The publication of PPN 026 The Social Value Model marks the next stage in that journey. The new Social Value Model, published by the Cabinet Office on 5 August 2026, places a sharper focus on jobs, skills and opportunities for people facing barriers to employment.
For public sector procurement professionals, the changes the changes intend to create a clearer framework for how social value can contribute to economic growth and community wellbeing through public procurement.
A simpler, more focused approach
The revised model defines social value as considering how suppliers will support communities through good jobs, skills and opportunities. The Government’s intention is to ensure that public spending supports local economies while helping people access and progress in employment.
One of the most notable changes is the move to two core outcomes:
Outcome one: Good jobs
This outcome focuses on creating and retaining quality employment opportunities, fair working conditions and fair pay. Suppliers may be assessed on their ability to:
- Create or retain high-quality jobs
- Support people into and within employment
- Offer fair working conditions
- Reward and retain staff through progressive pay practices
Outcome two: Skills
The second outcome centres on addressing skills shortages and supporting people to develop the capabilities needed to enter, remain in and progress within the workforce. This includes:
- Training and retraining opportunities
- In-work progression
- Developing future talent pipelines
- Apprenticeships, placements and other learning opportunities
The streamlined approach gives contracting authorities greater clarity about the outcomes they are seeking while making it easier for suppliers to understand what good social value delivery looks like.
New thresholds and weightings
The model applies to covered procurements worth £1 m or more, including VAT, and will take effect for relevant procurements commencing on or after 1 January 2027.
The policy also introduces minimum social value evaluation weightings:
- Contracts valued between £1 m and £5 m must include a minimum 10% weighting
- Contracts valued at £5 m or above must include a minimum 20% weighting
These requirements reinforce the importance of social value as a meaningful element of procurement decision-making rather than an additional consideration applied at the end of the process.
A greater emphasis on delivery
The new model places significant emphasis on monitoring and measuring outcomes.
Contracting authorities are expected to monitor social value commitments through contractual mechanisms, including key performance indicators (KPIs). For contracts valued at £5 m or more, at least one social value KPI must be established alongside the wider contract performance measures required under the Procurement Act 2023.
This reflects a wider shift towards demonstrating real-world impact. Social value commitments must not only be promised during procurement exercises but also delivered throughout the life of the contract.
What this means for NHS procurement
While the PPN applies directly to central government departments and associated bodies, other public sector organisations may choose to adopt the approach. Further guidance is expected in autumn 2026, including additional detail on assessment criteria and implementation.
For NHS procurement teams, now is a good time to review how social value is embedded across the procurement lifecycle. Early planning, stakeholder engagement and meaningful contract management will remain critical to achieving positive outcomes for local communities.
The focus on employment, workforce development and community opportunity aligns closely with the NHS’s role as an anchor institution and its ambition to improve health and economic outcomes through procurement activity. This makes social value not only a procurement consideration but an important tool for delivering wider organisational objectives. Based on the policy’s stated objectives and outcomes.
Looking ahead
The publication of the new Social Value Model provides a clearer direction of travel for public procurement. By prioritising good jobs, skills development and opportunities for people facing barriers to employment, the model seeks to maximise the value created through every pound of public spending.
As further guidance is released later this year, procurement teams will have greater clarity on how the model should be applied in practice. In the meantime, organisations can begin preparing by considering where procurement activity can create lasting benefits for the communities they serve.
If your organisation is reviewing its approach to social value, now is the time to start the conversation. The Hub can help you identify meaningful opportunities, develop proportionate evaluation criteria and build robust mechanisms for monitoring delivery, ensuring social value commitments translate into measurable community impact.
Contact: [email protected]
By Mandy Emery, Sustainability and Social Value Specialist