Social value in tenders: PPN 002 and PPN 026 explained
By the companypolicies.ai team, published by Spire Trade Advisors Ltd · Published · Last updated · 7 min read
In short
Under PPN 002, central government departments, agencies and NDPBs must give social value a minimum 10% weighting in above-threshold procurements commenced on or after 1 October 2025. PPN 026 introduces a new Social Value Model for central government procurements of £1m or more commenced on or after 1 January 2027.
PPN 002: the current rules
- Applies to central government departments, executive agencies and non-departmental public bodies, for covered (above-threshold) procurements under the Procurement Act 2023.
- Mandatory for procurements commenced on or after 1 October 2025.
- Minimum 10% of the total score for social value (or 10% of the quality score where price-per-quality-point methods are used).
- Commitments made in bids must be reflected in the contract as terms or KPIs.
- Other public bodies, such as local authorities, may choose to apply the approach, and must still consider social value under the Public Services (Social Value) Act 2012 where it applies.
PPN 026: what changes from 1 January 2027
- A new Social Value Model built around two outcomes: good jobs and skills.
- Applies to central government procurements valued at £1m or more (including VAT) commenced on or after 1 January 2027.
- Minimum weighting of 10% for contracts from £1m to under £5m, and 20% for contracts of £5m and above.
- Contracts of £5m and above must include at least one social value KPI, in addition to the KPIs required under section 52 of the Procurement Act 2023.
How to write strong social value answers
- Make commitments specific to the contract (local hires, apprenticeships, supply-chain spend with SMEs) rather than generic statements.
- Quantify what you will deliver and how you will measure and report it.
- Only commit to what you can evidence. Commitments become contractual.
- Back your answers with a social value policy, employee wellbeing policy and KPI reporting procedure.
Frequently asked questions
What is the minimum social value weighting?
Under PPN 002, at least 10% of the total score in in-scope central government procurements. Under PPN 026, for central government procurements of £1m or more commenced from 1 January 2027, the minimum is 10% for contracts from £1m to under £5m and 20% for £5m and above.
Does PPN 002 apply to local councils?
Not automatically. It applies to central government departments, executive agencies and non-departmental public bodies. Other public bodies may choose to follow it and must still consider social value where the Public Services (Social Value) Act 2012 applies.
Do I need a social value policy?
It is not a legal requirement, but a written social value policy gives evaluators evidence behind your commitments. Only promise what you can deliver and measure, because commitments become contract terms or KPIs.
Related guides
Sources
- PPN 002: Taking account of social value in the award of contracts (GOV.UK)
- PPN 026: The Social Value Model (GOV.UK)
- Public Services (Social Value) Act 2012 (legislation.gov.uk)
- Procurement Act 2023, s.52 (legislation.gov.uk)
Written and reviewed by the companypolicies.ai team at Spire Trade Advisors Ltd, using the official sources listed above; last checked 2 October 2026. General information, not legal advice. Procurement rules and guidance change, and individual tenders set their own requirements; always check the procurement documents and current GOV.UK guidance.