
August 28, 2025
Social value is about to get serious: are you ready?
From October 1st, every public sector contract in the UK will have to take account of social value in the award process. That’s thanks to the updated Social Value Model under Procurement Policy Note (PPN) 002.
Sounds niche? It’s not. If you supply to the public sector (whether you’re a multinational or a small business) this change could affect you.
Until now, social value in procurement has been a nice-to-have. A box to tick. From October, it’s mandatory. Buyers will have to score your bid not just on cost and quality, but also on the social impact you bring.
What counts as social value?
Think:
● Are you supporting your local community?
● Are you creating jobs and skills?
If you can prove it, you’re in a stronger position to win. If you can’t, you could lose out – even if your price is competitive.
Why SMEs and supply chains should care
You might think: “We’re only a small business, this doesn’t apply to us.” But public sector procurement isn’t just about billion-pound contracts. Councils, NHS trusts, schools, and local authorities buy from SMEs every single day.
And here’s the kicker: if you’re in the supply chain of a bigger company that bids for public contracts, they’ll soon be asking you for evidence of your social value too.
So whether you’re front and centre on a tender, or part of someone else’s supply chain, you need to be ready.
How do you prove your social value?
It’s not enough to say you do good things. From October, buyers will want measurable outcomes. The Social Value Model sets out five key themes:
1. COVID-19 recovery
2. Tackling economic inequality
3. Fighting climate change
4. Equal opportunity
5. Wellbeing
If you can show practical action in these areas (and put numbers against them), you’ll stand out.
How to measure and report social value
The good news? This doesn’t need to be complicated. With the right platform (hello, IIC), you can log, measure, and report your impact in a way that buyers trust. Whether you’re planting trees, volunteering hours, or making donations, you’ll have the data to back it up.
What to do next
Don’t wait until October to figure this out. Start embedding social value measurement into your business now – before your competitors do. Because when the new rules land, the companies that can show proof will have the edge. And those who can’t? They’ll be left scratching their heads, wondering why they didn’t get the contract.
Social value belongs in every boardroom and every bid. Whether you’re a maincontractor or part of a supply chain, the message is the same: prove your impact, or prepare to lose out. At IIC, we help businesses of all sizes turn giving into growth.