The Social Value Model and PPN 06/20: The complete supplier’s 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 and the Social Value Model (including PPN 06/20) 

• Share our top tips on winning work under the SVM 

• Explain why you should measure Social Value 

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

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 the introduction of the Social Value Model and PPN 06/20…  

Understanding PPN 06/20 and the Social Value Model 

In June 2020, the Cabinet Office introduced the UK Social Value Model. For the first time, it embedded Social Value into the procurement processes of all central government departments, their executive agencies, and non-departmental public bodies, representing 400+ different organisations. 

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 provides comprehensive guidance on evaluating Social Value in central government contracts. There are five Social Value Themes and eight Policy Outcomes outlined in PPN 06/20:

The scale of opportunity here is substantial, with annual central government procurement spend standing at approximately £90 billion in 2021-22.  

That said, it’s important to understand what government buyers are really looking for: contract-specific commitments to deliver additional (beyond core contract requirements) public benefits in line with the above Policy Outcomes. 

💡 Learn more: For a detailed breakdown of these Themes and Outcomes, check out this Social Value Model quick reference table. 

Source: Government Commercial Function Strategy 2021-2025 

The Social Value Model’s Themes and Policy Outcomes 

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 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 relate to the additional improvements you will make to the area’s environmental wellbeing. It cannot relate to the assessment and management of the environmental impact of the contract’s core elements; this should feature in the core tender, rather than the Social Value element. 

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 your efforts 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.  

💡 Learn more: While the Social Value Model was designed by a previous government, you’ll notice that the Themes and Policy Outcomes are very relevant to the new Labour government’s stated Five Missions. 

How to win work under the Social Value Model 

Now that we have discussed the background of Social Value and PPN 06/20, here are our best practices for winning work under the Social Value Model: 

Show you understand what the Policy Outcome means for this contract 

Under the Social Value Model, central government procurers must choose from a “menu” of Themes, Policy Outcomes, and Model Award Criteria they want to focus on, as laid out in the quick reference table we shared in the previous section.   

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 the scoring matrix? 

• 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 Policy Outcome(s) at the centre of your bid. 

Example scenario: MAC 2.3 

Let’s say a bidder for an engineering contract wants to make commitments against MAC 2.3: Supporting educational attainment relevant to the contract.  

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 identifies 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 and programme. 

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 2.3 

Let’s return to our example of a bidder for an engineering contract making commitments against MAC 2.3.  

Having identified a need to improve local educational attainment in STEM, the bidder 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. 

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 2.3 

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.  

💡 Learn more: How to win work and deliver results under the Social Value Model 

✅ Extra resource: Download our Social Value Model bid checklist! 

The Social Value Model and the Social Value TOM System 

The Social Value Model may have created a pathway for integrating Social Value into central government procurement, but it left a critical gap: how can suppliers go from making commitments to providing robust, consistent measurement and reporting of delivery?  

Fortunately, there is a solution — the Social Value TOM System™.  

The TOM System, underpinned by robust data and eight years of mass adoption, is based on 17 official government data sources — plus insights from 1,000+ research papers reviewed by our in-house economists and data analysts. Working alongside the Social Value Model, it translates supplier commitments into tangible, reportable outcomes.  

It 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) 
  

The Social Value TOM System™ is fully compatible with the Social Value Model (in fact, the structure of the SVM is based on the TOM System™). Both the Social Value Model and the TOM System™ pinpoint:   

• The area of Social Value you want to focus on 

• The change you want to create 

• The actions you take 
  

The Measures of the TOM System align to the Social Value Model’s MACs. They also align to its Standard Reporting Metrics, while providing additional reporting options.  

Combining the Social Value Model and the TOM System gives you the clearest possible picture of Social Value, incorporating both qualitative insights and quantitative data.   

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

Why you should track your Social Value 

We strongly recommend measuring your Social Value, both in terms of commitments at tender stage and actual delivery.  

Doing so offers huge benefits for both central government buyers and suppliers across both the bid and delivery stages: 

The next level of Social Value Model reporting 

Our platform eliminates the data fragmentation that’s so common in Social Value measurement and streamlines both bidding and reporting for central government suppliers.  

Just select your Model Award Criteria, and our platform will automatically map them to the corresponding TOM System Measures. This simplifies the process of creating competitive bids and delivering on your commitments, with both qualitative and quantitative measurement across the full contract lifecycle.  

Plus, Social Value Portal includes standard validation for every customer, ensuring your reported outcomes are credible and independently verified.  

With all your Social Value metrics consolidated in one place – combining the TOM System and the Social Value Model – managing and reporting on Social Value has never been easier or more efficient. 

Let’s start 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. Now is the time start making a difference—and Social Value Portal is here to help. Check out our full Social Value Model resource hub for all the guidance you need.