PPN 026: The social value model · first published 5 August 2026
PPN 026 is the new Social Value Model for central government procurement, replacing all earlier social value guidance (including PPN 002 and PPN 06/20). It applies to new covered procurements worth £1 million or more where a tender notice is published on or after 1 January 2027 under the Procurement Act 2023. The model centres on two outcomes — Good Jobs (fair pay, fair working conditions, job creation) and Skills (training, in-work progression, talent pipelines) — and sets minimum evaluation weightings of 10% for contracts between £1m and £5m, and 20% for contracts worth £5m or more. For contracts worth £5m or more, at least one social value Key Performance Indicator (KPI) must be set and published. SMEs and Voluntary, Community and Social Enterprise (VCSE) organisations are explicitly named as groups that procurement rules should avoid burdening — evaluations are qualitative, not just quantity-based, specifically to keep the playing field level.
WHO THIS APPLIES TO
THE ENKII VIEW
The model's explicit instruction to keep evaluation qualitative — scoring method statements rather than raw quantities — is a direct protection for SMEs, who cannot always match the headcount commitments of large primes. The new Community Programmes route (a dated letter to a recognised scheme counts as a floor score of 6 out of 10 in the model scoring template) gives smaller firms a ready-made, low-cost path to a competitive social value score without having to design bespoke programmes. Firms that already employ people from the named target cohorts (NEETs, care leavers, veterans, people on probation, domestic abuse victims, people with disabilities) or offer above-minimum-wage pay and flexible working are now holding directly scoreable evidence — they should document and present it proactively in every bid from January 2027.
Every rule below quotes the official document verbatim.
PPN 026 applies to new covered procurements with a tender notice published on or after 1 January 2027. (In-scope central government contracting authorities, contracts ≥£1m, tender notices from 1 January 2027)
“From 1 January 2027, you should apply PPN 026 to new covered procurements worth £1m or more.”
PPN 026 replaces all previous PPNs on social value. (All in-scope central government contracting authorities)
“PPN 026 replaces all previous PPNs on social value.”
Contracts at or above the public contracts threshold but below £1m carry a 0% minimum social value weighting. (In-scope central government contracts below £1m)
“Public contract threshold [footnote 10] or higher, but lower than £1m — 0%”
Contracts worth £1m or more but less than £5m must apply a minimum 10% social value weighting. (In-scope central government contracts ≥£1m and <£5m, from 1 January 2027)
“Public contract threshold, and £1m or higher, but lower than £5m — 10%”
Contracts worth £5m or more must apply a minimum 20% social value weighting. (In-scope central government contracts ≥£5m, from 1 January 2027)
“£5m or higher — 20%”
For contracts valued at £5m or more, the buyer must set at least one Social Value Model KPI and publish it on the Central Digital Platform. (In-scope central government contracts ≥£5m)
“For contracts valued at £5 million or more [footnote 12] , set at least one Social Value Model KPI. You should set and publish this KPI on the Central Digital Platform”
A contract performance notice must be published at least every 12 months for contracts worth £5m or more, including social value KPI performance. (In-scope central government contracts ≥£5m)
“Publish a contract performance notice at least once every 12 months for contracts worth £5m or more, detailing supplier performance against your agreed metrics.”
The Social Value Model has two outcomes — Outcome 1: Good Jobs (criteria: 1a create good jobs/apprenticeships, 1b fair working conditions, 1c fair pay) and Outcome 2: Skills (criteria: 2a training/retraining, 2b in-work progression, 2c talent pipeline). (All in-scope procurements under PPN 026)
“Good Jobs — 1a. Create high-quality jobs / 1b. Fair working conditions / 1c. Fair pay; Skills — 2a. Training / Retraining / 2b. In-work progression / 2c. Talent Pipeline”
Evaluation of social value is qualitative — buyers must not score the quantity of what a supplier commits to, only the quality of the method statement and implementation plan. (All in-scope procurements under PPN 026)
“You should not score the quantity of what a supplier has committed to but it should be included as a commitment in the final contract, and monitored during the 'Manage' stage.”
A supplier committing to support a Community Programme with a dated letter should receive a minimum score of 6 in the model score-allocation method. (All in-scope procurements using the model score-allocation method at Annex C)
“a supplier committing to support a Community Programme that also meets all the Implementation Criteria should receive a minimum score of 6, but can still score additional points when answering the other parts of the Social Value Model question.”
Social value commitments must be additional to the core contract — suppliers cannot claim the contract's primary services as social value. (All suppliers bidding on in-scope procurements)
“Suppliers should commit to delivering social value that is additional to the core contract. For example, a contract for training services cannot claim those same services as social value under Social Value Model award criteria 2a.”
PPN 026 does not apply to utilities contracts awarded by private utilities or contracts where the primary purpose is overseas delivery. (Private utilities and overseas-delivery contracts)
“PPN 026 does not apply to utilities contracts awarded by private utilities [footnote 4] or to contracts where the primary purpose is overseas delivery (for example, overseas embassies).”
Evidence of poor social value KPI performance can be used to exclude a supplier from bidding on future contracts. (All suppliers on in-scope contracts)
“remind suppliers that evidence of poor performance against the social value KPIs can be used to exclude them from bidding on future contracts.”
Buyers must minimise barriers to entry for SMEs, VCSEs and mutuals when selecting social value outcomes, criteria and sub-criteria. (In-scope central government buyers; benefits SMEs and VCSEs bidding)
“You should minimise barriers to entry for start-ups, SMEs, VCSEs, or mutuals when selecting Social Value Model outcomes, criteria and sub-criteria.”
Target cohorts explicitly named in the model include NEETs aged 16–24, people transitioning from education, people with long-term health conditions or disabilities, SEND/neurodiverse individuals, care leavers, people on probation/prison leavers, victims of domestic abuse, and veterans. (All in-scope procurements under PPN 026)
“people not in employment, education or training (NEETs) … people transitioning from education to employment … people with a long term health condition or disability … care leavers … people on probation … victims of domestic abuse … veterans.”
For contracts of £5m or more, buyers may (as an additional measure) score the quantity of jobs created — including NEETs, jobs in high-growth sectors, and apprenticeships — as part of sub-criteria 1a, but only where market evidence confirms this would not create a barrier for SMEs. (In-scope central government contracts ≥£5m, at buyer discretion)
“For contracts valued at £5m or more you may consider scoring quantitative commitments as part of the Social Value Model's sub-criteria 1a … You should consider this on a case by case basis but for higher-value, longer-term contracts where, based on your market research and engagement you are confident that this would not present a barrier to entry for SMEs, VCSEs or treaty-state suppliers”
PPN 026 does not apply when a contract modification changes the value of a contract. (Contract modifications on existing contracts)
“You do not need to apply PPN 026 if a modification changes the value of the contract.”
Framework providers do not need to apply the minimum percentage weightings when awarding framework contracts, but must build in flexibility to allow call-off buyers to apply PPN 026 (e.g. 20% weighting for call-offs ≥£5m). (Framework procurement under PPN 026)
“you do not need to apply the minimum percentage weighting for the Social Value Model when awarding framework contracts. However, you should ensure that any in-scope framework allows contracting authorities to explicitly and objectively evaluate social value when awarding call-off contracts, in accordance with PPN 026 e.g. that allows for a 20% weighting for call-offs valued at £5m and above.”
This briefing is enkii's interpretation of the official document — the official text always governs.
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