PPN 026: The New Social Value Model for Bidders

On 5 August 2026, the Cabinet Office published Procurement Policy Note 026: The Social Value Model, replacing the broad, multi-theme social value approach bidders have worked with for years with a much narrower model focused on two things: jobs and skills. If you bid for central government contracts, this changes what you’ll be asked to write — and how it will be scored — from 1 January 2027.

This article covers what PPN 026 actually says, who it applies to, the new mandatory weightings, and the practical steps to take before it starts affecting live procurements.

What PPN 026 Changes

The PPN redefines social value for central government contracts as “taking account of how a supplier will work for our communities to provide good British jobs, skills and opportunities in every postcode” (PPN 026, paragraph 2). That’s a deliberate narrowing. Previous social value guidance spanned themes including environmental sustainability, equal opportunity, and wellbeing. PPN 026 strips the model back to two outcomes — Good Jobs and Skills — with six award criteria between them (PPN 026, Annex A and Notes).

The stated aim, per the PPN’s background section, is to “leverage government expenditure to benefit communities” and focus specifically on “good jobs, skills, and opportunities for those facing barriers to employment within local communities” (PPN 026, paragraph 19).

Who It Applies To, and When

This matters for scoping your pipeline correctly:

• In scope: central government departments, their executive agencies, and non-departmental public bodies — referred to in the PPN as “in-scope organisations” (paragraph 4).
• Not mandatory for: other public sector contracting authorities (local authorities, NHS bodies, devolved administrations), though the PPN says they “may wish to adopt” the same approach voluntarily (paragraph 4). If you bid mainly to councils or the NHS, don’t assume this applies yet — check whether your buyer has chosen to adopt it.
• Contract threshold: covered procurements valued at £1 million total contract value (inclusive of VAT) or above, commenced under the Procurement Act 2023. Private utilities contracts are excluded (paragraph 5).
• Timing: applies to procurements commenced on or after 1 January 2027. A procurement “is considered to have commenced at the point at which a tender notice is published” (paragraph 10). For procurements already under way under the Procurement Act 2023, authorities are encouraged — but not required — to transition early (paragraph 11).
• Frameworks: for frameworks, social value must be assessed at both framework and call-off stage, per forthcoming guidance (paragraph 6).

Full practitioner guidance, including sub-criteria and a “List of Community Programmes” resource for bidders, is due in autumn 2026 (paragraphs 6 and 12) — worth watching for if you bid regularly into central government.

The Two Outcomes and Six Criteria

Annex A of the PPN sets out the model in full. It’s worth knowing the structure before you see it appear in a tender:

Outcome 1: Good Jobs — fair pay and good working conditions, helping people get a job, stay in work, and progress.

• 1a. Create and/or retain high-quality jobs — points for creating or retaining jobs in the relevant area, adapting recruitment to help communities access and retain work, and creating jobs in high-growth sectors.
• 1b. Fair working conditions — points for going beyond the statutory minimum and supporting staff who face barriers to staying in work, including flexible working and trade union access.
• 1c. Fair pay — points for going beyond the statutory minimum wage and offering progressive pay and retention policies.

Outcome 2: Skills — addressing skills shortages and opportunities for people facing barriers to employment.

• 2a. Training/Retraining — points for addressing known skills shortages and co-designing training with the relevant community, such as apprenticeships or work placements.
• 2b. In-work progression — points for helping existing staff move into higher-paid roles through further training.
• 2c. Talent pipeline — points for building a pipeline into future roles, particularly for people in areas of multiple deprivation.

Target cohorts flagged for future guidance include people not in employment, education or training (NEETs), those transitioning from education into work, people with long-term health conditions or disabilities, and care leavers (PPN 026, Notes).

The New Mandatory Weightings

This is the change with the most direct effect on your score:

Contract value	Minimum social value weighting
£1m up to £5m	10% of the total score available to tenders
£5m or above	20% of the total score available to tenders

Where a buyer uses an absolute scoring methodology — Price per Quality Point or a Value for Money index — the 10% or 20% applies to the non-price (quality) score rather than the overall total (paragraph 13). Contracting authorities must still select a criterion relevant to the subject matter of the contract and proportionate — they can’t apply social value mechanically where it doesn’t fit (paragraph 8).

KPIs and Reporting on Larger Contracts

For contracts valued at £5 million or more, buyers must set at least one social value KPI, on top of the three-or-more KPIs already required under section 52(1) of the Procurement Act 2023. These KPIs must be published on the Central Digital Platform and reported at least every 12 months via the contract performance notice (PPN 026, paragraph 17). Where a supplier commits to a specific Community Programme, the KPI must track delivery of that programme specifically. Poor performance against these KPIs can be taken into account when a buyer later considers whether to exclude a supplier from future tenders (paragraph 18).

The practical implication: commitments you make at bid stage aren’t just scoring exercises. If you win, they become contract performance obligations that get published and checked.

How to Prepare Now

1. Flag affected opportunities. For any central government, agency or NDPB tender in your pipeline valued at £1m+, check the tender notice date against the 1 January 2027 commencement point. If it’s being published on or after that date, expect the new model.
2. Read the award criteria carefully. Buyers select which of the six criteria (1a–2c) are relevant to the contract — not all six will appear in every tender. Identify which ones your buyer has chosen as soon as the tender documents are published.
3. Build evidenced commitments, not promises. The PPN explicitly links scoring to evidence — “good quality jobs, skills, and opportunities” the buyer can verify (paragraph 3). Vague statements about supporting local communities score poorly against a model this specific. Map each commitment to the exact wording of the criterion selected.
4. Prepare your KPI story early if the contract is £5m+. Decide, before you submit, how you’d actually measure and report the commitment you’re proposing — you’ll need to deliver and report on it if you win.
5. Watch for the autumn 2026 guidance. The sub-criteria, evaluation methodology detail, and the Community Programmes resource for bidders aren’t published yet. Revisit your approach once they land.

Worked example

Say you’re bidding for a £6 million facilities management contract from a central government department, with a tender notice published in February 2027. The minimum social value weighting is 20% of the total score (because the contract is £5m+). The buyer has selected criteria 1a (create/retain jobs) and 2a (training/retraining) as relevant to the contract. Your response would need to set out, specifically and measurably, how many jobs you’d create or retain in the delivery location, and what training or retraining provision you’d offer — ideally co-designed with a local provider — rather than a general statement about being “committed to the local community.” Because the contract is £5m+, you’d also need at least one KPI tracking delivery of whichever commitment you make, ready to report on every six months once the contract is live.

The Bottom Line

PPN 026 doesn’t come into force for another few months, but tenders published from 1 January 2027 onwards will apply it immediately — so now is the time to understand the model, not after your first affected tender lands. The shift from a broad social value model to one built around six specific, evidenced criteria rewards bidders who can show exactly what they’ll deliver and how it will be measured, not bidders who write about social value in general terms.

If you’re preparing a bid for a central government contract that falls under this model, our guide to public sector procurement covers the wider evaluation process this sits within. SwiftBid’s Evidence Manager and Compliance Manager agents map your supporting evidence against the specific criteria a tender selects — including social value criteria — so your commitments are backed by proof rather than general claims. Start your first bid to see how it works on your next tender.

Sources:

• PPN 026: The Social Value Model, GOV.UK — Cabinet Office, published 5 August 2026
• Procurement Act 2023, legislation.gov.uk