More Than a Tick Box: The New Reality of Social Value
Social value has become a fundamental consideration in public procurement, moving beyond cost and quality to ensure that public spending delivers wider benefits for society. At its core, social value is about creating positive economic, environmental and social outcomes through the goods and services that organisations procure and deliver.
This can take many forms, from supporting smaller local businesses within supply chains and reducing carbon emissions, to promoting diversity, equality and inclusion across the workforce and supplier networks. It also encompasses meaningful contributions to local communities through charitable initiatives, volunteering programmes and community development schemes.
As public sector organisations place increasing emphasis on social value within procurement processes, suppliers are expected to demonstrate genuine and measurable commitments in this area. Organisations seeking to succeed in the public sector and secure contract opportunities must therefore ensure that social value is not simply a box-ticking exercise, but a core part of how they operate and create lasting impact. Gone are the days where social value could be viewed as an additional requirement or a compliance exercise. The most successful organisations embed social value into their strategy, culture and day-to-day operations, ensuring that it informs decision-making at every level.
The Procurement Act and its impact on Social Value.
The introduction of the Procurement Act 2023 has arguably had the most significant impact on the role of social value within public sector procurement. Buyers are no longer focused solely on the goods or services being procured; they increasingly want to understand the wider benefits that suppliers will deliver if awarded the contract. As a result, social value has moved from being a supplementary consideration to a key component of procurement decision-making.
One of the most notable changes introduced by the Act is the shift from awarding contracts based on the Most Economically Advantageous Tender (MEAT) to the Most Advantageous Tender (MAT). This change reflects a broader emphasis on overall value, placing greater importance on quality, service delivery, innovation, sustainability, and social impact rather than focusing predominantly on cost. Contracting authorities are now encouraged to consider how suppliers will contribute to wider economic, social, and environmental outcomes alongside delivering the core contract requirements.
Consequently, social value is now a mandatory consideration across public procurement activities and is often heavily weighted within tender evaluations. In many procurements, social value can account for up to 20% of the total available marks. This means suppliers must treat social value responses with the same level of importance as technical and commercial submissions. Even where a bidder achieves near-perfect scores elsewhere, failing to maximise social value marks can significantly reduce their overall competitiveness and ultimately affect the outcome of the procurement.
The Procurement Act has also strengthened accountability for social value commitments. Previously, suppliers could often provide high-level statements of intent with limited scrutiny of delivery. Today, contracting authorities are increasingly attaching measurable Key Performance Indicators (KPIs) to social value commitments, requiring suppliers to demonstrate tangible outcomes throughout the contract term. Failure to deliver against these commitments can have serious consequences, including contractual remedies, reputational damage, and, in cases of persistent underperformance, potential inclusion on debarment lists that may impact future bidding opportunities.
As a result, social value should no longer be viewed as a compliance exercise or a collection of aspirational promises. Successful suppliers are those that develop realistic, measurable, and contract-specific social value commitments that can be delivered, monitored, and evidenced throughout the life of the contract.
Understanding the TOMs Framework
When responding to public sector tenders, suppliers may encounter references to the TOMs Framework or be asked to complete TOMs-based social value responses. Developed by the Social Value Portal, the TOMs Framework provides a consistent methodology for measuring, reporting, and evidencing social value commitments.
TOMs stands for Themes, Outcomes and Measures. Themes represent broad areas of impact, such as Jobs, Growth, Social, Environment, or Innovation. Outcomes describe the positive change that an activity is intended to achieve, such as reducing unemployment, improving skills, or strengthening community wellbeing. Measures are the quantifiable actions used to demonstrate delivery and track progress against those outcomes.
Understanding the TOMs Framework is valuable even when it is not explicitly required within a tender. The framework provides recognised calculations and methodologies that can strengthen social value responses by demonstrating the anticipated value of proposed initiatives. For example, volunteering activity can be quantified using established TOMs values, with specialist or expert volunteer time often generating significantly greater social value than standard volunteering hours. By applying these recognised measures, suppliers can provide more robust, evidence-based commitments that resonate with evaluators.
Focusing on Economic, Social and Community Outcomes
A practical way to structure any social value strategy is to focus on three core areas: Economic, Social and Community outcomes. These pillars sit at the heart of most social value objectives and provide a useful framework for developing initiatives that create meaningful and measurable impact.
Importantly, social value is not reserved for large organisations with significant budgets. Businesses of all sizes can make a positive contribution by focusing on areas where they have genuine expertise, resources, and the ability to deliver sustainable outcomes. The most successful social value commitments are often those that align closely with an organisation's capabilities and can be consistently delivered throughout the life of a contract.
Economic Impact
Economic initiatives focus on creating opportunities that support local prosperity, workforce development, and long-term economic growth.
This may include creating sustainable employment opportunities for local people, implementing inclusive recruitment practices, promoting workforce diversity, and establishing programmes that support employee wellbeing, such as mental health initiatives or employee assistance programmes.
Economic value can also be generated through skills development and knowledge sharing. Examples include apprenticeships, mentoring programmes, work experience opportunities, career development pathways, CV workshops, mock interviews, and training initiatives that help prepare the next generation for employment. Sharing expertise with buyers, supply chain partners, local businesses, educational institutions, and community organisations can also contribute to strengthening local skills and capabilities.
Supporting local economies through procurement decisions is another important consideration. Using local suppliers, sourcing goods and services locally, and encouraging spending within the local area helps retain investment within communities and contributes to wider economic growth. Even relatively small decisions, such as using local accommodation, venues, or hospitality providers when delivering contracts, can generate positive economic benefits.
Social and Community Impact
Social and community initiatives are often the broadest and most diverse area of social value. They focus on improving the health, wellbeing, resilience, and quality of life of local communities.
To develop meaningful commitments, it is essential to understand the priorities of the contracting authority and the communities they serve. Most public sector organisations publish social value strategies, community plans, or policy documents that identify local challenges and priorities. Reviewing these documents can provide valuable insight and help suppliers tailor their responses to align with the outcomes that matter most to the buyer.
Examples of social and community initiatives include volunteering time to support local charities and community projects, staff fundraising activities, charitable donations, or providing goods and services to organisations operating within the local area. Businesses may also collaborate with local partners to address specific community needs and deliver targeted outcomes.
Importantly, organisations do not always need to be physically based within a community to create meaningful impact. An IT company might provide website hosting or technical support to a local charity, while a marketing agency could offer design services for community groups. Businesses may provide meeting space for local organisations, donate old equipment to schools or charities, or share specialist expertise to help strengthen community organisations. The key is to identify opportunities where the organisation's existing resources and capabilities can be used to create genuine and measurable benefit.
You can take all these examples and make them specific to the area for a more tailored approach. For example, if you’re printing flyers, through research you may know that the area has a large foreign population, you could also offer flyers in different languages. If you are bidding for a contract near the coast, think about how you could support area specific charities like the RNLI. Knowing the authority and area is key to success (Look at local data, demographic data, read the social value policies and any economic strategy and environmental plans – Anything that is available will support your tendering, and help you build tailored social value plan). It is important to not be a square peg in a round hole, by trying to fit initiatives for one contract into another, as areas differ so greatly and one initiative such as, supporting a homeless charity in London, may not be applicable for a contract in the South West where homelessness isn’t as prevalent.
Common Pitfalls and How to Avoid Them
While social value is now a well-established component of public sector procurement, many suppliers continue to make avoidable mistakes that limit the effectiveness of their responses and reduce their evaluation scores. The most successful submissions demonstrate not only a commitment to creating social value, but also a clear understanding of how that value aligns with the contract, the buyer, and the communities affected by the service.
Ensure Your Commitments Reflect Buyer Priorities
A common mistake is developing social value proposals based solely on organisational preferences rather than the specific priorities of the contracting authority. Buyers are looking for commitments that support their strategic objectives and local outcomes, not generic initiatives that could be applied to any contract.
Before developing a social value plan, suppliers should review the procurement documentation carefully and research any relevant social value policies, community plans, economic strategies, or corporate priorities published by the authority. Demonstrating a clear link between proposed activities and the buyer's objectives will significantly strengthen the credibility and relevance of a submission.
Focus on Local Relevance
Social value is most effective when it delivers benefits where they are needed most. Suppliers sometimes propose initiatives that are convenient for their own organisation but offer limited value to the communities connected to the contract.
Where internal resources or local knowledge are limited, partnering with community organisations, charities, educational institutions, or local businesses can help ensure commitments are both relevant and deliverable. Buyers are increasingly looking for evidence that suppliers have considered the specific needs and characteristics of the local area rather than adopting a generic approach.
Deliver Additional Value, Not Duplication
Effective social value should complement existing provision rather than replicate it. Suppliers should consider whether their proposed activities address a genuine need or simply duplicate initiatives that are already available and operating successfully within the community.
This does not mean avoiding popular initiatives altogether, but it does mean demonstrating how the proposed activity will fill a gap, reach an underserved audience, or enhance existing provision. Social value is ultimately about creating additional benefits, and buyers are more likely to reward commitments that clearly add something new.
Avoid a "One-Size-Fits-All" Approach
Many organisations have established social value programmes that have delivered positive results elsewhere. However, a common pitfall is attempting to apply the same initiatives across every contract regardless of local circumstances.
Previous successes should be used as evidence of capability and delivery experience, but social value commitments should always be adapted to reflect the specific contract, location, and community needs. Buyers are looking for tailored solutions rather than recycled commitments, and responses that demonstrate genuine consideration of local requirements are often viewed more favourably.
Support Commitments with Clear Delivery Plans
Strong intentions alone are rarely enough to secure high social value scores. Buyers increasingly expect suppliers to demonstrate exactly how commitments will be delivered, monitored, and measured throughout the contract term.
Social value proposals should include clear targets, defined activities, timescales, and measurable outcomes. Where possible, commitments should be supported by specific numbers and performance indicators, providing the same level of detail and accountability that would be expected for the core contract requirements. A well-defined implementation plan gives buyers confidence that commitments are realistic, achievable, and capable of delivering meaningful impact.
To conclude
Social value is no longer a secondary consideration in public procurement; it is an integral part of how contracts are evaluated, awarded, and managed. Organisations that take the time to understand buyer priorities, develop meaningful local commitments, and evidence measurable outcomes will be best placed to maximise opportunities and deliver lasting impact. Ultimately, successful social value is not about making the biggest promises, but about creating genuine, sustainable benefits that support communities, strengthen local economies, and contribute to wider public sector objectives long after the contract has been awarded.
Social Value is now integral to winning UK tenders