New UK public sector social value rules in play from October 1st

From the 1st October 2025, the UK’s approach to public procurement will undergo a step change with the introduction of Procurement Policy Note (PPN) 002, which updates the Social Value Model (SVM) first launched in 2020.

This revision is set against the backdrop of the Procurement Act 2023 and the new National Procurement Policy Statement (NPPS), both of which require contracting authorities to embed broader societal outcomes in their procurement decisions. Since the 24th of February 2025, the renewed Social Value Model has been in a transitionary period.

Under PPN 002, similar to PPN 06/20 which came into play in 2021, social value must carry a minimum weighting of 10% in all public sector tenders. Authorities can apply a higher weighting where relevant and proportionate; however, social value must now always be a scored and evaluated criterion linked to measurable outcomes.

Together, the policy reforms mark a decisive shift away from procurement as a purely cost-driven exercise. Instead, public contracts are becoming a lever for achieving broader social outcomes, striking a balance between economic efficiency and long-term community benefits. 

For suppliers, the implications are clear that social value is now of central importance to buyers, rather than a nice-to-have. When approaching opportunities and crafting bids, commitments must be specific, measurable, and backed by evidence, with delivery monitored throughout the life of the contract, not just at the time of award.

For more information on how Stotles uses the large UK public sector procurement dataset and AI to support suppliers in crafting winning bids, click here to speak with a member of our team.

What the data shows

To assess how these policy shifts are translating into practice, we analysed published contract awards that referenced “Social Value” in their titles or descriptions from Q4 2020 to Q3 2025. The trend offers valuable insight into how buyers are embedding these priorities.

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After the launch of the Social Value Model (2020), contract references rose sharply through 2021 and early 2022. This early momentum coincided with PPN 06/20, which, from January 2021, required the Central Government to give at least 10% weighting to social value in tenders. 

In February 2022, the Levelling Up White Paper was published, which positioned social value as a core tool for local authorities under pressure to demonstrate tangible community benefits. 

By Q1 2023, this was no longer new guidance but a mandatory and embedded requirement, and contracting authorities were beginning to mature in their application of it.

From 2024 onward, mentions of social value increased steadily. This growth mirrors the build-up to the launch of the Procurement Act in February 2025, with buyers aware of these expectations in anticipation of the new mandate.

Buyers leading the charge on social value

Breaking the data down by buyer type gives further clarity on where social value is taking root most strongly:

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Local authorities are consistently at the forefront of efforts. Their community-facing mandate means they are under pressure to demonstrate tangible local impact. This is reflected in the steady growth of tenders referencing social value, making local government the leading adopter.

Similarly, regional healthcare buyers, including Integrated Care Boards (ICBs) and NHS Trusts, are increasingly embedding social value into their procurement. Since 2023, mentions of healthcare have accelerated sharply, reflecting the NHS’s drive to link procurement with broader social and health outcomes. 

Central Government remains a leader, with mentions of social value appearing regularly. Surprisingly, the Ministry of Defence (MOD) has emerged as a notable leader among central departments, frequently incorporating social value into its tender notices.

Final thoughts

With the Procurement Act and NPPS reinforcing this direction, suppliers who fail to adapt risk being left behind.

Stotles’ AI bid studio dissects tender documents to identify requirements and automatically qualify or disqualify opportunities your company does not meet. When social value is now a mandatory part of scoring, there is no point in chasing tenders where you cannot deliver on these expectations. It wastes time, resources and money, and it is frustrating to keep losing.

With a bid or no-bid report, Stotles AI can quickly determine whether you have the proper credentials to compete, drawing directly on your own documents, such as case studies, policies, and company details.

Beyond qualification, it also helps you draft responses that showcase your social value commitments in line with the latest requirements, giving you a strong starting point for building compliant and compelling bids.

The result is a clear, evidence-based recommendation on whether to pursue an opportunity, and, if you do, tailored draft responses that put social value at the heart of your bid strategy. This saves your team hours of manual review and increases your chances of success in an environment where social value is now a baseline requirement.

For more information on how Stotles uses the large UK public sector procurement dataset and AI to support suppliers in crafting winning bids, click here to speak with a member of our team.

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