Social Value Act 2012

UK legislation requiring public bodies to consider social, economic and environmental benefits when commissioning services above certain thresholds.

What it requires

The Public Services (Social Value) Act 2012 places a statutory duty on public bodies to consider how their procurement activities can improve the economic, social and environmental well-being of their area. This applies to services contracts and framework agreements above EU thresholds (currently £189,330 for most central government bodies and £663,540 for other public bodies).

The Act requires commissioners to think about social value before starting a procurement process, not as an afterthought. Public bodies must consider whether they can achieve wider benefits through their procurement choices and, if so, how they might do this.

Key obligations

Public bodies must: - Consider social value at the pre-procurement stage - Conduct consultations with stakeholders where appropriate - Document their approach and decisions - Publish a statement explaining their social value policy

The legislation is enabling rather than prescriptive—it doesn't mandate specific social outcomes but requires consideration of potential benefits. These might include local employment opportunities, skills development, environmental improvements, or support for voluntary sector organisations.

Practical application

Many public bodies now include social value criteria in tender evaluations, typically worth 10-20% of total scoring. Common approaches include requiring bidders to demonstrate local supply chain usage, apprenticeship creation, community engagement activities, or environmental sustainability measures.

Enforcement and guidance

While the Act created a legal duty, enforcement mechanisms are limited. The government has issued guidance and tools, including the Social Value Model for central government procurement, which provides standardised metrics for measuring social value outcomes.