A clearer Social Value Model – but are we narrowing the ambition?
This week's publication of the new UK Government Social Value Model (PPN 026) represents one of the most significant changes to national social value policy in recent years.
The headline changes are easy to identify, the model has been streamlined around two core outcomes: Good Jobs and Skills. Greater emphasis is placed on creating employment opportunities, supporting apprenticeships and developing the workforce needed to deliver the Government's growth agenda.
The increase in social value weighting to 20% for contracts over £5 million, reinforces the message that public procurement should do more than simply buy goods and services, it should create wider value. Although these changes technically only apply to central government procurement, I expect many public sector organisations, particularly across England, will now review their own approaches to social value.
Overall, I see plenty to welcome.
At LHCPG, our Social Value Strategy focuses on three priorities; Social Mobility, Individual Wellbeing, and Planet and Environment. The new Government model aligns strongly with the first two. Helping people into good employment, investing in skills, supporting those furthest from the labour market and improving workplace wellbeing are all areas where procurement can and does make a genuine difference. They are areas where we've seen our clients and appointed companies across the sector achieve meaningful results through good collaborative procurement.
However, is there a chance something important has been lost in simplifying the model?
The previous Social Value Model recognised that procurement has an important role in addressing environmental sustainability, climate resilience and the transition to net zero. I understand the rationale for creating a model that is clearer, easier to implement and simpler to measure. There is real value in that, no doubt. However, reducing the prominence of environmental outcomes feels like a missed opportunity at a time when those challenges have become more pressing, not less.
Public sector organisations continue to manage ambitious decarbonisation programmes while balancing financial pressures and long-term asset management. Procurement remains one of the strongest mechanisms available to influence those outcomes. The communities we support need opportunities today, but they also need places that remain sustainable for decades to come.
Perhaps this is where organisations such as LHCPG have an important role to play.
The Government's model provides a valuable national baseline, but many contracting authorities rightly look beyond national priorities to reflect the local needs of the places they serve. Social value must retain enough flexibility to respond to those local challenges, whether that means helping more people into work, improving health and wellbeing, strengthening community resilience or supporting the transition to net zero.
For me, successful public sector procurement has always been measured by the improvement it makes in the real world. Employment and skills are fundamental, but so are healthier communities, stronger local economies and a more sustainable environment.
Over the coming months we'll continue supporting our public sector clients and appointed companies to plan, deliver, monitor and track the things that make a real difference as further PPN 026 guidance is published and the implications become clearer.
The renewed focus on jobs and skills is a positive step. The challenge now is ensuring that a clearer model doesn't lead to a narrower ambition. Procurement has the ability to deliver meaningful economic, social and environmental impact, and we should continue to make the most of that opportunity.
