Guide
Social value for small businesses
The social value question is the one small firms most often leave until last and answer with a list of good intentions. It is scored like any other quality question, often worth as much as a technical one, and a small business can do well on it by promising less and proving more.
Last checked: 6 October 2026
Want the detail?
This is the short version. The social value guide covers the rules across the UK, how answers are scored, worked examples, building a track record, the language to use and every official source, in six parts.
Why tenders ask about it
Before buying services above the thresholds, public authorities in England must consider how the purchase might improve the economic, social and environmental well-being of their area (Public Services (Social Value) Act 2012, section 1). Many then score it in the tender. Central government goes further, with a set minimum weighting.
How much it is worth
| Who and when | Minimum weighting for social value |
|---|---|
| Central government, contracts above the thresholds, under PPN 002 | 10% of the total score |
| Central government, contracts of £1m to under £5m started from 1 January 2027 (PPN 026) | 10% |
| Central government, contracts of £5m or more started from 1 January 2027 (PPN 026) | 20% |
| Councils, NHS bodies, universities and others | Their own choice; many include it |
PPN 002 applies to central government departments, executive agencies and non-departmental public bodies. The new PPN 026, the Social Value Model, published on 5 August 2026, applies to their procurements of £1 million or more including VAT started on or after 1 January 2027, and focuses on two outcomes: good jobs offering fair pay and good working conditions, and skills to address shortages. The government said it set the £1 million threshold so that the rules do not typically apply to the work smaller firms and local social enterprises bid for. Below it, and outside central government, expect each buyer to do things its own way.
What a small firm can realistically offer
- Jobs and skills. An apprenticeship, a work experience placement, or training for someone from a group the buyer cares about, such as care leavers or people returning to work.
- Local spend. Buying materials and subcontracting locally, with the share you expect to spend in the area.
- Fair work. How you pay and treat your own staff, and paying your own suppliers promptly.
- Community time. A set number of hours helping a local school, charity or community group, ideally linked to your skills.
- Environment. Measured reductions you will make on this contract: fewer vehicle miles, less waste, lower energy use.
Read the question first. Many buyers publish the outcomes they want, and a commitment that matches one of them scores far better than a good deed they did not ask for.
Writing the answer
Treat it like any quality question (how answers are scored): follow the question's structure, and for each commitment say what you will do, how much, by when, who is responsible and how you will report it. “One apprentice recruited from the local area within six months of the start, mentored by our operations manager, with a quarterly report to you” is something an evaluator can score. “We are committed to supporting our community” is not.
Scale is not a weakness
Say plainly that you are a small or micro business, so the evaluator can judge your commitments at your size. One apprentice from a ten-person firm is a bigger commitment than one from a firm of ten thousand. Central government guidance asks buyers to have regard to the barriers SMEs and voluntary organisations face. Then make sure you deliver it: expect to be asked to report on what you promised.
Keep a record of what you already do, such as the placements you have offered, the local firms you use and the hours your team volunteers, and update it each year. It becomes the evidence in every social value answer, and it belongs in the pack you keep ready before you bid.
Find the tenders where your social value counts
Tender Radar reads every new UK public sector notice, scores it against what you do and emails you the ones worth reading every weekday morning, with a reason for each. 30 days free, no card needed.
Common questions
Social value
What is social value in a tender?
The wider benefit a contract brings beyond the work itself, such as jobs, skills, support for local businesses or environmental improvements. Many tenders include a social value question, scored like any other quality question, asking what you will commit to deliver through the contract.
How much is social value worth in a tender score?
Central government departments and their agencies must give social value at least 10% of the total score on contracts above the thresholds. From 1 January 2027, under PPN 026, that applies to contracts of £1 million or more including VAT, rising to at least 20% for contracts of £5 million or more. Councils and other bodies set their own weightings.
What social value can a small business offer?
Commitments in proportion to the contract that you can actually deliver and report on: an apprenticeship or work placement, hours of help for a local school or charity, buying from local firms, or paying fairly and promptly through your own supply chain. Specific, measured and modest beats ambitious and vague.
Do councils have to consider social value?
Before procuring services above the thresholds, public authorities in England must consider how the procurement might improve the economic, social and environmental well-being of their area, under the Public Services (Social Value) Act 2012. How they then weight it in the tender is their decision.