The Social Value Model
The Social Value Model defines how organisations are expected to deliver real, measurable social impact through public sector contracts.
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It goes beyond promises, focusing on tangible contributions to communities, economic growth, and outcomes that sit alongside core delivery.
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Social value is now a scored and weighted part of procurement.
It must be built in, delivered properly, and evidenced clearly not just written into a bid.
The Latest Update
A stronger focus on Delivery and Impact
Procurement Policy Note 002/25
From October 2025, the rules changed. The new model replaces PPN 06/20 and raises expectations across the board.
Organisations are now expected to deliver what they commit to, measure outcomes clearly, and evidence impact over time. This is no longer about writing a strong social value statement; it is about standing behind it with real delivery.
The update means social value is no longer judged on what organisations promise, but on what they can deliver, measure, and evidence over time.
How the model works
The model provides a structured way for public sector organisations to assess social value within bids and contracts, focusing on four key strategic areas.
Economic opportunity and employment
Creating jobs, developing skills, and supporting people into work.
Health and wellbeing
Improving physical and mental health and supporting better life outcomes.
Environmental sustainability
Protecting the environment and reducing carbon impact.
Supporting local communities
Strengthening communities through investment, engagement, and long term impact.
Strong Social Value is rooted in local need
Local Skills Improvement Plans (LSIPs) set out regional skills priorities, bringing together employers, education providers, and local partners.
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Each LSIP is led by a designated Employer Representative Body.
Aligning helps demonstrate:
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Understanding of local need
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Investment in workforce development
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Delivery aligned to real demand
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Purpose and Government Strategy
The IS-8 sectors are part of the UK’s Industrial Strategy, also known as Invest 2035, which focuses on eight key sectors considered critical for long-term economic success, innovation, and productivity.
These sectors are targeted for government support, investment, and strategic interventions to enhance competitiveness and regional development.
Each sector has a Sector Plan outlining government interventions, investment priorities, and regional focus areas.
These plans aim to:
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Boost productivity and innovation
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Support high-growth businesses
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Strengthen regional clusters and supply chains
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Guide strategic investment decisions