Guidance: PPN 026: The social value model

The government wants taxpayers’ money to be spent in a way that values and invests in local communities. For in-scope central government contracting authorities, social value through procurement using the Social Value Model is defined as:

‘taking account of how a supplier will work for our communities to provide good British jobs, skills and opportunities in every postcode’

This guidance is for commercial practitioners procuring contracts in scope of Procurement Policy Note 026 (PPN 026). It explains how to use PPN 026: The Social Value Model in all stages of the procurement process.

PPN 026 replaces all previous PPNs on social value. From 1 January 2027, you should apply PPN 026 to new covered procurements worth £1m or more. If you award a contract using a framework set up before this date, you may need to consider the PPN in use at the time the framework was awarded. For frameworks procured:

If using previous models, you should still select outcomes that deliver jobs, skills, and opportunities. See section 4.3 for details on awarding contracts using frameworks.

You should apply the correct Social Value Model weighting and publish Key Performance Indicators (KPIs) as needed, depending on contract value. You do not need to apply PPN 026 if a modification changes the value of the contract.

Please contact [email protected] if you have any questions.

1.2. Wider obligations and value for money

You should apply this guidance in compliance with legal requirements and international obligations. Departing from this guidance is permitted when necessary to comply with international agreements, and to keep requirements relevant and proportionate and ensure fair treatment and non-discrimination.