Social value questions now decide public sector tenders. A competitor with a similar price and quality score can win simply by giving a more credible social value answer. The good news for small businesses is that you’re often already doing the things buyers want to see. This guide explains what buyers are looking for in 2026, what changes in January 2027, and how to write answers that score.
What is social value?
Social value is the wider benefit your contract creates beyond the service itself: local jobs, training, support for people facing barriers to work, a fairer supply chain, environmental improvements. The Public Services (Social Value) Act 2012 requires public bodies buying services to consider it, and the Procurement Act 2023 asks all buyers to consider wider public benefit.
The rules in 2026, and what changes in 2027
Which rules apply depends on who you’re bidding to.
- Central government (now): departments and their agencies use the Social Value Model in PPN 002, mandatory since 1 October 2025. It is built around the government’s missions, with outcomes such as fair work, skills for growth, resilient supply chains, sustainable procurement, and employment for people facing barriers.
- Central government (from 1 January 2027): PPN 026, published on 5 August 2026, replaces that model for central government contracts worth £1 million or more. It narrows the focus to good jobs, skills and opportunities in local communities, with a minimum social value weighting of 10% for contracts from £1m to £5m and 20% for contracts of £5m and above. Contracts of £5m or more must also carry at least one social value KPI.
- Councils, the NHS and schools: these buyers aren’t bound by the central government model. Many use their own social value policies or measurement frameworks such as the National TOMs, so read each tender’s social value section carefully.
The direction is clear across all of them: buyers want concrete, measurable commitments about jobs, skills and the local economy.
Step 1: Read what the buyer actually asks for
Every tender says which outcomes it is scoring and how. Some pick one or two outcomes from a national model; others ask an open question. Answer only what is asked. A long list of unrelated good deeds scores lower than one well-evidenced commitment against the buyer’s chosen outcome.
Step 2: Audit what you already do
Most SMEs underclaim. Before writing, list what your business already does that buyers value:
- Local recruitment and the proportion of staff who live near where you work
- Apprenticeships, work placements, training and qualifications for staff
- Paying the real Living Wage, fair contracts, flexible working
- Hiring people facing barriers to work, such as care leavers, ex-offenders, veterans or people with disabilities
- Using local and SME subcontractors, and paying them promptly
- Reducing emissions, waste and travel
- Volunteering, school talks and community support
Step 3: Make specific, measurable commitments
Evaluators score what you will deliver on this contract, not your values. Turn each commitment into something that can be measured:
- Weak: “We are committed to supporting the local community.”
- Strong: “Over the 2-year contract we will recruit 2 new staff from within the borough, including 1 apprentice, and give 40 hours of careers support to a local secondary school, reported quarterly.”
Keep commitments proportionate to the contract’s size. Overpromising is easy to spot and can be held against you through contract KPIs.
Step 4: Structure your answer
A simple structure works for most questions:
- Outcome: name the outcome you are addressing, using the buyer’s wording
- Commitment: exactly what you will do, how much and by when
- Delivery: who is responsible, which partners you’ll work with (a local college, a charity, a jobcentre)
- Measurement: the metrics you’ll report and how often
- Evidence: a short example of something similar you’ve already delivered
Step 5: Evidence it and report it
Keep records from day one: recruitment data, training logs, supplier spend by postcode, case studies. Buyers increasingly track social value as a contract KPI, and from 2027 poor delivery on central government contracts can count against you in future bids. Good records also give you ready-made evidence for your next tender.
Common mistakes to avoid
- Copying the same answer into every bid regardless of the outcomes asked for
- Generic statements with no numbers, dates or owners
- Claiming things you do anyway without explaining what’s additional for this contract
- Commitments that are out of scale with the contract value
Next steps
Social value often decides close contests, and buyers looking for local suppliers start by searching for them. List your business free on LocoSearch and record your social value offer on your profile. Live listing holders also get our Free Resources, and you can read our guide on how to get onto a public sector framework next.
Sources: PPN 002: Taking account of social value in the award of contracts, Tussell: the central government social value model explained (PPN 026), Gowling WLG: PPN 026 and the new social value model.
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