Under the Public Services (Social Value) Act 2012, a contracting authority must consider, before procuring a services contract or framework, how the procurement could improve the economic, social and environmental well-being of the relevant area. PPN 002 and its minimum 10% weighting are mandatory only for central government, so councils and housing associations set their own social value asks while having regard to the National Procurement Policy Statement.
Before procuring a services contract or framework, a contracting authority must consider how the procurement could improve the "economic, social and environmental well-being of the relevant area" (Public Services (Social Value) Act 2012, section 1). PPN 002, with its minimum 10% social value weighting, is mandatory only for central government. Most councils and housing associations in England must instead "have regard" to the National Procurement Policy Statement, and set their own social value asks.
What does the Social Value Act 2012 require?
Section 1 of the Public Services (Social Value) Act 2012 is a duty to consider social value before procuring a services contract or framework. You must consider how the procurement could improve the "economic, social and environmental well-being of the relevant area".
- The Act extends to England and Wales.
- It was amended by SI 2025/163 from 24 February 2025, when the Procurement Act 2023 went live.
- Welsh devolved authorities are excluded from the duty (section 1(11)–(12)).
The duty is to consider, not to apply a set weighting or a fixed list of outcomes. How much weight social value carries is a decision for each procurement, and it helps to record how you reached it.
Is PPN 002 mandatory for housing buyers?
Usually not. PPN 002 (the Social Value Model) was published on 13 February 2025 and updated on 5 March 2025.
- It is mandatory only for central government, for above-threshold procurements started on or after 1 October 2025.
- Those procurements must give social value a minimum 10% weighting.
- Local jobs created by the contract must be advertised on Find a Job.
- Other authorities "may wish to apply" it.
For most councils and housing associations, then, PPN 002 is a reference you can choose to use, not a rule you must follow.
What does the National Procurement Policy Statement add?
The National Procurement Policy Statement (NPPS) was published on 12–13 February 2025 and has been in effect since 24 February 2025. Under section 13 of the Procurement Act 2023, all contracting authorities must "have regard" to it, with these exceptions:
- devolved Welsh authorities;
- transferred Northern Ireland authorities;
- private utilities;
- call-offs under frameworks or dynamic markets.
Having regard means taking the statement into account in your procurement decisions. A short note on the file for each procurement, saying how you did so, makes that easy to show later. Whether your housing association is a contracting authority at all is covered in the Procurement Act 2023 guide.
What do housing contracts commonly ask for?
There is no standard list. The asks below are commonly seen in housing procurement, but they are common practice rather than rules, and how often each one appears has not been verified. Each tender sets its own.
- local labour and local spend;
- apprenticeships;
- SME supply chains;
- tenant and community engagement;
- volunteering;
- carbon reduction.
Tools such as the TOMs or the HACT social value bank are sometimes used to measure these. Their detail has not been verified for this guide, so check what your own tender documents specify.
Asks work best when they relate to the contract and its residents, are sized to its value, and can be evidenced. A small adaptations or voids contract cannot carry the same commitments as a ten-year planned works programme, and asking it to may deter smaller local firms from bidding.
How should social value be evidenced honestly?
Ask for, and expect, evidence that would stand up to a resident, a board member or an auditor:
- Agree definitions at the start: what counts as "local" (for example, a postcode list), what counts as an apprenticeship start, and what counts as an SME.
- Set a baseline: separate what the contractor already does from what this contract adds.
- Keep primary records: anonymised payroll postcodes, apprenticeship agreements, invoices from local suppliers, attendance records for community sessions, and the method behind any carbon figure.
- Count each outcome once: where an apprentice or local supplier is shared across contracts, report it once and say how it was allocated.
- Report actuals against commitments, including shortfalls and the reasons for them.
- Keep outputs and monetised values apart: give the number of apprenticeships started before any proxy value, and name the tool and version used to calculate it.
- Protect personal data: share anonymised or aggregated records, not personal details.
Treat a social value figure with no evidence trail as a commitment not yet met. Review delivery at contract meetings, not only at year end, so that shortfalls can be fixed while the contract is still running.
How does social value fit with resident engagement?
Tenant and community engagement is one of the commonly seen asks, and it overlaps with how a contractor behaves in residents' homes. Keep the two separate in reporting. Good resident liaison during works is part of delivering the contract; social value should describe what the contract adds beyond that. See resident liaison for how engagement during works is usually organised.
This guide is a summary, not legal advice. Check the current legislation and guidance for your own procurement, or take advice.
How we help
We agree social value commitments with you that fit the contract's size and location, and report outcomes against them with the evidence behind each figure. Contact us to discuss what a contract can realistically carry.
Common questions
Do housing associations have to use a 10% social value weighting?
Not under PPN 002, which is mandatory only for central government above-threshold procurements started on or after 1 October 2025. Other authorities may choose to apply it.
Does the Social Value Act duty apply in Wales?
The Act extends to England and Wales, but Welsh devolved authorities are excluded from the duty by section 1(11)–(12). Check Welsh Government guidance for their position.
Must jobs created by a contract be advertised anywhere?
Under PPN 002, central government contracts must advertise local jobs created by the contract on Find a Job. Other buyers can ask for the same in their own tenders.
Can one apprentice be counted on two contracts?
They should be reported once. If an apprentice or supplier is shared across contracts, say so and split or allocate the outcome, rather than claiming it in full twice.
Sources
- Public Services (Social Value) Act 2012, section 1
- PPN 002: taking account of social value in the award of central government contracts
- National Procurement Policy Statement
- Procurement Act 2023, section 2 (contracting authorities)
Checked 31 October 2026. This guide summarises the rules for planning purposes and is not legal advice; check the current legislation or take advice for your own case.
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