Last week, the Government released the new National Procurement Policy Statement (NPPS), which contracting authorities must have regard to when exercising their procurement functions, as required by Section 13 of the Procurement Act 2023.
With a broader overhaul of UK procurement law coming, the Statement will play a key role in ensuring that every public pound spent delivers tangible benefits to communities.
So, without further ado, here are my thoughts on the NPPS – what it gets right and what should come next.
💡 Read: The new National Procurement Policy Statement
One thing is immediately clear – public procurement is no longer just about buying.
It’s now a strategic tool for achieving the Government’s ‘5 Missions’, which focus on delivering social and economic value across the commercial lifecycle while benefiting local communities.
💡 Read more: Aligning your business to the Government’s 5 Missions
Whilst the 5 Missions provide an overarching strategy, there is a growing recognition that procurement must reflect local needs.
Encouragingly, the NPPS includes a requirement for contracting authorities to secure social and economic value to support local and regional growth.
Many local authorities are already leading the way on this. A great example is our customer London Borough of Waltham Forest, which recently activated its Dynamic Data Hub to track and respond to local needs.
💡 Explore: Creating targeted Social Value with Local Needs Analysis
As expected, value for money remains top of the agenda in public procurement.
However, contracting authorities must also have regard to the importance of delivering wider social and environmental benefits. The NPPS also re-emphasises the primacy of value delivered over the long term, with a focus on delivering sustainable outcomes.
In other words, public procurement should secure positive, lasting community impact – not just the lowest bid.
Securing committed Social Value during the procurement process is one thing – but what transforms lives and builds trust with communities is delivery.
The NPPS contains a clear call to action for contracting authorities to build their contract management capabilities, and make sure that what is promised is actually delivered.
At the Social Value Conference, Rebecca Rees, Head of Public Procurement at Trowers & Hamlins, made this point very clear:
If you are asking for anything at the procurement stage, and you are turning it into a differentiator, put it in your contract terms and make it stick through the commercial lifecycle... If the only reason someone has won a contract is on the basis of its Social Value response, then make sure that they can lose the contract for failure to deliver that, or reimburse you.
Rebecca Rees, Head of Public Procurement at Trowers & Hamlins
🎥 Watch: The Procurement Act – Making it work for all sectors of society.
The NPPS ups the ante with new requirements for public buyers in three key areas:
The NPPS frequently highlights the importance of collaboration and innovation, encouraging:
Social Value is often associated with creation of local jobs.
However, the NPPS encourages buyers and suppliers to go further by committing to providing high quality jobs, safe and healthy working conditions, fair pay, and opportunity and progression pathways for workers.
While the NPPS is certainly a step in the right direction, it only applies to contracts that meet the relevant thresholds (which differ by contract type and procurer). This is also true of the Social Value Act 2012.
However, Social Value should not be limited by thresholds. Public funds should be spent in a way that benefits the public – and contracts of all sizes can contribute meaningfully to this objective.
Alongside the new NPPS, the government has taken some other significant steps:
The Social Value Model (first introduced in 2020) has been updated, with the new version to become mandatory on 1st October 2025.
It is now built around eight ‘Outcomes’, each featuring revised Model Award Criteria, sub-criteria, and standard reporting metrics:
The revised Model aligns to the Government’s 5 Missions. The COVID-19 recovery Theme has been removed, there’s a bigger focus on community cohesion, carers, and the development of talent pipelines, and authorities have been empowered to amend the criteria on the basis of market engagement.
🗎 Read: PPN002 – Social Value Model
The government also requires authorities to set targets for spend with both small and medium-sized enterprises (SMEs), and voluntary, community and social enterprises (VCSEs)
In line with the Plan for Small Business, all central government departments (including executive agencies and non-departmental public bodies) must:
In addition, the Government has specified that SME spend targets must be signed off by the department’s relevant Minister – who in turn should confirm these targets with the Parliamentary Secretary by 31 May 2025.
Strong stuff!
💡 Read: PPN001 – SME and VCSE procurement spend targets
The Public Services (Social Value Act) 2012 has also been updated to align with the Procurement Act 2023 and the National Procurement Policy Statement.
🗎 Read: PPN003 – The updated Social Value Act 2012
The last week has seen big changes to public procurement that will help shape the future of Social Value.
Our specialists work with contracting authorities and key suppliers across the country. If you want to understand how the Procurement Act could impact your Social Value journey, get in touch.