into sustainable employment through:
2a. Training and retraining
2b. In-work progression
2c. Talent pipeline development
This places greater value on apprenticeships, work placements, retraining programmes and career development opportunities, particularly for individuals facing barriers to employment.
Evaluation Weighting
Perhaps the biggest headline for bidders is the increase in Social Value weighting.
Under PPN026:
Contracts between £1m and £5m must apply a minimum 10% weighting.
Contracts above £5m must apply a minimum 20% weighting.
Suppliers who fail to demonstrate credible delivery plans, robust evidence and measurable outcomes may find themselves at a competitive disadvantage.
KPIs and Evidence
Another important development is the increased focus on contract management and performance monitoring.
The policy requires Social Value commitments to be monitored through contractual mechanisms and KPIs, with contracts above £5 million requiring at least one dedicated Social Value KPI. Performance against these measures will be publicly reported and may be considered in future procurement decisions.
Next Steps
Whilst this change won’t be coming into effect until January 2027, contractors can get ahead by focusing on the following:
Reviewing Existing Social Value Strategies
Strengthening Employment Pathways
Building Stronger Community Partnerships
Developing Better Data and Reporting Processes
Creating Clear Talent Pipelines
Final Thoughts
For the contractor community, the message is clear: Social Value is becoming increasingly embedded within procurement decision-making and contract performance management. Those organisations that invest now in partnerships, workforce development, data management and measurable delivery will be well positioned to succeed under the new framework.
Further technical guidance is expected to be released in the autumn, and we look forward to gaining greater clarity on the detailed implementation of the new model.
