PPN 026: The social value model · first published 5 August 2026
PPN 026 introduces a new Social Value Model for central government procurement, replacing the previous edition. It redefines social value as delivering "good British jobs, skills and opportunities" in local communities. For contracts worth £1m–£4.99m (inc. VAT), social value must be weighted at least 10% of the total evaluation score; for contracts worth £5m or more, that rises to at least 20%. The model provides six named award criteria across two outcomes — Good Jobs and Skills — covering things like fair pay, apprenticeships, work placements, and hiring people facing barriers to employment. This applies only to central government departments, their executive agencies and non-departmental public bodies (NDPBs), and only to procurements commenced on or after 1 January 2027 under the Procurement Act 2023 (PA23). Other public-sector bodies are encouraged but not required to follow the same approach.
WHO THIS APPLIES TO
THE ENKII VIEW
For SMEs already running apprenticeships, offering above-minimum-wage pay, or hiring locally, PPN 026 is a genuine opportunity: those practices now score up to 20% of the evaluation — a significant slice of the award. The model also explicitly requires buyers to check whether SMEs and voluntary, community and social enterprises (VCSEs) can meet the chosen criteria before selecting them, which provides a lever for SMEs to challenge disproportionate or exclusionary criteria. The main risk is that larger contractors can out-promise on volume; SMEs should be specific and evidence-rich rather than generic in their social value responses.
1. Build a 'social value evidence bank' now: document your current practices on pay (especially any above National Living Wage), flexible working, trade union access, local hiring, apprenticeships, and work placements — ready to slot into bid responses from January 2027.
SMEs bidding for any central government contract of £1m or more — Social value carries a minimum 10% weighting on £1m–£5m contracts and 20% on £5m+ contracts; firms that can evidence existing practice will score from day one rather than having to create new programmes.
2. Plan for at least one social value KPI in your contract — agree internally what you can credibly commit to and how you will measure and report it quarterly, before you submit your bid.
SMEs bidding for central government contracts of £5m or more — Contracts of £5m+ must have at least one social value KPI published on the central digital platform and reported at least every 12 months; poor performance can be used as a future exclusion ground.
3. If you run apprenticeships, work placements, or pre-employment training — especially for people facing barriers to employment (e.g. NEETs, care leavers, people with disabilities) — quantify these activities (numbers, days, outcomes) and link them explicitly to the six model award criteria when writing social value responses.
SMEs targeting central government work in any sector — The model explicitly rewards apprenticeships, work placements, and talent pipelines (criterion 2c); the document specifically cites '45 days of work experience' as the kind of activity the policy targets, so firms that already do this have a ready-made differentiator.
4. During market engagement or clarification stages, ask the buyer directly whether they have assessed the market for SME and VCSE presence before setting their social value criteria — this is an explicit requirement on buyers under PPN 026.
SMEs and VCSEs concerned about being disadvantaged by social value criteria — The PPN requires buyers to 'research market conditions including whether there are SMEs and VCSEs… before selecting the appropriate model award criteria', so buyers who have not done this may need to revise their approach.
5. Monitor the autumn 2026 guidance on framework call-offs, as the rules for how social value is assessed at framework level versus call-off level are still to be published — check GOV.UK or Crown Commercial Service updates before submitting framework bids.
SMEs bidding on central government framework agreements — The PPN states 'social value should be assessed at framework and call-off, in accordance with the PPN 026 guidance which will be published in autumn 2026'; bidding without that guidance risks misaligned commitments.
6. Watch for the autumn 2026 detailed sub-criteria and practitioner guidance, which will confirm how buyers score each of the six criteria and define target cohorts — update your bid templates and social value evidence bank once it is published.
All SMEs tracking procurement policy developments — The document explicitly states that 'detailed sub-criteria and practitioner guidance' will follow in autumn 2026; your scoring approach may need to change once evaluators have specific metrics to apply.
Every rule below quotes the official document verbatim.
This PPN applies only to central government departments, their executive agencies and non-departmental public bodies (NDPBs); other public-sector bodies may adopt it but are not required to. (Central government departments, executive agencies and NDPBs)
“This Procurement Policy Note (PPN) applies only to central government departments, their executive agencies and non-departmental public bodies.”
The PPN applies only to contracts valued at £1m total contract value inclusive of VAT or above, commenced under the Procurement Act 2023. (All in-scope central government contracts under PA23)
“It applies only to covered procurements valued at £1m total contract value inclusive of VAT or above, commenced under the Procurement Act 2023 (PA23).”
In-scope organisations must apply this PPN to procurements commenced on or after 1 January 2027; a procurement commences when a tender notice is published. (Central government departments, executive agencies and NDPBs)
“In-scope organisations should apply the provisions of this PPN to procurements commenced on or after 1 January 2027. A procurement is considered to have commenced at the point at which a tender notice is published.”
For contracts valued at £1m and above but less than £5m, social value must be weighted at a minimum 10% of the total evaluation score. (In-scope central government contracts, £1m–£4.99m inc. VAT, from 1 January 2027)
“for contracts valued at £1m and above, but less than £5m, apply a minimum 10% weighting (or equivalent measurement)”
For contracts valued at £5m or above, social value must be weighted at a minimum 20% of the total evaluation score. (In-scope central government contracts, £5m+ inc. VAT, from 1 January 2027)
“for contracts valued at £5m or above, apply a minimum 20% weighting (or equivalent measurement), of the total score that may be given to tenders”
Where absolute pricing methodologies (e.g. Price per Quality Point or Value for Money index) are used, the 10% or 20% applies to the non-price criteria (overall quality score) rather than the total score. (In-scope central government contracts using absolute evaluation methodologies, from 1 January 2027)
“Where absolute methodologies are used (such as Price per Quality Point (PQP) or Value for Money index), this will be either 10% or 20% of the non-price criteria (overall quality score).”
The Social Value Model has two outcomes — Outcome 1: Good Jobs (criteria 1a, 1b, 1c) and Outcome 2: Skills (criteria 2a, 2b, 2c) — giving six named award criteria in total. (In-scope central government contracts, from 1 January 2027)
“It is split into two outcomes with six award criteria to be used in procurements of major contracts: Outcome 1 Good Jobs: good employment opportunities in every postcode; Outcome 2 Skills: learning and development activities to address skills needs and shortages such as apprenticeships and work placements.”
Outcome 1 covers: 1a Create and/or retain high quality jobs; 1b Fair working conditions; 1c Fair pay. (In-scope central government contracts, from 1 January 2027)
“1a. Create and/or retain high quality jobs … 1b. Fair working conditions … 1c. Fair pay”
Outcome 2 covers: 2a Training/Retraining; 2b In-work progression; 2c Talent Pipeline. (In-scope central government contracts, from 1 January 2027)
“2a. Training / Retraining … 2b. In-work progression … 2c. Talent Pipeline”
For contracts with an estimated value of £5m or more (inc. VAT), at least one social value Key Performance Indicator (KPI) must be set, in addition to the three or more KPIs already required under section 52(1) of PA23. (In-scope central government contracts, £5m+ inc. VAT, from 1 January 2027)
“For contracts with an estimated contract value of £5 million or more (including VAT, valued in accordance with section 4 of, and Schedule 3 to, PA23), at least one social value KPI should be set. This should be in addition to the three or more KPIs set in accordance with section 52(1) of PA23.”
All KPIs must be published on the central digital platform and reported on at least once every 12 months via the contract performance notice. (In-scope central government contracts, £5m+ inc. VAT)
“Section 52(3) of PA23 requires that all KPIs are published on the central digital platform and reported on at least once every 12 months via the contract performance notice”
Poor performance against social value KPIs can be taken into account as grounds to exclude a supplier from future tenders. (All in-scope suppliers on central government contracts with social value KPIs)
“Evidence of poor performance against social value KPIs can be taken into account in considering whether there are grounds to exclude suppliers from bidding for future tenders.”
Buyers must research whether SMEs and VCSEs are present in the market before selecting award criteria, to ensure those organisations can meet the criteria. (In-scope central government buyers, all contract values £1m+, from 1 January 2027)
“In-scope organisations should research market conditions including whether there are small and medium enterprises (SMEs) and voluntary, community and social enterprises (VCSEs) and/or if the procurement is likely to attract international bidders, before selecting the appropriate model award criteria (MAC) to apply to their procurements.”
The PPN does not apply to contracts where the primary purpose is overseas delivery (e.g. for embassies), nor to private utilities contracts. (Exclusions from PPN 026 scope)
“This PPN does not apply to the procurement of contracts where the primary purpose is overseas delivery (e.g. for embassies). … This PPN does not apply to private utilities contracts.”
The government has cited 45 days of work experience as an explicit example of the kind of social value the Prime Minister wants delivered through this policy. (Talent Pipeline criterion (2c), in-scope central government contracts)
“For example, 45 days of work experience is exactly the kind of social value the Prime Minister is seeking to see delivered through this policy.”
Detailed sub-criteria and practitioner guidance, including guidance on framework call-offs, will be published in autumn 2026. (In-scope central government organisations and their suppliers)
“Associated guidance will follow in autumn 2026.”
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.