How social value is reshaping public spending
UK government procurement has completely changed since I began my career in public service. It is no longer about securing the lowest price; it’s a way for the public sector to invest in future society and communities through contracting with business. It creates positive economic, environmental, and societal impacts alongside core contract deliverables.
A minimum of 10% of bid scoring has been allocated to social value considerations for several years, reinforcing the government’s commitment to ensuring public spending benefits communities, supports sustainability, and drives inclusive growth. With the Procurement Act 2023 now in force and a revised Social Value Model (PPN 002) set to take effect in October 2025, this focus will continue.
Atos has embraced this way of contracting and brought it into the center of our business to demonstrate how embedding social value into procurement can lead to meaningful change.
Our recent contract with the Department for Environment, Food and Rural Affairs (DEFRA) to transform end-user services was an example of where we have used sustainability as a unique selling point through our digital workplace offerings that have circular computing principles at their heart.
What is social value in procurement?
Social value refers to the additional benefits a contract can bring beyond its primary purpose, whether that’s creating jobs, reducing carbon emissions, supporting underrepresented groups or strengthening local economies. The concept was first enshrined in UK law through the Social Value Act 2012, which required public sector buyers to consider social impact when awarding contracts.
The Procurement Act 2023 has taken a significant step forward by making social value a core objective. Social value must be embedded throughout the entire contract lifecycle, rather than being considered only at the bidding stage. Additionally, contracts are now required to align with the government’s broader mission-driven priorities.
The upcoming Social Value Model (PPN 002), effective from October 2025, reinforces this by encouraging not just central government, but all public sector bodies to adopt best practices. It also allows for higher social value weightings in bids, meaning companies that excel in this area gain a competitive edge.
For organizations to truly embed social value, rather than treat it as a box-ticking exercise, they must align initiatives with core business strategies and mission-driven outcomes. This means moving beyond isolated CSR projects and instead integrating social impact into procurement, operations, and partnerships.
For example, suppliers should focus on sustainable, place-based impact, ensuring national programs deliver measurable local benefits, such as using digital inclusion metrics tied to deprivation indices. By leveraging existing tech capabilities (e.g., designing low-carbon IT solutions or upskilling disadvantaged groups through digital training), companies can create scalable, long-term value rather than one-off gestures. Crucially, cross-sector collaboration, such as cascading social value requirements through supply chains or co-developing initiatives with public bodies, ensures efforts are amplified rather than siloed.
The future of social value in procurement
The Procurement Act 2023 and the new Social Value Model mean social value is not just nice to have, it’s a strategic imperative. By aligning with government missions, leveraging partnerships and embedding sustainability into operations, businesses can win contracts while making a real difference.
Much of our work in the public sector involves delivering vital citizen services and we encourage our employees to see their role through the lens of community impact. We make people-first technology decisions, whether that means accessibility by design, managing our carbon footprint or simply giving back to communities we work in through volunteering days or STEM visits for young people.
The UK’s evolving procurement landscape demands more than just cost efficiency, it demands purpose. The message is clear: Social value isn’t just policy; it’s the future of procurement. And those who embrace it will lead the way.
A version of this article first appeared in the June 2025 edition of Government and Public Sector Journal
