PPN 002: Taking account of social value in the award of contracts · first published 13 February 2025
This Procurement Policy Note (PPN 002) updates the rules for how central government must assess "social value" — the wider social, economic and environmental benefits a supplier delivers — when awarding contracts. It replaces the previous PPN 06/20 (issued September 2020) and introduces a new Social Value Model tied to the Government's current missions (e.g. economic growth, community benefit). In-scope organisations (central government departments, executive agencies and non-departmental public bodies) must apply a minimum 10% weighting to social value in their scoring. This only applies to above-threshold procurements (i.e. contracts above the legal procurement thresholds) commenced on or after 1 October 2025 under the Procurement Act 2023. If your firm bids for central government contracts, you will need to provide a written social value offer as part of your tender response, and any commitments you make will be written into the contract as enforceable terms or key performance indicators (KPIs).
WHO THIS APPLIES TO
THE ENKII VIEW
The 10% minimum social value weighting is a firm, enforceable floor — meaning every above-threshold central government tender will now include scored social value questions that a small business must answer convincingly to stay competitive. SMEs that already invest in local hiring, apprenticeships, community engagement or environmental improvements have a real, scorable advantage here, but they must articulate those activities in tender responses rather than assume buyers will notice. Critically, whatever you promise in your bid becomes a contractual obligation — so small businesses should only commit to what they can genuinely deliver and measure.
1. Build a 'social value evidence bank' now: document your local hiring practices, apprenticeships, community partnerships, environmental initiatives and supply-chain diversity so you can drop concrete, evidenced examples into tender responses from October 2025.
All SMEs bidding for above-threshold central government contracts — Social value is assessed qualitatively — buyers score the quality of your written offer. The PPN 002 Social Value Model requires suppliers to respond as part of their normal tender response, so pre-prepared, specific evidence will directly strengthen your score on the mandatory 10% weighting.
2. Only commit in your bid to social value activities you can actually deliver and measure — check you can track and report on each promise before submitting.
All SMEs bidding for above-threshold central government contracts — The document states: 'All social value commitments made by suppliers during the procurement process must be reflected in the contract either as contract terms, key performance indicators, or performance indicators.' Overpromising creates contractual risk.
3. Set up a process to post any new UK-based roles on the Government's 'Find a Job' website (find-a-job.service.gov.uk) and include the work location in the job advert — make this a standard step in your recruitment workflow.
SMEs that will hire staff to deliver a central government contract — The PPN includes a standard contract clause (Annex A) requiring suppliers and subcontractors to advertise UK roles on 'Find a Job' during the contract period; non-compliance would be a contract breach.
4. Read the 'Guide to Using the PPN 002 Social Value Model' on GOV.UK before your next central government bid, and map your existing activities to the model's menu of outcomes and award criteria so your response uses the buyer's own language.
SMEs preparing bids for central government contracts from 1 October 2025 — The model sets a specific menu of outcomes and criteria; buyers select from this menu and assess responses against it. Using the model's own terminology and structure will make your response easier to score highly.
5. Confirm whether each new procurement you are entering was 'commenced' on or after 24 February 2025 (Procurement Act 2023 rules) or before (old rules still apply) — ask the buyer in the clarification period if unclear.
SMEs regularly bidding for central government work — PPN 002 only applies to covered procurements under the Procurement Act 2023 commenced on or after 24 February 2025, and is mandatory for in-scope organisations only from 1 October 2025. Knowing which regime applies tells you which social value model the buyer is using.
6. Check whether the contracting authority has voluntarily adopted PPN 002 by reviewing their procurement documentation or asking at the clarification stage — don't assume the 10% minimum weighting applies automatically.
SMEs bidding for contracts outside central government (e.g. local councils, NHS trusts) — The PPN states 'Other contracting authorities may wish to apply the approach set out in this PPN' but are not required to; the mandatory rules only bind central government in-scope organisations.
Every rule below quotes the official document verbatim.
In-scope organisations must apply PPN 002 to procurements commenced under the Procurement Act 2023 on or after 1 October 2025; before that date they may use either PPN 002 or the old PPN 06/20. (Central government departments, executive agencies and non-departmental public bodies (in-scope organisations); above-threshold procurements under the Procurement Act 2023)
“In-scope organisations must apply this PPN to procurements commenced under the Procurement Act 2023 on or after 1 October 2025. For procurements commenced under the Procurement Act 2023 prior to this date, in-scope organisations can choose to apply this PPN or continue to use PPN 06/20 during this transition period.”
A minimum 10% weighting of the total score must be applied to social value; where absolute pricing methodologies (e.g. Price per Quality Point) are used, 10% applies to the non-price (quality) criteria score. (All in-scope procurements where social value is relevant, proportionate and complies with section 23 of the Procurement Act 2023; central government in-scope organisations)
“In-scope organisations must apply a minimum 10% weighting (or an equivalent measurement) of the total score, for social value. Where absolute methodologies are used (for example Price per Quality Point (PQP) or Value for Money index) this will be 10% of the non-price criteria (overall quality score).”
Social value commitments made by suppliers during the procurement process must be reflected in the contract as contract terms, KPIs or performance indicators. (All suppliers bidding for in-scope central government procurements; all above-threshold covered procurements)
“All social value commitments made by suppliers during the procurement process must be reflected in the contract either as contract terms, key performance indicators, or performance indicators.”
This PPN only applies to above-threshold (covered) procurements under the Procurement Act 2023; it does not apply to below-threshold procurements, private utilities contracts, or MoD defence and security contracts. (All suppliers and in-scope organisations; scope-limiting rule)
“this PPN only applies to procurement which is a covered procurement under the Procurement Act 2023 - that is to say, above-threshold. It does not apply to below-threshold procurements, private utilities contracts or to the Ministry of Defence in relation to defence and security contracts as defined by section 7 of the Procurement Act 2023.”
The PPN applies to central government departments, executive agencies and non-departmental public bodies; other contracting authorities (e.g. local councils) may choose to adopt it but are not required to. (All contracting authorities across the public sector)
“This Procurement Policy Note (PPN) applies to all central government departments (departments), executive agencies and non-departmental public bodies and are referred to as 'in-scope organisations'. Other contracting authorities may wish to apply the approach set out in this PPN.”
Where employment opportunities are created to perform the contract, they must be advertised on the Government's 'Find a Job' website and include the location of the role. (Suppliers and subcontractors creating employment opportunities to perform an in-scope central government contract)
“Where, during the Contract Period, the Supplier or a Subcontractor need to hire Supplier Staff for a role based in the United Kingdom the role should be published on the Governments' 'Find a Job' website and include the location at which Supplier Staff would be expected to perform the role”
Social value is assessed qualitatively at tender stage using a model question and a menu of award criteria and sub-criteria from the PPN 002 Social Value Model, which buyers select and tailor to the contract subject matter. (All suppliers bidding for in-scope central government above-threshold procurements from 1 October 2025)
“Suppliers respond with their offer, as part of their normal tender response; the social value aspect of the tender is then assessed on a qualitative basis using the award criteria and sub-criteria set out in the model question and the criteria and sub-criteria select from the menu of options in the model.”
In-scope organisations must ensure unnecessary burdens are not placed on suppliers, with particular regard to barriers faced by voluntary, community and social enterprises (VCSEs) and small and medium-sized enterprises (SMEs). (In-scope organisations; relevant context for SMEs and VCSEs bidding for central government contracts)
“When taking account of social value benefits, in-scope organisations must ensure that unnecessary burdens are not placed on suppliers, and in particular have regard to any barriers to participation faced by voluntary, community and social enterprises, and small and medium sized enterprises as set out in section 12(4) of the Procurement Act.”
The Procurement Act 2023 and Procurement Regulations 2024 — and therefore this PPN — apply only to procurements commenced on or after 24 February 2025. (All in-scope organisations and suppliers; transitional rule)
“The Procurement Act 2023 and the Procurement Regulations 2024 apply to procurements commenced on or after 24 February 2025.”
This briefing is enkii's interpretation of the official document — the official text always governs.
Source document © Crown copyright, reused under the Open Government Licence v3.0 via the GOV.UK Content API. enkii tracks every Procurement Policy Note and briefs changes the day they land — see all briefings.