Social value in tenders: how to score the marks most SMEs drop

Social value is the part of a public sector tender that small businesses most often treat as an afterthought. It shouldn’t be. In central government contracts where social value is relevant, it now has to carry at least 10% of the total score, and in a close competition that’s more than enough to decide who wins.

The good news is that social value marks are some of the most winnable on the paper. You don’t need to be a large company with a sustainability department. You need specific commitments, a believable plan to deliver them, and evidence that you’ve done this sort of thing before. This guide explains the rules and where SMEs lose marks.

What social value means in a tender

Government guidance describes social value as the additional social, economic, or environmental benefit that comes from the way a supplier works with its staff, suppliers, community, or the environment when delivering a contract. In other words, it’s not about the core service you’re bidding for. It’s about the extra good that happens because you’re the one delivering it: local jobs, apprenticeships, spend with small suppliers, lower carbon emissions, and so on.

Two pieces of the framework matter most.

The Public Services (Social Value) Act 2012 requires public bodies, when procuring public services contracts, to consider how what they’re buying might improve the economic, social, and environmental well-being of the relevant area. That duty is the reason councils and other public bodies ask about social value at all.

Then there’s Procurement Policy Note PPN 002, “Taking account of social value in the award of central government contracts”. It was first published on 13 February 2025 and updated on 5 March 2025. The PPN itself notes that it goes further than the 2012 Act, which only covers services contracts.

The rules that changed in 2025

The Procurement Act 2023 applies to procurements commenced on or after 24 February 2025. PPN 002 sits under the new Act and sets out how central government departments and their in-scope bodies must handle social value. The key points for bidders are:

• In-scope organisations must apply a minimum 10% weighting (or an equivalent measurement) of the total score for social value.
• They must apply the PPN to procurements commenced under the Procurement Act 2023 on or after 1 October 2025. Before that date they could choose between PPN 002 and the older PPN 06/20 (first issued in September 2020).
• Social value must be applied where it is relevant to the subject matter of the contract and proportionate.
• Whatever you commit to must be reflected in the contract as contract terms, key performance indicators, or performance indicators.
• Where local employment opportunities are created to perform the contract, they must be advertised in local job centres.

That fourth point is the one SMEs underestimate. Your social value answer isn’t a wish list. If you win, your promises can become contractual KPIs that you’ll be asked to report against.

One caveat. PPN 002 is written for central government. Councils, NHS bodies, and other buyers may run their own social value approach and weighting, so always read the specific question, the weighting, and the evaluation criteria in the tender pack before you write a word.

The outcomes buyers are scoring against

PPN 002 comes with a Social Value Model, a menu of award criteria linked to government missions. The buyer picks the outcome or outcomes that fit the contract. The current model lists these outcomes:

• Fair work
• Skills for growth
• Resilient, innovative and flexible supply chains
• Sustainable procurement practices
• Support the reduction in crime through community cohesion, awareness raising and action
• Employment and training for those who face barriers to employment
• Creating a pipeline of opportunities for the contract workforce, reducing barriers to entry for under-represented groups
• Increasing productivity through physical and mental wellbeing: in the supply chain and communities in the relevant area

Each outcome comes with standard reporting metrics. Examples from the model include the number of employment opportunities created under the contract, apprenticeship opportunities at levels 2, 3, and 4+ created or retained under the contract, contract spend with start-ups, SMEs, VCSEs, and mutuals, and the annual reduction in carbon emissions from performing the contract (in tonnes of CO2 equivalent).

Read the metrics before you write: they tell you exactly what the buyer will want to measure.

Where SMEs drop the marks

When I review tender responses, the same gaps come up again and again.

The biggest is vague language. “We are committed to supporting the local community” scores very little. The Social Value Model’s additional criteria say that a specific, measurable, and time-bound commitment is the minimum requirement to score points. If there’s no number and no date, you’re starting from zero.

The second is the missing plan. The model asks bidders for a timed project plan with action steps, metrics, monitoring tools, governance with escalation points, and feedback procedures. Many SME answers describe good intentions but never explain who will do what, by when, and how progress will be checked.

The third is no target group. The criteria ask bidders to name a target cohort (or explain how one will be identified) and how they’ll reach it. “Local people” is not a cohort. “Unemployed residents within the borough, recruited through the local job centre” is.

Other common gaps are promising things unrelated to the contract and pasting the same generic answer into every bid.

How to write commitments that score

A strong social value answer reads like a mini project plan.

Start with the outcome the buyer has selected and the metric attached to it. Then write a commitment that a stranger could check. For example: “We will create two apprenticeship opportunities at level 2 or 3 within the first 12 months of the contract, recruited from residents of [area], and report progress quarterly.” That has a number, a timescale, a cohort, and a reporting cycle.

Next, show how you’ll deliver it. Name the role responsible, the partners you’ll work with (a local college, the job centre, a training provider), and the checkpoints along the way. Explain what you’ll do if you fall behind. That’s the governance and escalation the model asks for.

Then think about influence beyond your own staff. The criteria ask how you’ll influence suppliers, customers, and communities. For a small business that could mean requiring your own subcontractors to pay at least the rate you pay, or buying consumables from local SMEs and tracking that spend.

Finally, be realistic. A modest commitment you can definitely deliver is better than an ambitious one that becomes a failed KPI. The criteria also ask about publishing your plans and performance, so overpromising can follow you into the next bid.

Practical ideas that suit small firms

You don’t need a big budget. Commitments that suit SMEs include:

• Apprenticeships or work placements tied to the contract
• Recruiting through local job centres or employability schemes
• Spending a set share of contract value with local SMEs or VCSEs
• Cutting vehicle mileage or fuel use on the contract, measured and reported
• Staff wellbeing support that you already offer, extended and measured
• Volunteering hours with a named local organisation

For security companies, crime reduction and community cohesion outcomes can be a natural fit, as long as the commitment is genuinely additional to what the contract already pays for.

Using ISO 14001 and ISO 45001 as evidence

This is where a certified management system earns its keep. Buyers want evidence that you can measure, monitor, and improve, and that’s exactly what an ISO management system is built to do.

If you hold ISO 14001:2026 (or are still on the 2015 edition during transition), you already have environmental objectives, monitoring records, and a process for checking progress. That’s a ready-made source of data for carbon or waste commitments, and it shows the buyer that your environmental claims sit inside an audited system rather than a one-off promise.

ISO 45001:2018 does the same for health, safety, and wellbeing. Your consultation records, objectives, and performance data can support commitments under the wellbeing outcome. ISO’s own website shows a revision is planned for publication as ISO 45001:2027, so keep an eye on that if you’re planning certification.

Certification alone won’t win the marks, but it gives you the evidence trail and the habit of setting measurable objectives that evaluators look for. If you run more than one standard, an integrated management system keeps all of this in one place. For more on what buyers ask to see, my post on the compliance evidence buyers want to see is a good companion read, alongside the accreditations security and construction firms can’t afford to skip.

FAQs

What is the minimum social value weighting in government tenders?

Under PPN 002, central government departments and other in-scope organisations must apply a minimum 10% weighting (or an equivalent measurement) of the total score for social value. Other public buyers, such as councils, may set their own weighting, so check the tender documents.

Does PPN 002 replace PPN 06/20?

PPN 002 must be applied to procurements commenced under the Procurement Act 2023 on or after 1 October 2025. For procurements commenced under the Act before that date, in-scope organisations could choose to apply PPN 002 or continue using PPN 06/20 during the transition.

What makes a social value answer score well?

A specific, measurable, and time-bound commitment linked to the outcome the buyer selected, a named target group, and a timed delivery plan with metrics, monitoring, and escalation. Vague statements of commitment score very little.

Can a small business compete on social value with large firms?

Yes. The Social Value Model’s criteria look at the quality of the commitment and the plan to deliver it, not the size of the bidder. In my experience, realistic, local, well-evidenced commitments from an SME can outscore generic promises from a larger firm.

Do I have to deliver what I promise in my social value answer?

Yes. PPN 002 requires social value commitments to be reflected in the contract as contract terms, key performance indicators, or performance indicators, so you should expect to report against them.

Need help with your next tender?

At CAW Consultancy we help SMEs prepare tender responses, including the social value sections that so often decide the result. We can also help you put ISO 14001, ISO 45001, or an integrated management system in place, so you’ve got the evidence to back up every commitment. Our gap analysis is free.

Call 01257 824481, email Craig@cawconsultancy.co.uk, or visit www.cawconsultancy.co.uk to talk through your next bid.

Sources

• PPN 002: Taking account of social value in the award of contracts (GOV.UK)
• PPN 002: Taking account of social value in the award of central government contracts, HTML (GOV.UK)
• Procurement Policy Note 002: The Social Value Model (GOV.UK)
• Procurement Act 2023 (legislation.gov.uk)
• Public Services (Social Value) Act 2012, section 1 (legislation.gov.uk)
• ISO 14001:2026 (ISO)
• ISO 45001:2018 (ISO)

Craig Willetts is the founder of CAW Consultancy Business Solutions Ltd and a UK lead auditor with over 20 years’ experience across ISO management systems and UK security industry schemes.