The UK Social Value Act

The UK Social Value Act was passed in 2012. It requires public sector organisations to consider the social, economic, and environmental impacts of their procurement decisions. This means that when public sector organisations are buying goods or services, they must consider not only the financial cost, but also the wider benefits that the procurement could bring to society.

The Social Value Act is intended to be tool that can be used to create a more sustainable future. By requiring public sector organisations to consider the wider impacts of their procurement decisions, the Act aims to help to reduce inequality, improve the environment, and create jobs.

There are many ways that public sector organisations can incorporate social value into their procurement decisions. For example, they can:

• Set social value targets: Public sector organisations can set targets for the amount of social value they want to achieve through their procurement. This could involve targets for the number of jobs created, the amount of money saved, or the improvement of quality of life.
• Consider social value in the tender process: When public sector organizations are inviting bids for contracts, they can ask bidders to demonstrate how their proposals will deliver social value. This could involve asking bidders to include a social value statement in their bid, or to provide evidence of their social impact.
• Use social value in the contract award process: When public sector organisations are awarding contracts, they can consider the social value of the bids as well as the financial cost. This could involve awarding the contract to the bidder that offers the best combination of social value and financial value.

Here are some examples of how the Social Value Act has been used in practice:

• In 2016, the Greater Manchester Combined Authority used the Social Value Act to award a contract for a new bus fleet to a company that committed to using electric buses. This will help to reduce air pollution and improve air quality in Greater Manchester.
• In 2017, the London Borough of Hackney used the Social Value Act to award a contract for a new recycling service to a company that committed to providing jobs for local people and using recycled materials in the production of its products. This will help to reduce waste and create jobs in Hackney.
• In 2018, the Scottish Government used the Social Value Act to award a contract for a new healthcare IT system to a company that committed to providing training and employment opportunities for people with disabilities. This will help to improve the lives of people with disabilities in Scotland.

These are just a few examples of how the Social Value Act is being used to create a more sustainable future. When you next see a tender from a public organisation such as a local authority you are likely to see reference to the Social Value Act and a requirement to make some form of submission with regard to the social value impact or contribution your organisation will make.