What does the new social value model mean for public sector procurement?

The Public Services (Social Value) Act 2012 requires public sector buyers to maximise economic, social and environmental benefits for local communities when buying goods and services.

In February 2025, Procurement Policy Note (PPN) 002 provided an update to the social value model that applies to central government contract procurements. This reflected the new Procurement Act 2023 (the Act), and aligned the model with the UK Government’s 5 missions:

1. Kick start economic growth
2. Make Britain a clean energy superpower
3. Take back our streets
4. Break down barriers to opportunity
5. Build an NHS fit for the future

From October 2025, the new model must be applied to central government procurements that meet the threshold requirement.

Answering your questions about the new social value model

My procurement started before October 2025 – do I have to use the new social value model for call-offs?

From October 2025, the new social value model (in PPN 002) is mandatory for all above-threshold Central Government procurements, however for call-offs, it would only apply under framework agreements which use the PPN 002 model.  

Framework procurements launched under the Procurement Act 2023 before October 2025 may have used the PPN 06/20 model or the PPN 002 model.

If the agreement used the PPN 06/20 model, then that version of the model should be applied to call-offs after October 2025.

 I previously used an agreement which enabled social value outcomes under PPN 06/20. Can I still use it for new contracts?

Yes, you can keep using agreements that were set up under the older PPN 06/20 model. 

Every CCS agreement allows you to ask suppliers to meet relevant social value outcomes. These outcomes must be related to the work being done in the contract.

The outcomes for social value in the old PPN 06/20 and the new PPN 002 do overlap. If the outcomes in an earlier agreement still help you meet your goals under the new PPN 002 model, you can continue to use them.

Aligning the new model with your existing social value strategy

Buying organisations in the public sector may have different social value strategies in place. They will focus on outcomes that are most important to their organisation.

You should check your existing agreement to see:

1. Which themes and outcomes the agreement allows
2. Which of these outcomes match your own organisation’s social value strategy

Talking with the market

You must always undertake pre-market engagement – this means talking to potential suppliers in the market before you launch a procurement. 

This makes sure everyone clearly understands what social value requirements are fair, reasonable, and relevant for your contract (known as a ‘call-off‘).

Find out more about social value

• what is social value?
• social value in public procurement 
• Cabinet Office guidance for PPN 002