The Social Value Model from PPN 06/20 to PPN 002: Your complete guide

To win those lucrative (and competitive) central government contracts, you need to understand both Social Value, and the Social Value Model.

But if these topics are a bit of a mystery to you, don’t worry – we’re here to help. In this complete supplier’s guide, we will:  

• Define Social Value
• Explore both the original Social Value Model (introduced with PPN 06/20) and the new version (introduced with PPN 002)

• Share our top tips on winning work under the Social Value Model 

Plus, we’ll discuss how to get the qualitative and quantitative information required for a full view of Social Value by combining the Social Value Model with the Social Value TOM System™.  

Table of contents

1. What is Social Value?
2. What is the Social Value Model?
3. Understanding the Social Value Model – both original and new
4. Breakdown: The first Social Value Model
5. Breakdown: PPN 002 and the updated Social Value Model
6. How to win work under the Social Value Model
7. Why you should be measuring Social Value

What is Social Value?  

Social Value is the value an organisation contributes to society beyond its reported profit, and beyond business-as-usual standards or core contractual requirements. While profit is measured in standard accounting terms, Social Value is measured by the organisation’s actions. 

It originated in the Public Services (Social Value) Act of 2012, which requires commissioners of public service works to consider the wider economic, environmental, and social impacts of a project — not just the bottom line. 

But for central government, Social Value remained just that — a consideration — until mid-2020, when a combination of events (including the coronavirus pandemic, Brexit, and the collapse of construction and services giant Carillion, a major strategic supplier to the UK public sector) prompted another big legislative change…

💡 In-depth breakdown: What is Social Value?

What is the Social Value Model?

Although ministers wanted Social Value to be explicitly evaluated rather than merely “considered”, they decided it was impractical to introduce new legislation updating the existing Social Value Act.  

Instead, they created PPN 06/20, a public policy note developed by a team of experts that provided comprehensive guidance on evaluating Social Value in central government contracts in the form of the ‘Social Value Model’, comprising five Social Value Themes and eight Policy Outcomes.

The Social Value Model embedded Social Value into the procurement processes of all central government departments, their executive agencies, and non-departmental public bodies, representing 400+ different organisations. 

💡 Learn more: For the original Themes and Outcomes, check out this Social Value Model quick reference table. 

PPN 002 and a NEW Social Value Model

In 2024 the UK elected a new Labour Government, which soon made its mark with a flurry of big public procurement decisions.

These included pushing the go-live date of the Procurement Act 2023 back to February 2025. This was to allow for the publication of an updated National Procurement Policy Statement aligned to its Five Missions – with stronger mandates around Social Value.

You can check out our analysis of the NPPS below:

Guy Battle discusses: What the new NPPS means for Social Value

But there was one other big change: as of 24 February 2025, an updated Social Value Model is available for authorities to use – and will become mandatory on 1 October 2025.

Like the NPPS, the new Model is based around the 5 Missions, with eight Outcomes that break down into Model Award Criteria, model sub criteria, and standard reporting metrics.

💡 Explore: PPN 002 and the Government’s guide to the Social Value Model 

Understanding the Social Value Model - original and new

Until 1 October, some authorities will continue to use the old Model, while many others will move straight to the updated version.

But whichever Model you are bidding under, what government buyers are really looking for is contract-specific commitments to deliver additional (beyond core contract requirements) public benefits in line with the desired outcomes. 

With that in mind, in the next sections we provide a breakdown of both Models, starting with the original Model.

👇 Focusing on the new Model? Jump straight to our breakdown 

Breakdown: The first Social Value Model

Since procurers generally don’t expect bidders to address all Policy Outcomes, our advice is to zero in on the ones that your business is best positioned to deliver. 

Let’s look at the first Model’s Themes and Policy Outcomes – plus a few tips on addressing them.

COVID-19 recovery 

Policy Outcome: Help the economy, individuals and communities recover from COVID-19 

While this Policy Outcome was front of mind in 2020 when the Social Value Model was released, it comes up less in tenders today. Nonetheless, suppliers may have an opportunity to shine by showing how they will help those suffering from Long Covid or who have compromised immune systems. 

Tackling economic recovery 

Policy Outcome: Create new businesses, jobs and skills 

This covers everything from creating economic opportunities for those experiencing barriers to work, to working with smaller business in the supply chain, to upskilling your employees.  

Policy Outcome: Increase supply chain resilience and capacity 

Here you’ll need to demonstrate knowledge of your supply chain and show that you will foster a diverse, fair, and collaborative supply chain, particularly around prompt payment practices and cyber security measures. 

Fighting climate change 

Policy Outcome: Effective stewardship of the environment 

This is your chance to show that your delivery of the contract will mitigate negative impacts to the environment. For contracts over £5 million, a Carbon Reduction Plan will be required.  

And remember, the Social Value Model stipulates that environmental Social Value must be the result of new interventions which wouldn't have happened anyway as a result of existing schemes. 

Equal opportunity 

Policy Outcome: Reduce the disability employment gap 

There are plenty of ways to support people with disabilities in the workplace – but don’t forget to make it relevant to the contract itself. For instance, when recruiting for the contract, how will you ensure that the process is inclusive for disabled workers at all stages?  

Policy Outcome: Tackle workforce inequality  

This is where you can cover Equality, Diversity and Inclusion initiatives, and highlight the efforts you will take to combat modern slavery, as well as unequal pay and progression opportunities. 

Wellbeing 

Policy Outcome: Improve health and wellbeing 

Some of the basic points to cover here include good working conditions, supportive management, and employee wellbeing. If staff on the contract might be exposed to particularly difficult environments, this will be important in helping your bid stand out.   

Policy Outcome: Improve community integration 

The government is keen to see that you are treating local communities as partners and stakeholders in the delivery of the contract. Be sure to detail the ways that you will engage with local people and community groups to co-design your plan, giving them a voice in the way the work is ultimately done.  

Breakdown: PPN 002 & the updated Social Value Model

The new Social Value Model introduced in February 2025 applies to “above threshold” contracts for in-scope organisation, which the Procurement Act 2023 defines as £139,688 including VAT.

It largely maps to the old Model, but with some key differences. The COVID-19 recovery Theme has unsurprisingly been removed, and there’s a stronger emphasis on areas like:

• Community cohesion
• Fair work and pay
• Developing talent pipelines and removing barriers to work
• Tackling domestic violence

Below you can see the structure of the updated Social Value Model:

How the Outcomes have changed from the old to the new Social Value Model

When using the new Social Value Model, central government procurers will follow three steps:

1. Select an Outcome that relates to the contract and is proportionate and non-discriminatory. 
2. Add the question to the tender document
3. Insert the corresponding Model Award Criteria and sub criteria

Note that, in a shift from the original Model, in Step 1 authorities are now encouraged to focus on only one Outcome except in the biggest contracts. Also, Steps 2 and 3 can both be refined to suit the market and contract based on market engagement.

Let’s look a bit more closely at some of the activities and areas covered in each Outcome:

Mission 1: Kickstart economic growth

Outcome: Fair work

This Outcome is an important one, representing five separate MACs. It focuses on creating and sustaining high-quality employment opportunities while ensuring fair working conditions and pay.

Bidders can score points by demonstrating how they intend to:

• Provide stable and meaningful jobs
• Promote fair working conditions and pay
• Support employees' career progression through skills development

This is also where steps to identify and mitigate modern slavery come into play.

Outcome: Skills for growth

Outcome 2 focuses on supporting the development of the workforce through learning and training opportunities relevant to the contract. This might mean:

• Creating apprenticeships, internships, and T Level industry placements
• Contributing to curriculum development in schools
• Other programs leading to industry-recognised qualifications

Showing that you understand sector-specific employment and training challenges, like demographic shifts, regional skills gaps, and opportunities in high-growth industries, is key.

Outcome: Resilient, innovative, and flexible supply chains

For this outcome, bidders can score points by outlining their efforts to open subcontracting opportunities to a wide range of businesses. It’s also effective to demonstrate how you will work collaboratively with local communities and anchor institutions to design and deliver the contract.

Mission 2: Make Britain a clean energy superpower

Outcome: Sustainable procurement practices

Procurement is a powerful tool for driving sustainability. This Outcome is an opportunity for suppliers to show how they will embed environmental benefits, whether by cutting greenhouse gas emissions, adopting clean energy, or integrating green technologies.

This shouldn’t stop at your own operations either – you can also work with your customers and supply chain partners to create positive environmental impact.

Mission 3: Take back our streets

Outcome: Support the reduction in crime

Authorities may look for suppliers to contribute to crime reduction efforts - particularly in tackling domestic abuse within the workforce and supply chain.

Domestic abuse is a bigger problem than many realise - according to ONS figures 20% of people aged 16 and over had experienced domestic abuse since the age of 16. Accordingly, it's a big focus in the new Model and something that will challenge suppliers to expand their perception of what is 'relevant' as well as build new capabilities.  

Think about outlining:

• Partnerships with charities and community organisations
• Safeguarding measures
• Training initiatives to raise awareness

Showing how you will engage staff, suppliers, and customers in promoting safety and supporting those affected will also strengthen your proposal.

Mission 4: Break down barriers to opportunity

Outcome: Employment and training for those who face barriers to employment

Creating employment and training opportunities for underrepresented groups is a key means for suppliers to deliver Social Value.

This might mean committing to hiring individuals from deprived areas, increasing representation of disabled people, or tackling inequality in pay and skills. Your tactics could include targeted recruitment efforts, inclusive workplace policies, and training pathways.

Outcome: Creating a pipeline of opportunities for the contract workforce

Helping underrepresented groups (like NEETs, care leavers, disabled people, and prison leavers) overcome barriers to employment is a massive government priority.

As a supplier, your plans to do this could include structured development programs like apprenticeships, T Level placements, and supported internships with clear progression routes. However, a key factor is showing your understanding of the challenges you are addressing.

Be sure to mention any planned outreach efforts, like partnering with community groups, advertising roles locally, and engaging with schools, and setting measurable targets.

Mission 5: Build an NHS fit for the future

Outcome: Increasing productivity through physical and mental wellbeing

If the tender asks bidders to explain how they will help tackle mental and physical health, you can consider committing to:

• Conducting mental health initiatives
• Improving access to occupational health services
• Tackling health inequalities

Specific plans, for instance around inclusive recruitment, digital access improvements, and targeted wellbeing programs, will give your proposal added robustness.

How to win work under the Social Value Model 

The new Social Value Model is accompanied by updated Government guidance on the principles underpinning bid evaluations. They specify that a bid should:

• Be specific, measurable, and timebound, describing how the commitment meets the award criteria
• Nominate (or explains how you will nominate) the relevant cohort and include a plan to engage them with a tailored offer
• Describe how you will influence relevant stakeholders (staff, suppliers, etc) to deliver the Outcome
• Feature a timed project plan (including timelines, proposed metrics, and processes) with plans to publish commitments and performance

Adhering to these guidelines will give you a good starting point.

However, from helping numerous strategic suppliers secure government contracts, we have seen that the following considerations make for a truly robust bid:

Show you understand what the Policy Outcome means for this contract 

As the bidder, your job is to demonstrate that you understand the procurer’s Social Value goals, and have thought about how your specific organisation and this specific contract can achieve them. 

Ask yourself:  

• Have you addressed the buyer’s questions and checked their scoring criteria? 

• Is your bid aligned to the buyer’s Social Value priorities in relation to your industry? 

• Are you showcasing your research into local needs and your capability to deliver through the contract?  

This is your chance to explain why your proposal meets the procurer’s needs, with the target Outcome(s) at the centre of your bid. 

Example scenario: MAC 2a. Sub criteria - Educational attainment  

Let’s say a bidder for an engineering contract wants to make commitments against: 

2a. Learning and skills development opportunities relevant to the contract to address skills gaps.

Specifically, the bidder wants to make a commitment against the following sub criteria:

Support for educational attainment relevant to the contract, including training schemes that address skills gaps and result in recognised qualifications.  

The bidder starts by highlighting a specific skills issue relating to mechanical engineering – a key workforce capability that will be required to deliver the contract.  

They then note a shortage of local students taking up mechanical engineering apprenticeships at the local college, and identify that local schools are struggling with STEM engagement and achieving lower grades than the regional average, discovered through a Local Needs Analysis.  

This opens an opportunity for the bidder to help more young people break into the industry and tackle the skills gap by connecting local students with the college’s apprenticeship programme, thus boosting STEM engagement. 

Articulate to the buyer how you will impact the Policy Outcome 

To win central government contracts, you need to persuade the procurer that you want to make a measurable difference in terms of economic, environmental, and social impacts. You also need to show that your commitments are realistic for the contract size and your own capabilities as an organisation.  

Consider the following questions:  

• Do you have a qualitative method statement? 

• Is your offer genuine, relevant, and proportionate? 

• Are your commitments accurately attributed and offering additional value? 

Example scenario: MAC 2a. Sub criteria - Educational attainment  

Let’s return to our example of a bidder for an engineering contract making commitments against MAC 2a.  

Having identified a need to improve local educational attainment in STEM, the bidder connects with local school engagement partners, who confirm a need for more careers talks in three of their target schools.

The bidder then commits to delivering 30 hours of career talks in schools. This amount is realistic and achievable given the duration of and number of staff that will work on the contract.  

The talks will be shaped with the college and a STEM charity, with the aim of increasing students’ aspirations and awareness of careers in engineering. Moreover, the bidder commits to supporting an individual from the identified schools into a contract apprenticeship.   

Give confidence that your offer is robust, considered and dependable 

Of course, demonstrating Social Value is about real impact — not empty words. Procurers need to feel confident that you are capable of delivering on your Social Value goals. Persuading them that your organisation is the right fit is about highlighting your previous expertise and demonstrating that you understand the specific challenges of their project.  

Here are three key questions to consider: 

• Are you demonstrating past experience of Social Value delivery?  

• Have you identified potential Social Value delivery partners?  

• Have you explained how you will track and report progress during contract management? 

Example scenario: MAC 2a. Sub criteria - Educational attainment 

Finally, our bidder instils confidence in the buyer by detailing its track record of delivering impactful school engagement sessions in the past, including leveraging the expertise of its STEM charity partner.   

The bidder also commits to providing quarterly progress updates, providing quantitative data and qualitative case studies from the schools involved to demonstrate the initiative’s impact.  

Social Value Portal’s keys to a winning bid

✅ Extra resource: Download our Social Value Model bid checklist 

Why you should be measuring Social Value 

As a supplier to central government, actively measuring your Social Value at both commitment at delivery stage will unlock huge benefits: 

PPN 002 also ups the ante when it comes to tracking delivery. It requires authorities to:

• Contractualise suppliers’ Social Value proposals
• Potentially make Social Value commitments into KPIs, especially in more ‘mature’ markets
• Use the Model’s standard reporting metrics – unless a suitable one doesn’t exist, in which case widely-used industry metrics can suffice

However, the Model remains a procurement tool – not a tool for measuring Social Value impact and positive change. 

That’s where the Social Value TOM System™ comes in. Underpinned by robust data and eight years of mass adoption, it’s based on official government data sources, plus insights from 1,000+ research papers reviewed by our in-house economists and data analysts.

The TOM System provides two distinct ways to measure Social Value:  

• A financial equivalent (Social Value pounds, or SV£) 

• Units (i.e. activities delivered, such as the number of weeks of volunteering) 

It's fully compatible with the Social Value Model, with both pinpointing the area of Social Value you want to focus on, the change you want to create, and the actions you will take.

Together, they give you the clearest possible picture of Social Value, incorporating both qualitative insights and quantitative data.

Lulu Hobbs, Social Impact Manager at government supplier Serco, explains why they use the Social Value TOM System

As a business-to-government organisation, all of our bidding, all of our growth and our development, is completely aligned to the Social Value Model. So the fact that the Social Value TOM System™ and the Social Value Model, back through to the Sustainable Development Goals, makes our job a lot easier.

Lulu Hobbs, Social Impact Manager, Serco

💡 Learn more: How the TOM System™ elevates Social Value measurement 

Get started delivering Social Value

As an existing or future supplier to central government, you have all the tools at your fingertips to deliver substantial Social Value impact.

Check out our full Social Value Model resource hub for all the guidance you need.