The Social Value Model under PPN 002: what central government must apply from October 2025

The key facts

• PPN 002 updates the Social Value Model and aligns it with the Government's missions under the National Procurement Policy Statement.
• It applies to central government departments, executive agencies and non-departmental public bodies, and to above-threshold procurement only.
• In-scope organisations must apply it to procurements commenced under the Procurement Act 2023 on or after 1 October 2025.
• A minimum 10% weighting of the total score, or an equivalent measurement, must be given to social value; under absolute methodologies it is 10% of the quality score.
• All social value commitments made during procurement must appear in the contract as terms, key performance indicators or performance indicators.
• Local employment opportunities created to deliver the contract must be advertised in local job centres using the Government's 'Find a Job' website.
• Criteria must relate to the contract's subject matter, be proportionate, and comply with section 23 of the Procurement Act 2023.
• Unnecessary burdens must not be placed on suppliers, with specific regard to barriers faced by VCSEs and SMEs under section 12(4) of the Act.

What PPN 002 is and who it applies to

Procurement Policy Note 002, updated in February 2025 and previously issued in September 2020, updates the Social Value Model for central government and aligns it with the Government's missions. The National Procurement Policy Statement sets the Government's strategic priorities for public procurement, including delivering social and economic value in support of those missions, and this PPN is the mechanism through which departments put that into practice in their contracts.

The PPN applies to all central government departments, executive agencies and non-departmental public bodies, referred to as in-scope organisations. Other contracting authorities may wish to adopt the approach, but the PPN does not apply to private utilities contracts or to the Ministry of Defence in relation to defence and security contracts as defined by section 7 of the Procurement Act 2023.

Scope is also limited by procurement type. The PPN applies only to covered procurement under the Procurement Act 2023, that is to say above-threshold procurement. It does not apply to below-threshold procurements. The Act and the Procurement Regulations 2024 apply to procurements commenced on or after 24 February 2025.

The core requirement: a minimum 10% weighting for social value

In-scope organisations must apply the PPN to all in-scope procurements where social value is relevant to the subject matter of the contract, proportionate, and compliant with section 23 of the Procurement Act. The headline rule is a minimum 10% weighting, or an equivalent measurement, of the total score for social value. Where absolute methodologies are used, such as Price per Quality Point or a Value for Money index, the 10% applies to the non-price criteria, in other words the overall quality score.

The Social Value Model provides the machinery. It sets out a model question, a menu of social value award criteria and sub-criteria that contribute to the Government's missions, and standard metrics to include in contracts. Commercial teams select a relevant outcome and its corresponding criteria from the menu, refining them where necessary so they relate to the subject matter of the contract, remain proportionate, and comply with the principles of equal treatment and non-discrimination.

Suppliers respond to the social value question as part of their normal tender response, and the response is assessed on a qualitative basis against the criteria and sub-criteria selected from the model. The PPN is clear that the model should be used across the whole commercial lifecycle, but particularly at the planning and preparation stages.

Commitments must survive into the contract

A recurring weakness in social value practice is commitments that are scored at tender stage and then forgotten. The PPN closes that gap: all social value commitments made by suppliers during the procurement process must be reflected in the contract, either as contract terms, key performance indicators, or performance indicators.

There is also a specific rule on employment. Where local employment opportunities are created for the purpose of performing the contract, they must be advertised in local job centres using the Government's 'Find a Job' website. A standard clause to this effect has been added to the Model Services and Mid-Tier Contract templates, and Annex A of the PPN sets out the wording for cases where those templates are not used.

At the same time, organisations must ensure unnecessary burdens are not placed on suppliers. The PPN specifically requires regard to the barriers to participation faced by voluntary, community and social enterprises and by small and medium sized enterprises, as set out in section 12(4) of the Procurement Act.

Timing, transition and why it matters

In-scope organisations must apply the PPN to procurements commenced under the Procurement Act 2023 on or after 1 October 2025. For Act procurements commenced before that date there is a transition period: organisations can choose to apply PPN 002 or continue to use PPN 06/20.

The policy context matters. Social value through procurement is the additional social, economic or environmental benefit derived from the way a supplier works with its staff, suppliers, community or the environment when delivering a contract. The Public Services (Social Value) Act 2012 already requires public bodies to consider social value for services contracts, but this PPN extends beyond that Act, applying a mandatory weighting and a mission-aligned menu of criteria across in-scope central government procurement.

Applying the model in practice

The Cabinet Office has published a Guide to Using the PPN 002 Social Value Model on GOV.UK, and in-scope organisations must familiarise themselves with the model itself. The practical sequence is straightforward: pick a relevant outcome from the menu at planning stage, refine the award criteria and sub-criteria for the specific contract, set the weighting at 10% or more, evaluate qualitatively, then carry the winning commitments into the contract with metrics attached.

Training support is available. E-learning and masterclasses run through the Government Commercial College, and seminars and training workshops can be booked, subject to capacity, via sv@cabinetoffice.gov.uk. Enquiries about the PPN itself go to the Crown Commercial Service Helpdesk.

How eSourcing Data helps

PPN 002 is, at heart, an evaluation and contract management discipline, and that is where a structured eSourcing platform earns its keep. eSourcing Data lets buyers build the model question and the selected award criteria and sub-criteria directly into a weighted evaluation, with the social value weighting set explicitly, so the minimum 10% is applied consistently and visibly on every in-scope procurement.

Because every criterion, score and comment is recorded, the platform produces a complete audit trail showing how social value was assessed on a qualitative basis, which supports internal governance and any external scrutiny. Supplier responses sit in one place alongside the rest of the tender, so evaluation stays fair and traceable.

After award, the commitments that won the marks can be recorded against the contract and tracked as performance indicators, helping teams meet the PPN's requirement that commitments appear in the contract and are actively managed rather than filed away.

What to do about it

1. 1Map which of your procurements are in scope: covered procurement under the Procurement Act 2023, excluding below-threshold buys, private utilities contracts and MoD defence and security contracts.
2. 2Set a hard internal date: apply PPN 002 to Act procurements commencing on or after 1 October 2025, and decide your approach for the transition period before then.
3. 3Update evaluation templates so social value carries a minimum 10% weighting of the total score, or 10% of the quality score under absolute methodologies.
4. 4Select outcomes, criteria and sub-criteria from the model menu at planning stage, refining them for subject matter relevance and proportionality.
5. 5Write winning social value commitments into contracts as terms, KPIs or performance indicators, using the model's standard metrics.
6. 6Include the 'Find a Job' advertising clause wherever contract delivery creates local employment and the model contract templates are not used.
7. 7Book team training through the Government Commercial College or via sv@cabinetoffice.gov.uk.