If you bid for central government contracts, a new Social Value Model (PPN 026) will replace PPN 002 for any procurement whose tender notice is published on or after 1 January. It’s the second shake-up in under two years, and it’s the bigger of the two.
So what’s actually changing?
The short version:
Social value is getting narrower, but it’s also getting more important.
The longer version:
🎯 A much tighter focus. The old model had 5 missions and 8 outcomes to choose from. The new one has just two: Good Jobs and Skills. Those split into six award criteria, so it’s much clearer what buyers are looking for.
💷 It only kicks in on bigger contracts. Social value is now mandatory only on central government contracts worth £1m or more (including VAT). Under PPN 002 it applied from about £140k.
⚖️ It counts for more on large contracts. The minimum weighting stays at 10% for contracts between £1m and £5m, but doubles to 20% for contracts of £5m and above. On a big bid, social value can now decide who wins.
📊 Your promises will be tracked. Contracts worth £5m+ must include at least one social value KPI. These KPIs are published, reported on at least once a year, and poor delivery can count against you in future tenders. Overpromising is now a real risk.
🔗 Frameworks get two checks. Social value will be assessed when a framework is let and again at call-off.
⏳ There’s a short overlap. Buyers can keep using the old model for procurements already in progress, so you may see both models for a while.
What does this mean for your bids?
Community work, environmental responsibility and supply chain resilience still matter. Councils and other public bodies outside central government don’t have to follow the new model, and many will keep their broader approach. For central government bids, though, expect social value questions to focus on these six criteria:
1a. Create and/or retain high-quality jobs. Create sustainable new jobs and apprenticeships, recruit from target groups, and grow the number of SMEs and VCSEs in your supply chain.
1b. Fair working conditions. Show how you make sure staff are treated fairly and equitably. That covers permanent contracts over agency use, flexible working, wellbeing support, reasonable adjustments and inclusive workplace practices.
1c. Fair pay. Pay above the National Living Wage, report on gender, disability and ethnicity pay gaps, and provide sick pay from day one.
2a. Training and retraining. Help people from all backgrounds gain the skills they need to get into work and stay there, especially where there are local skills shortages.
2b. In-work progression. Help employees at every level move into better-paid roles through mentoring, career advice and recognised qualifications.
2c. Talent pipeline. Build routes into your workforce for people who face barriers, with a focus on retention and progression, including essential skills like GCSE maths and English.
You're in good hands. Our Social Value Lead, Sarah Mohan, has an in-depth knowledge of all Social Value themes, old and new, and can support you through the transition to the new criteria.
Who are the target groups?
- Young people not in employment, education or training (NEETs)
- People moving from education into work
- People with a long-term health condition or disability
- Children and young people with SEND or neurodiversity
- Care leavers
- People on probation or in prison
- Victims of domestic abuse
- Veterans
The full sub-criteria and reporting metrics are in the government’s Guidance on using PPN 026: The Social Value Model (October 2026), Annex B. It’s worth a read before your next bid.
