The New Social Value Model (PPN 002/25): Evolution or Dilution?

Introduction

It’s been around now since February 2025, but PPN 002/25 only really started to bite on 1^st October when it became mandatory, and PPN 06/20 effectively expired (except for frameworks awarded on the old model). 

The new model defined by the PPN signals another shift in how social value is expected to be delivered, evidenced and evaluated in public procurement. Among bid professionals and delivery teams, however, reactions have been mixed. Some see it as welcome refinement, but others fear it fragments impact and complicates strategy.

Whether the new Social Value Model marks progress or dilution is still open to debate.

What has changed?

PPN 002/25 retains the core principle of outcome-based social value, but introduces several key differences:

• Early market engagement: There is a direct reference to including social value in preliminary market engagement – an admirable attempt to end up with a tender requirement and question that suppliers can achieve. 
• Missions vs themes: Although it’s a nuanced change, the shift from themes to Missions clearly aligns the new model with the Labour Government’s strategy – nothing inherently wrong with that and not an issue in the short term. But making it politically aligned raises an inevitable question: “what will happen if or when there’s a change of Government?” 
• More flexibility: Although the buying guidance refers to selecting one mission and one outcome (a welcome change), guidance is just that – it’s not a strict instruction. Buyers can refine award criteria and sub-criteria based on market feedback and contract specifics.
• Contract-specific commitments: Under PPN 06/20, social value was always intended to be additional and tailored to the contract. The updated emphasis sharpens this intent, placing clear expectations on bidders to align social value delivery directly with each contract's scope, priorities and outcomes.
• Mandatory integration: For a long time, buyers have failed to hold suppliers to account for their social value promises. Now, social value commitments must be embedded in delivery plans and performance metrics.

Benefits of the new approach

• Increased focus: Any lingering suggestion that social value is a frippery or an administrative nuisance has been firmly put to rest. The combined weight of the Procurement Act 2023, the National Procurement Policy Statement and PPN002/25 establishes social value as a serious priority – no longer optional, and here to stay.
• More engagement: If buyers follow the guidance, we should see more, earlier conversations. These will be a major step forward to formulating the relevance and proportionality that we have long been seeking. 
• Greater accountability: For some suppliers there may once have been quiet relief that social value commitments were rarely tested or enforced. But social value was never going to make a meaningful difference if left in that space. Mandatory integration should close this gap.

And the downsides

Some concerns have been raised by APMP members and the wider bidding community:

• Excess focus on contract specificity and localisation: Treating every contract as discrete, each demanding its own social value commitments, makes it difficult for suppliers to develop coherent, long term social value programmes with genuine local, regional or national impact. There is still disappointment that well-designed, robust corporate initiatives continue to carry little or no weight in evaluations.
• Too much flexibility: Suppliers already find the different approaches of local and central government challenging, compounded by the confusion of frameworks, standards, models and measurement tools for social value. Giving buyers flexibility to amend the model risks further diluting what is at least a fairly standard approach. 
• The new model question: Rather than taking the opportunity to simplify the question, we are faced with a longer, more intricate form, complete with additional award criteria. At 338 words long, we just have to hope we are not expected to answer it in 500 words!

Navigating the new model as a bid professional

Whether we like it or not, the new model is here to stay…for a while at least. There is talk of another change, perhaps as a result of the summer consultation, but we’ll have to wait and see. In the meantime, bid teams can adapt to the new model by:

• Engaging earlier: We’ve long advocated that members adapt their Capture plans to include social value conversations that can influence and shape social value requirements. Now there is a clear mandate to have those conversations, so train your salespeople!
• Leveraging your core strengths: Really consider what social value commitments your organisation can comfortably support and sustain. Maybe you could deliver more value by focusing on fewer social impact areas, pursued with greater depth and conviction, adapting them to each contract without losing a clear sense of purpose. Properly extended, existing initiatives should count as contract-specific additionality, not dilution.
• Improving reporting and feedback loops: Stronger social value delivery depends on better reporting and clearer feedback loops. Capturing, analysing and presenting data at both contract and company level builds credible evidence to reference in future bids. And capture lessons from bid feedback and delivery teams to refine future commitments so they remain realistic, measurable and meaningful.

A work in progress

Through the summer consultation, the Cabinet Office has already signalled that it is open to further refinement of the model. Bid professionals have an opportunity — and arguably an obligation — to share insights from the front line:

• Is the model encouraging better practice?
• Are buyers asking the right questions?
• Are commitments deliverable?

The new model may offer greater flexibility, but that need not come at the expense of strength. With thoughtful engagement and strategic alignment, it can mark a new phase of meaningful, embedded social value.

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This blog is based on output from the New Social Value Model Roundtable team, hosted by Isabelle Parasram, CEO of the Institute for Social Value, at the APMP UK Social Value Roadshow on 18^th September 2025. The ideas have been developed and enhanced with experience and feedback from the Social Value Group Committee.

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