Whilst the concept of UK public sector organisations embedding social value into its strategy to address pressing societal challenges has been around for decades, it gained real momentum with the introduction of the Public Services (Social Value) Act in 2012.
The Act required public sector buyers to ‘consider’ the wider economic, environmental, and social impacts of bids from potential suppliers. This has been further boosted by the landmark Procurement Act 2023, which put additional focus on transparency and outcome reporting in this area in public procurement.
But the advantages of social value in the public sector go beyond meeting legislation requirements. Analysis of UK public sector procurement between 2010 and 2020 indicates a missed £760bn worth of opportunities to create economic, social and environmental value, which is equivalent to £56bn a year.
If public sector organisations are to fully maximise these opportunities, they need to proactively integrate social value considerations into their procurement and strategic planning processes.
Organisations generating results in maximising social value
There are a range of organisation and local authorities already making giant strides in this area.
NEPO
NEPO is an organisation that provides procurement solutions shaped by public sector and supplier consultation – primarily in the North East - delivering positive outcomes for diverse communities and organisations.
They are also a great example of commitment and best practice when it comes to social value as part of a wider organisation strategy.
Their fourth annual social value report demonstrates a significant impact since 2024, with over £16 million secured for North East communities, people and the environment. The report, covering August 2024 to July 2025, details outcomes achieved through partnerships with Member Authorities and suppliers, including:
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426 hours helping unemployed people back into work
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474 hours of teaching support
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283 hours of volunteering
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40 tonnes of carbon saved
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26 weeks of apprenticeship training
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12 local people now employed in full-time roles
Supplier collaboration delivered social value, strengthened supply chains, and reduced emissions.
Nicola Shelley, Managing Director at NEPO, stated: "By working collaboratively with our Member Authorities, suppliers and partners, we can deliver meaningful Social Value outcomes that support communities, strengthen local economies and maximise public value across the North East."
Comensura
Andrew Banfield, Head of Service at Comensura, and his team have been working with local authorities across the South West on social value initiatives that benefit not just the community, but also the local authorities themselves.
Whilst employment rates in the South West are one of the highest in the UK, there are many people still looking for work on a long-term basis. There are also significant skills shortages within the public sector, including care, technology, and new ‘green skills’ in heating, insulation, green energy, and electric vehicle charging.
Partnership initiatives they’re overseen include attending events for the local job seeker community, providing CV support and interview preparation guidance as well as information about roles in the area.
With one eye on the workforce of the future, they’ve also worked with representatives from local authorities, attending school careers events, providing advice on routes to meaningful employment post education and promoting the public sector as a viable and rewarding option.
“Working with local authorities to deliver sessions like these is about more than just sharing knowledge,” states Andrew Banfield. “It’s about empowering those seeking work and young people to believe in their abilities both now and in the future.
And it’s about finding the best route for individuals to achieve their goals, as well as how local authorities might play a part in that.”
Inspiration from the private sector - Veolia
There are opportunities for the public sector to gain inspiration from the private sector. Comensura and waste innovators Veolia have been working in partnership with Big Issue Recruit to break down barriers to work and open up real opportunities for the homeless community.
Together, they created fair, inclusive routes into employment with guidance on stable housing, banking, and money management, helping integrate Big Issue Recruit candidates into Veolia’s workforce strategy with mentoring as part of their onboarding.
Lianne Watkinson, Head of Service at Comensura stated: “We're proud to join forces with Veolia and Big Issue Recruit to open doors to meaningful work for those facing challenges. By working closely together, we’re making recruitment fairer, more inclusive, and truly people-focused, helping individuals in need find lasting opportunities and building a workforce that reflects the diversity and resilience of the communities we serve.”
In the last year, this partnership has created 66 work placements for homeless people in need of employment.
With a large number of local authorities seeking refuge workers in order to avoid missing deadlines for more sustainable waste collection, this isn’t just an opportunity to create real social impact, but a way to ensure they have the personnel needed to make an environmental impact as well.
Fair Chance Business Alliance
Another accessible opportunity is the Fair Chance Business Alliance’s, Unite 1k initiative - a pioneering programme aimed at giving individuals with criminal records wider access to employment.
Around 1 in 4 working-age people in the UK have some form of criminal record on the Police National Computer (PNC). A large majority of these are minor offences – unpaid parking tickets, train/bus fare or TV license evasion, shoplifting or criminal damage, and can be from a long time ago. That means a mistake made aged 18 – for example - could still be affecting job prospects years later.
Unite 1K is a high-impact campaign to mobilise at least 1,000 UK employers to embed Fair Chance hiring through adoption of the Fair Chance Charter.
“As a founding member of the Fair Chance Business Alliance, Impellam Group hope to play a pivotal role in the success of the FCBA 1k,” states Simon Blockley, CEO Impellam UK and Europe.
“Other organisations can do the same. Whilst in the public sector there are roles with vulnerable people where criminal records should carry more weight, making a mistake earlier in your life needn’t rule you a career in the public sector completely.”
Next steps for maximising social value in public sector services procurement
To maximise social value in procurement, local authorities and public sector organisations need to establish clear frameworks for evaluating and tracking social outcomes. This includes setting measurable targets, engaging stakeholders throughout the process, and nurturing partnerships with organisatons that are committed to delivering positive community impacts.
Regular training on social value principles, transparent reporting, and sharing best practices across sectors will further enhance effectiveness. Embracing innovative approaches, such as leveraging technology for data-driven decision-making, can help identify new opportunities and ensure that public sector services procurement strategies remain adaptable, relevant, and aligned with evolving societal needs.
If you want to find out more about practical ways to maximise social value in public sector services procurement, get in touch with Comensura today.
