Public Services (Social Value) Act 2012
UK statute requiring public bodies to consider social value in service procurement; the legislative basis for current social value frameworks.
Definition
The Public Services (Social Value) Act 2012 is the UK statute requiring public sector bodies in England and partially in Wales to consider how the services they procure might improve economic, social, and environmental wellbeing of the area. The Act applies to above-threshold service procurement (and is increasingly applied to lower-value contracts voluntarily). The Act is the legislative basis for current social value frameworks including PPN 002 and the National TOMs framework. The Procurement Act 2023 reinforces social value through statutory procurement objectives.
How it works in practice
The Social Value Act requires public bodies to consider social value at the pre-procurement stage (specification design, evaluation criteria choice) and to consider whether engagement with potential providers would help inform the social value approach. The Act is light-touch in its drafting: it requires consideration of social value but does not mandate specific weightings or specific frameworks. The substantive social value architecture has been built through subsequent guidance: PPN 002 (10 percent minimum weighting for central government service contracts), the National TOMs framework (the evaluation methodology widely adopted by local government), and equivalent frameworks in Scotland (Community Benefit Clauses) and Wales (Wellbeing of Future Generations Act). The Act and subsequent guidance have driven substantial change in UK public sector procurement: social value is now a meaningful part of most service contract evaluations, and supplier commitments under social value become contract obligations tracked through delivery. The Procurement Act 2023 reinforces this: value for money, public benefit, transparency, and integrity are statutory procurement objectives that subsume the Social Value Act direction. Suppliers should treat social value as a core bid capability, not an optional add-on.
Common questions
Does the Social Value Act apply only to England?
Primarily England, with partial application in Wales. Scotland has equivalent provisions under the Procurement Reform (Scotland) Act 2014. Wales applies the Act partially and supplements with the Wellbeing of Future Generations Act 2015. Northern Ireland has its own procurement framework with social value expectations woven in.
What is the minimum social value weighting under the Act?
The Act itself does not specify a minimum weighting. PPN 002 (central government guidance) sets a 10 percent minimum for in-scope service contracts. Many authorities apply 15-20 percent for strategic contracts. The specific weighting for each procurement is stated in the Invitation to Tender.
Does the Procurement Act 2023 replace the Social Value Act?
No. PA 2023 sits alongside the Social Value Act. PA 2023 introduces statutory procurement objectives (value for money, public benefit, transparency, integrity) that strengthen the social value direction. The Social Value Act continues as the underlying statute; PA 2023 strengthens the framework for how social value is evaluated and tracked.