Question to the Minister of Finance

Minister's Answer

The procurement policy note (PPN) 01/21 on social value in procurement was revised in February 2025 following reviews by the Strategic Investment Board (SIB) and key stakeholders, including the voluntary, community and social enterprise sectors, Departments and centres of procurement expertise (COPEs). The reviews identified the policy as having made a real difference to how contractors incorporate social value into their business models. However, they also identified some unintended consequences for small and microbusinesses that were finding it more difficult to compete with larger companies for contracts where social value was a scored criterion. Key changes were made to remove barriers for those businesses.

The policy ensures a consistent approach to social value in the public sector and mandates that, for services contracts above £500,000 and work contracts over the UK threshold, at least 10% of the total award criteria must be allocated to social value. The PPN further outlines requirements to incorporate social value in procurements under four themes: increasing secure employment and skills; building ethical and resilient supply chains; delivering climate action; and promoting well-being. To help maintain consistency in the scoring of social value, model criteria have been developed. That consistency also helps with reporting social value outcomes, which are monitored through the SIB portal.

The social value procurement policy also requires Departments to develop a social value strategy to align social value objectives with their procurement pipelines and to look for other opportunities across their operational and policy responsibilities to improve social and economic outcomes. My Department is the first to publish its social value strategy and recently published its first progress report on the implementation of that strategy.

The public procurement policy statement (PPPS) published in June 2025 sets out the Executive's priorities for a more streamlined, simplified and accessible procurement environment. It has four principles, including social value. The social value principle has six objectives, each of which is accompanied by a specific action and descriptor to ensure clarity and consistency in the delivery of the objectives.