The Cabinet Office has published detailed guidance on how the new Social Value Model under PPN 026 should be applied in central government procurement. Issued on 28 October 2026, the guidance provides further detail on how social value questions should be structured, how suppliers' responses will be evaluated and how commitments will be managed after contract award.
The update is particularly relevant to suppliers preparing for the model's implementation on 1 January 2027. While the headline weightings and eligibility thresholds remain unchanged, the new document gives bid teams a much clearer picture of what a successful social value response needs to demonstrate.
What does the new PPN 026 guidance cover?
The Cabinet Office guidance follows four stages of the procurement lifecycle: Plan, Define, Procure and Manage. It explains how contracting authorities should select relevant criteria, consult the market, evaluate submissions and monitor delivery. It also includes the complete Social Value Model, detailed sub-criteria, standard reporting metrics, an example scoring methodology and a template letter for suppliers proposing to support Community Programmes.
The guidance builds on the PPN 026 Social Value Model announced in August. The model remains focused on two outcomes, Good Jobs and Skills, supported by six award criteria covering employment, fair working conditions, fair pay, training, progression and talent development.
Key requirements
For qualifying procurements undertaken by in-scope central government organisations, the main requirements remain:
Contract value | Minimum social value weighting |
|---|---|
£1 million to below £5 million | 10% |
£5 million and above | 20% |
Contract values include VAT, and procurements must also meet the relevant public contract threshold. Qualifying contracts worth £5 million or more require at least one additional social value KPI. The policy applies to covered procurements commencing on or after 1 January 2027. It does not automatically apply to local authorities, NHS bodies or other public sector organisations outside its scope.
Social value tender questions: Greater clarity
One of the most useful additions is a model question that gives suppliers greater clarity about the information buyers may request. Rather than asking bidders simply to describe their social value activities, the guidance calls for specific, measurable and time-bound commitments linked to the selected outcome.
Suppliers proposing their own activities will need to explain how their commitments meet the relevant award criteria, identify the people or communities who will benefit and describe how those groups will be reached and supported. All suppliers must also provide an implementation method explaining the quantities, milestones and deliverables they are committing to, alongside arrangements for supporting participants and reporting performance.
For bid teams, this reinforces the importance of planning before writing. General statements about supporting communities or investing in employees will need to become more precise, with clear delivery methods and evidence.
Quality over quantity
The guidance makes an important distinction between the quantity of social value promised and the quality of the proposed delivery approach. As a general rule, contracting authorities should evaluate the quality of the supplier's method statement and implementation plan, rather than award higher scores simply because a bidder promises more jobs, apprenticeships or training hours.
Quantified commitments still matter. They need to be included in the contract and monitored after award, but the standard evaluation approach focuses on whether the supplier can deliver the selected outcomes credibly.
Annex A provides some exceptions, including circumstances where buyers may evaluate the scale of job creation or apprenticeships on contracts worth £5 million or more. These additional measures require particular care to avoid disproportionate or discriminatory requirements.
The practical implication is that suppliers shouldn't assume the largest numerical promise will produce the strongest score. A well-designed commitment supported by a realistic implementation plan may be more competitive than an ambitious target with limited evidence or delivery capacity.
Community programmes: Another route to delivery
The guidance introduces a more detailed approach to Community Programmes, which suppliers may be able to support instead of developing an entirely separate social value initiative. Where a buyer identifies relevant Community Programmes, bidders can propose to support one or more of them. The commitment must be supported by a dated letter confirming the proposed additional support, subject to contract award. The guidance includes a template letter and an example evaluation approach that recognises properly evidenced Community Programme commitments.
Importantly, participation is optional. Suppliers aren't required to use a Community Programme to deliver social value, and the separate list of Community Programmes is still due to be published.
For businesses with limited experience developing community initiatives, this could eventually provide a more structured route to delivery. However, suppliers will still need to demonstrate how their commitments will be implemented, monitored and completed.
What does the guidance say about frameworks?
Framework suppliers should pay particular attention to the clarification on framework evaluations and call-off contracts.
Although PPN 026 applies to the establishment of relevant frameworks, the guidance says that contracting authorities do not need to apply the full minimum social value percentage weighting when awarding the framework itself. Instead, frameworks should be designed to allow relevant social value criteria to be assessed appropriately when individual call-off contracts are awarded. This matters because the exact contract location, scope and workforce requirements may not be known when the framework is established.
For older frameworks, the guidance also explains that the previous Social Value Model may continue to be relevant, depending on when the framework was procured. Suppliers should therefore check the evaluation arrangements for each framework and call-off rather than assuming every opportunity will use identical social value questions.
Measuring social value commitments after award
The guidance places substantial emphasis on how social value is managed once a supplier wins the contract. Successful bidders' commitments should be incorporated into the contract, with suitable reporting metrics agreed between the supplier and contracting authority.
For contracts worth £5 million or more, at least one additional social value KPI must be established. The guidance explains how these KPIs should use measurable targets and reported performance data.
Contract performance notices must generally be published at least every 12 months for qualifying contracts of this value, while central government departments are also expected to submit quarterly social value information to the Cabinet Office using the standard reporting metrics. While the quarterly reporting requirement is directed at government departments, suppliers will need to provide the underlying evidence necessary for contract monitoring.
Serious failures to deliver contractual commitments may affect a supplier's eligibility for future procurements where the relevant legal conditions are met.
What should suppliers do before January 2027?
With the detailed guidance now available, businesses can take more targeted steps to prepare for the new model.
- Review your social value evidence: Map existing policies, case studies and results against the six award criteria and the newly published sub-criteria. Identify where you can demonstrate credible outcomes and where further evidence is needed.
- Develop an implementation method: Prepare to explain who will benefit, how participants will be identified and supported, who will deliver each activity and how progress will be measured.
- Review your partnerships: Consider whether existing relationships with colleges, employment providers, charities or community organisations could support relevant commitments. Monitor the promised List of Community Programmes when it becomes available.
- Involve commercial and delivery teams: Agree responsibilities, costs and data collection arrangements before commitments are included in a live tender.
- Check the procurement route: Framework call-offs, pre-2027 procurements and buyers outside the policy's scope may follow different arrangements. The tender documents remain the definitive source of requirements for each opportunity.
Preparing stronger social value responses
The publication of the guidance gives suppliers greater certainty about how PPN 026 is intended to work in practice. It also reinforces that a successful social value response requires more than an attractive promise. Suppliers must be able to explain how commitments relate to the contract, how they will be delivered and how their impact will be demonstrated after award.
Thornton & Lowe helps organisations interpret social value requirements, develop credible commitments and prepare stronger tender responses through our social value bid writing support. For further practical guidance, our free Social Value Report explores the process from tender planning to contract delivery, with readiness checks, planning tools and implementation guidance.
If you're preparing for the implementation of PPN 026, we can help you to get ready. Contact us today to discuss how to strengthen your social value approach.
