What is Social Value?

Both businesses and VCFSE organisations entering into the procurement process to get contracts to supply public sector organisations need to deliver Social Value. 

Business-VCFSE engagement and partnerships can support delivery of Social Value. 

What is Social Value? 

When purchasing goods and services or providing grants, buyers/funders often look for value for money  (a combination of quality and price throughout the life of a contract) and quality (meeting the end needs of service users). 

Buyers, funders, policy advisors and decision-makers, are now also increasingly looking for delivery of Social Value. 

The UK government describes Social Value derived from procurement as “the positive legacy created through the performance of a contract”.  

There are three categories of Social Value: 

• Social (e.g. activities that promote a united or cohesive community) 

• Environmental (e.g. efforts to assist the community in reducing waste, pollution or CO2 emissions; improving biodiversity) 

• Economic (e.g. training, employment or apprenticeship opportunities for disadvantaged groups) 

(Source: https://www.gov.uk/guidance/vcses-a-guide-to-working-with-government) 

Some examples of Social Value could include: 

• Social – Supporting volunteer mental health as part of a wider volunteering programme 

• Environmental – Reducing energy use in the building where you deliver your services 

• Economic – Being a Living Wage Employer – supporting employees out of poverty  
  
  

What is the Social Value Act? 

The Public Services (Social Value) Act 2012 came into force on 31 January 2013. 

This requires commissioners/ procurers/ purchasers of public services to think about how they can also secure wider social, economic and environmental benefits. 

Before they start procurement processes, commissioners need to think about whether the services they are going to buy (or goods/ works where there is a service element), or the way they will buy them, could secure these benefits for their area or stakeholders, and consider this in contract design. These must be over and above core deliverables.