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Procurement6 May 2026 · Updated 12 October 202611 min read

PPN 002 Social Value guide: everything UK businesses need to know

Update, 7 October 2026: from 1 January 2027, PPN 026 (The Social Value Model) replaces PPN 002 for new central government tenders. This guide covers PPN 002, which still applies to tenders started before then.

Read our PPN 026 talent pipeline guide

Procurement Policy Note 002 is the new framework for Social Value in UK government procurement. Published in February 2025 and mandatory from 1 October 2025, it replaces PPN 06/20. Here is your complete guide to the 5 missions and 8 outcomes.

Key points

  • Required for in-scope central government procurements started from 1 October 2025
  • Replaces PPN 06/20 with a new structure aligned to government missions
  • Structured around 5 missions and 8 outcomes
  • Aligned with the Procurement Act 2023
  • Described as a "menu of options" for contracting authorities

In this guide

What is PPN 002?

Procurement Policy Note 002, titled "The Social Value Model", was published by the Cabinet Office in February 2025. It becomes mandatory from 1 October 2025 and replaces the previous PPN 06/20.

The key change is alignment with government missions. While PPN 06/20 had 5 themes (including COVID-19 Recovery), PPN 002 restructures Social Value around 5 government missions with 8 specific outcomes that suppliers can deliver.

"The Social Value Model is a menu of options for contracting authorities to use when selecting social value outcomes for evaluation in their procurements."

Source: Cabinet Office PPN 002

Who does it apply to?

PPN 002 is mandatory for:

  • All central government departments
  • Executive agencies (such as DVLA, HMRC)
  • Non-departmental public bodies (NDPBs)
  • Arm's length bodies

While not mandatory for local authorities, NHS trusts, or devolved administrations, many adopt similar requirements. Some councils apply 15 to 20% or higher Social Value weighting in their procurement evaluations.

Key dates

  • • February 2025: PPN 002 published
  • • 1 October 2025: Mandatory implementation
  • • PPN 06/20: Superseded by PPN 002

The 5 missions

PPN 002 aligns Social Value with the government's 5 national missions. Each mission contains one or more outcomes that suppliers can address through their contracts:

Mission 1: Kickstart Economic Growth

Drive economic growth and support thriving businesses across the UK

Outcome 1: Fair work

Promoting fair pay, job security, and good working conditions

Outcome 2: Skills for growth

Developing workforce skills and supporting apprenticeships

Outcome 3: Resilient supply chains

Supporting SMEs and building diverse, local supply chains

Mission 2: Make Britain a Clean Energy Superpower

Achieve net zero carbon emissions by 2030

Outcome 4: Sustainable procurement

Reducing carbon, minimising waste, promoting clean energy and circular economy

Mission 3: Take Back Our Streets

Halve violent crime and make communities safer

Outcome 5: Reduction in crime

Supporting community cohesion, domestic abuse awareness, and safer neighbourhoods

Mission 4: Break Down Barriers to Opportunity

Ensure everyone has the chance to succeed regardless of background

Outcome 6: Employment for those facing barriers

Supporting NEETs, prison leavers, care leavers, disabled people, long-term unemployed

Outcome 7: Pipeline of opportunities

Creating pathways into employment, education, and training

Mission 5: Build an NHS Fit for the Future

Support physical and mental health across communities

Outcome 8: Physical and mental wellbeing

Promoting health initiatives, tackling loneliness, and supporting community wellbeing

The 8 outcomes explained

Contracting authorities select relevant outcomes based on the contract's nature and local priorities. Here is what each outcome means for suppliers:

Outcome 1: Fair work

Promote fair pay, job security, and good working conditions. This includes paying the Real Living Wage, offering secure contracts, and providing employee development opportunities.

Outcome 2: Skills for growth

Develop workforce skills through apprenticeships, training programmes, and partnerships with educational institutions. CommuniTie donations of vocational equipment support this outcome.

Outcome 3: Resilient supply chains

Support SMEs and VCSEs (voluntary, community, and social enterprises) in your supply chain. Demonstrate diverse, local sourcing and support for smaller suppliers.

Outcome 4: Sustainable procurement

Reduce carbon emissions, minimise waste, and promote circular economy. Donating surplus goods through CommuniTie diverts items from landfill and supports this outcome.

Outcome 5: Reduction in crime

Support community cohesion, domestic abuse awareness, and initiatives that make neighbourhoods safer. Community engagement and charitable support contribute here.

Outcome 6: Employment for those facing barriers

Support NEETs (not in education, employment, or training), prison leavers, care leavers, disabled people, and long-term unemployed into work.

Outcome 7: Pipeline of opportunities

Create pathways into employment, education, and training. Work experience, mentoring, and careers support for disadvantaged groups. Donations of educational equipment support schools delivering these pathways.

Outcome 8: Physical and mental wellbeing

Promote health initiatives, tackle loneliness, and support community wellbeing. Charitable donations to health charities and community organisations demonstrate commitment.

How Social Value is evaluated

Social Value is evaluated through dedicated questions in the tender. Evaluators look for:

Relevance

How well do your proposals address the selected outcomes?

Measurability

Can your commitments be tracked and verified?

Additionality

Would these benefits happen anyway, or are they additional?

Deliverability

Do you have a realistic plan to deliver your commitments?

Local impact

Will benefits reach the communities where the contract is delivered?

Proportionality

Are your commitments proportionate to the contract value?

Typical scoring approach

Most evaluations use a 0 to 5 or 0 to 10 scoring scale:

ScoreDescription
0No response or completely unacceptable
1Poor response with major concerns
2Below average with some concerns
3Acceptable, meets basic requirements
4Good response, exceeds some requirements
5Excellent, comprehensive, exceeds all requirements

Procurement Act 2023 alignment

PPN 002 aligns with the Procurement Act 2023, which recognises 6 categories of public benefit:

Jobs

Employment, skills, and training opportunities

Growth

Local economic growth and supply chain support

Social

Community support and charitable giving

Environment

Carbon reduction and sustainability

Innovation

New approaches and improved outcomes

Wellbeing

Health, safety, and quality of life

These categories provide consistent language for Social Value across all UK public procurement, making it easier for suppliers to understand requirements and demonstrate impact.

Practical tips for winning contracts

1. Build evidence before you bid

Evaluators want to see a track record. Generic commitments without evidence score poorly. Before submitting bids, build documented evidence of community activity:

  • Donations to local schools and charities with receipts and dates
  • Thank you letters and photos from recipients
  • Records of beneficiary numbers reached
  • Location data showing local impact

2. Be specific and measurable

Vague commitments score lower than specific, measurable ones. Compare:

Weak

"We will support local charities and schools in the area"

Strong

"We will donate £5,000 of equipment to 3 schools within 10 miles of the contract location, reaching 500 students, within the first 6 months"

3. Match outcomes to the contract

Read the tender documents carefully. Contracting authorities select specific outcomes relevant to their contract. Focus your response on their priorities, not every possible Social Value activity.

4. Demonstrate additionality

Evaluators want to know what extra benefits winning this contract will create. If you already donate to local schools as part of your normal operations, that is good. But what additional activity will this specific contract enable?

5. Common mistakes to avoid

Mistake: Copying and pasting generic responses

Fix: Tailor every response to the specific contract and location

Mistake: Making commitments you cannot track

Fix: Only commit to activities you can measure and evidence

Mistake: Focusing on outcomes not specified

Fix: Address the outcomes the tender document asks for

Mistake: Providing no evidence of past delivery

Fix: Build a track record before you bid

Mistake: Overpromising unrealistic outcomes

Fix: Be ambitious but deliverable

How CommuniTie helps

CommuniTie helps you build the evidence base evaluators want to see. Your donations support multiple PPN 002 outcomes:

Which outcomes can CommuniTie donations support?

  • • Outcome 2: Vocational equipment donations develop workforce skills
  • • Outcome 3: Supporting local charities strengthens community supply chains
  • • Outcome 4: Donating surplus goods diverts items from landfill
  • • Outcome 7: Educational donations create pipelines of opportunity
  • • Outcome 8: Supporting health charities promotes wellbeing

Find local recipients

Every school and charity is checked before its wishlist goes live.

Document everything

Every donation logged with date, value, recipient details, and beneficiary counts

Postcode breakdown

Prove local impact with geographical distribution of your donations

Thank you evidence

Collect and store thank you photos and messages from recipients

Clear records

Donation records you can map to the buyer's chosen framework

Tender pack export

Generate formatted evidence packs for bid submissions

Note: CommuniTie helps you track and document your charitable activities in formats compatible with PPN 002 requirements. We are not affiliated with or endorsed by the Cabinet Office or any contracting authority. The evaluation and scoring of Social Value submissions remains the responsibility of the procuring body.

Official sources

Related articles

Read our PPN 026 talent pipeline guide
Bryn Powell

Written by

Bryn Powell

Co-founder, CommuniTie · Trustee and General Manager, Miricyl

Social Value and CSR
Social Value & CSR17 April 202612 min read

Social Value and CSR: the complete UK business guide for 2026

Social Value has become essential for businesses bidding on public sector contracts. Here's everything you need to know about the Social Value Act, PPN 002, and how to measure and report your community impact effectively.

In this guide

What is Social Value?

Social Value refers to the wider economic, social, and environmental benefits that organisations create beyond their core commercial activities. For businesses, this includes:

  • Supporting local communities through donations and volunteering
  • Creating employment and training opportunities
  • Reducing environmental impact and promoting sustainability
  • Supporting local supply chains and SMEs
  • Improving health and wellbeing outcomes
  • Promoting equality, diversity, and inclusion

The Social Value Act 2012

The Public Services (Social Value) Act 2012 was a landmark piece of legislation that changed how public sector bodies approach procurement. The Act requires commissioners to consider:

What the Act requires

  • • How proposed services might improve economic, social, and environmental wellbeing
  • • How procurement processes can secure these improvements
  • • Whether to consult on these matters before procurement

While the Act initially only applied to services contracts above certain thresholds, it set the foundation for a much broader shift in how public procurement considers community impact.

PPN 002: the current standard

Procurement Policy Note 002, published in February 2025 and mandatory from 1 October 2025, is the current framework for evaluating Social Value in central government procurement.

Key PPN 002 requirements

  • • Social Value evaluated against 5 missions and 8 outcomes
  • • Aligned with the Procurement Act 2023
  • • Applies to all central government contracts
  • • Mandatory from October 2025

Many local authorities and public bodies apply Social Value weightings of 10 to 20% or more. This means Social Value can now be the deciding factor in contract awards.

The 5 missions and 8 outcomes

PPN 002 introduced 5 government missions with 8 outcomes that align with national policy priorities:

Mission 1: Economic Growth

Fair work, skills for growth, resilient supply chains

Mission 2: Clean Energy

Sustainable procurement and net zero goals

Mission 3: Take Back Our Streets

Support reduction in crime, community cohesion

Mission 4: Break Down Barriers

Employment for those facing barriers, pipeline of opportunities

Mission 5: NHS Fit for Future

Physical and mental wellbeing

The TOMs framework explained

The National TOMs (Themes, Outcomes, and Measures) framework provides a standardised way to measure and report Social Value. Developed by the Social Value Portal in partnership with the National Social Value Taskforce, it's widely used across UK public procurement.

How TOMs works

  • • Themes: Broad categories (Jobs, Growth, Social, Environment, Innovation)
  • • Outcomes: Specific goals within each theme
  • • Measures: Quantifiable units with proxy values in GBP

Major procurement frameworks including SCAPE, Pagabo, GCA, and Constructionline have adopted TOMs-compatible reporting, making it the de facto standard for Social Value measurement in the UK.

The business case for Social Value

Beyond contract compliance, there are compelling reasons for businesses to prioritise Social Value:

Win more contracts

Social Value weighting of 10-20% can determine contract outcomes

Strengthen ESG

Demonstrable community impact supports ESG reporting requirements

Build reputation

Local giving creates genuine community connections

Tax efficiency

Tax treatment depends on the recipient, goods, use and the business’s circumstances. Ask your accountant.

Measuring Social Value

Effective Social Value reporting requires tracking activities that create community benefit. Common measures include:

  • Value of goods and equipment donated to local organisations
  • Number of beneficiaries reached through donations
  • Staff volunteering hours in the community
  • Spending with local and SME suppliers
  • Apprenticeships and training placements created
  • Waste diverted from landfill through donation

The challenge for many businesses is systematically capturing this data in a format compatible with procurement reporting requirements.

A conditional tax illustration

Tax example: buying goods to donate

An illustrative laptop purchase, separate from donating stock or equipment you already own

Illustration only, not a guaranteed saving. Assumes a VAT-registered company can recover all £33.33 purchase VAT, deduct the £166.67 cost against profits taxed at 25%, and make a qualifying donation without a VAT charge. You pay the supplier £200 upfront; any tax relief follows later. Ask your accountant whether these assumptions apply.

Purchase price including 20% VAT£200
VAT reclaimed (£200 ÷ 6)−£33.33
Corporation tax relief (£166.67 × 25%)−£41.67
Illustrative after-tax cost£125
£200
Paid to the supplier upfront
£200
Purchase value of goods donated

Illustration only, not a guaranteed saving. Assumes a VAT-registered company can recover all £33.33 purchase VAT, deduct the £166.67 cost against profits taxed at 25%, and make a qualifying donation without a VAT charge. You pay the supplier £200 upfront; any tax relief follows later. Ask your accountant whether these assumptions apply.

For a £120 purchase: You pay the supplier £120 upfront. Only if full purchase VAT recovery and a 25% corporation tax deduction apply, and the donation qualifies, the illustrative after-tax cost is £75. This is not a guaranteed saving or a social value score.

Check the donation, not just the school type

HMRC VAT Notice 701/1, sections 2.1 and 5.5, sets the conditions. A school name, URN or category alone does not establish eligibility. Check the receiving legal entity, its charitable status and HMRC recognition, eligible use and written evidence.

The donation must be freely given without anything in return, for onward donation or the charity’s non-business activities. Services do not qualify for this goods relief.

The limit is £100 excluding VAT per item, or £200 for household appliances, furniture including mattresses, flooring, computers including tablets, and mobile phones. Use the lower of original purchase or production cost and the cost of an identical item at donation, allowing for age and condition, excluding VAT. Monitors and other accessories are not automatically in the higher tier. Alcohol, tobacco and duty-liable vaping products are excluded. Over-limit items do not qualify for this relief.

Input VAT recovery follows normal business rules. The 2026 relief concerns VAT on the gift itself; it does not create a right to reclaim purchase VAT. Corporation tax deductions depend on the expense, trading stock or asset rules, available profits and the company’s tax position. Donating existing stock does not create a second purchase deduction.

These tax illustrations do not measure social outcomes or predict tender scores. Obtain professional tax advice before relying on them.

HMRC VAT Notice 701/1 · HMRC: equipment and trading stock

How CommuniTie helps

CommuniTie makes Social Value reporting straightforward by automating the entire process:

Find local recipients

Every school and charity is checked before its wishlist goes live.

Track all donations

Every donation logged with date, value, recipient, and beneficiary count

Clear records

Donation records you can map to the buyer's chosen framework

Postcode breakdown

See exactly where your donations went by location

Tax documentation

HMRC-ready certificates and export for accountants

Tender pack generator

One-click export of all Social Value evidence

Important note: CommuniTie helps you track and report your charitable activities in formats compatible with major Social Value frameworks. We are not affiliated with or endorsed by the Social Value Portal, SCAPE, Pagabo, or other framework owners. The interpretation and valuation of Social Value contributions remains the responsibility of the procuring authority.

Bryn Powell

Written by

Bryn Powell

Co-founder, CommuniTie · Trustee and General Manager, Miricyl

Start building your Social Value evidence

Browse wishlists from local schools and charities. Fulfill their needs, track your impact, export the evidence when you need it.

Build your Social Value evidence

Start documenting community impact today. Browse wishlists from local schools and charities, fulfill their needs, and export the evidence for your next tender.