PPN 026 The Social Value Model: A shift in focus, not in purpose.
PPN 026 narrows the focus of social value procurement onto jobs, skills and economic opportunity, but the underlying purpose remains unchanged. Discover why creating pathways into work is more important than ever and why a holistic approach still matters.
The headlines around PPN 026: The Social Value Model announcement are impossible to miss. From 1 January 2027, central government procurements will adopt a new social value model focused on one clear priority: creating jobs, developing skills and boosting economic opportunity in local communities.
For those of us working in social value, the immediate reaction has probably the same: this is a significant simplification of what we’ve become used to seeing in public sector procurement. The previous model encouraged organisations to think broadly about social impact, encompassing areas such as wellbeing, equal opportunity and climate action however the new model focuses much more narrowly on economic inequality, good jobs and skills development. It also includes a specific emphasis on providing work experience opportunities.
The question many organisations are now asking is “What does this mean for our social value strategy?” My view is simple. The scoring criteria may have changed, but the needs of our communities haven’t.
Returning to the fundamentals
At its heart, social value has always been about helping people access opportunity. The new model places that front and centre. The Government has been explicit that public procurement should support “good British jobs, skills and opportunities in every postcode”, with social value focused on delivering employment, skills development and economic growth. In many ways, this represents a return to the origins of social value in public procurement. Job creation, employability, workforce development and progression pathways are tangible outcomes that organisations can measure and demonstrate. It’s also a recognition of the challenges facing many communities today. The recent Milburn Review highlighted that socioeconomic background remains a significant barrier to employment and progression, further demonstrating the importance of targeted employability initiatives that help people access opportunities, build skills and move into sustainable careers.
Across the UK, skills shortages are becoming increasingly localised and sector specific. At the same time, many people remain excluded from the labour market because they lack experience, confidence, networks or access to opportunity. The renewed focus on jobs, skills and work experience is a direct response to those challenges.
The opportunity for employers
One of the most interesting additions within the new model is the explicit reference to work experience. For years, employers have struggled to find people with the skills they need whilst candidates, particularly young people and those returning to the workforce, often struggle to gain experience because nobody is willing to give them a first opportunity. Work experience, mentoring, insight days, industry placements and skills programmes can help bridge that gap.
Through PSR initiatives such as National Interview Week and the PSR Skills Academy, we’ve seen first hand how relatively small interventions can increase confidence, improve employability and help people take meaningful steps towards employment. The new model creates an opportunity for more organisations to invest in these pathways and to view talent development as a social value outcome rather than simply a recruitment activity.
Don’t lose sight of the bigger picture
What concerns me slightly is the risk that some organisations will interpret PPN 026 as a signal to stop investing in those areas that are no longer explicitly referenced within the model and I think that would be a mistake. The removal of wellbeing, equal opportunity and climate related measures from the scoring framework does not mean these issues have disappeared. Nor does it mean customers, employees and communities value them any less. In fact, many of the organisations delivering the strongest employment and skills outcomes are doing so because they have invested in inclusive hiring practices, employee wellbeing, accessibility, flexible working and sustainable business practices.
These things are connected.
An individual is more likely to access a job if recruitment processes are inclusive. They are more likely to stay in employment if they feel supported and valued. They are more likely to progress if they have access to learning and development. Social value doesn’t happen in silos. The assessment criteria may be narrower, but genuinely creating opportunity still requires a holistic approach.
What’s next?
The Government has confirmed that further guidance will be published in Autumn 2026 ahead of implementation on 1 January 2027. Until then, organisations should resist the temptation to view this as simply a bidding or compliance exercise. The most successful organisations will be those that use this moment to ask a bigger question:
How are we creating meaningful pathways into good work, developing the skills our economy needs and helping people access opportunities they may not otherwise have had?
Because while the framework may have changed, the purpose of social value remains exactly the same: ensuring that every pound spent delivers benefits that extend far beyond the contract itself.
Find out more about the PSR Social Value Programme and the activities we deliver to support the existing and future ambitions of the UK Social Value Model in our annual Social Value Plan.
