The Procurement Act 2023 and Social Value: What’s changed?
The introduction of the Public Services Act 2012 in 2013 brought with it consideration for social, economic, and environmental impacts in areas where services are delivered during the evaluation of public sector tender responses.
Since then, Social Value has appeared more frequently within tender questions, reinforced by the Procurement Policy Note (PPN) 06/20 in June 2020 requiring all central, executive agencies, and non-departmental public bodies to apply a minimum of 10% weighting for Social Value in tender evaluations.
The Procurement Act 2023 introduced in 2025 has updated and, in many ways, solidified the role of Social Value in public sector tendering.
With this said, what are the key changes you need to consider before embarking on a public sector bid?
Legal Duty to Maximise Public Benefit
Where the 2012 Act introduced Social Value as a consideration, the updated 2023 Act has presented contracting authorities with a legal duty to factor Social Value into evaluations and contract awards.
What does this mean for you?
As Social Value is now formally included within all public sector tenders, understanding Social Value and identifying realistic and achievable commitments you can make and deliver on is essential when planning and submitting tender responses.
Shift from MEAT to MAT
The 2023 Act has also shifted the evaluations themselves, away from the Most Economically Advantageous Tender (MEAT) that was favoured previously, to the more balanced Most Advantageous Tender (MAT) system.
Where MEAT focused more heavily on price as the deciding factor in tender award decisions, MAT enables social, environmental, and economic benefits to be given a greater weight during evaluations.
What does this mean for you?
Where many providers may have been at a disadvantage where lower prices were not sustainable for their business, the heavier focus on quality and Social Value featured in the MAT system makes for an overall fairer playing field, where SMEs and VCSEs can compete with larger providers.
The National Procurement Policy Statement
Published in February 2025, alongside the 2023 Act, the National Procurement Policy Statement outlined the current, government-wide priorities which public buyers are now legally obliged to regard, including driving economic growth, delivering social and economic value, and ensuring high commercial standards with a specific emphasis on spending more with SMEs, charities, and social enterprises.
What does this mean for you?
This shift in focus makes now the most accessible time for smaller businesses to have a fair chance of competing to win public sector work, supported by government priorities and legislation.
Greater Transparency and Inclusion of SMEs and VCSEs
The 2023 Act has simplified the procurement process and enable increased accessibility for SMEs and VCSEs, removing barriers to entry and making participation easier.
Through centralised registration, faster payment terms, and an increase in inclusive frameworks as a procurement vehicle, participation in the first place has changed.
What does this mean for you?
Changes to the procurement process has made accessing and tendering for public sector opportunities easier and more straightforward for SMEs and VCSEs, again signifying that this is the best time for smaller companies to compete for and win public sector work.
Read more about Social Value in our other blogs here and here
