Thought Leadership

Social enterprises, local authority councillors, corporate supporters and legal experts recently met with MPs to discuss why existing procurement legislation is failing to deliver the social value it promises – and what needs to change. Why are local authorities not making greater use of the powers they already have to procure from voluntary, community and social enterprise (VCSE) organisations? That question framed the latest meeting of the All-Party Parliamentary Group on the Social, Cooperative and Community Economy, chaired by Patrick Hurley MP. Social enterprises, councillors, corporate partners and legal experts shared evidence with MPs on the barriers preventing procurement legislation from delivering greater social value through public supply chains. The backdrop for the discussion was the Procurement Act 2023 and the National Procurement Policy Statement, which together set clear expectations that public bodies should use procurement to deliver wider social, economic and environmental outcomes. The challenge under scrutiny was straightforward: if the legislative levers already exist, why are so few councils using them effectively? Is TOMS the wrong tool? A consistent theme was the over-reliance on the Themes, Outcomes and Measures (TOMS) framework as a proxy for social value. Mark Simms, Group Chief Executive of P3, argued that TOMS is poorly suited to people-centred services. He described procurement exercises where required metrics – such as apprenticeship numbers or job creation – bore little relation to the realities of service delivery. This, he argued, disadvantages honest providers while rewarding those willing to over-promise. Sandra Hamilton, Consultant at Stone King LLP, went further, suggesting that people-focused services require a fundamentally different procurement approach. With adult and children’s social care now accounting for an estimated 75% of local authority spending, she argued that a one-size-fits-all market procurement model is structurally unfit for purpose. Bristol City Council has already acted on this insight. Councillor Sibusiso Tshabalala confirmed that the authority has moved away from TOMS entirely, replacing it with contextual measures aligned to contract size and local priorities. Capacity, risk and the guidance gap Anne Epsom, Assistant Director at Surrey County Council, offered a candid local authority perspective. She acknowledged that under-resourced councils often default to TOMS because it is readily available and familiar. Her call was for clearer, centralised guidance: a shared methodology that would reduce the burden on individual officers trying to drive best practice through lengthy internal processes. She also highlighted the persistent gap between what the Procurement Act mandates for central government and what is binding on local authorities – a distinction that undermines consistency and ambition. Levelling the playing field Terry Murphy, CEO of Sheffield Social Enterprise Network, proposed a simple structural change. Rather than requiring social enterprises to repeatedly evidence their social value through lengthy tender responses, commissioners could ask a single, binary question: is the organisation legally required, through its governance, to deliver social or environmental benefit? Verification could be as straightforward as a Companies House check, with a positive answer attracting a score. If social value is embedded in an organisation’s legal structure, Murphy argued, it should not need to be restated in every procurement exercise. Amanda Johnston of Social Enterprise Northern Ireland highlighted another underused lever: government minimum thresholds. A small legislative amendment allowing direct awards to social enterprises below this level, without challenge, could significantly increase access to public contracts at the lower end of the market. Towards honest procurement A broader cultural shift also emerged as essential. Several speakers called for a move from transactional to relational procurement, particularly in complex, people-centred services. Mark Simms reflected on P3’s role in the Covid-era Everyone In programme, where services were mobilised rapidly on the basis of trust and shared risk to safeguard homeless people from infection, often before contracts were finalised. Transparent discussions about costs, risks and delivery constraints enabled faster and more effective responses. He described this as an example of “honest procurement” – focused on problem-solving rather than contractual compliance. Sue Racster from Amey echoed this approach, describing the company’s shift towards more intentional partnerships with VCSEs, shaped by listening to what social enterprises need in practice rather than imposing top-down solutions. Accountability and transparency Finally, Councillor Tshabalala raised the issue of accountability. He proposed the use of civic platforms rooted in neighbourhood forums, enabling communities themselves to verify whether promised social value has been delivered locally. Such approaches could build on existing place-based infrastructure and give residents visibility over commitments made in their name. He also highlighted a persistent imbalance: while councils routinely require suppliers and grant recipients to report on impact, they publish no equivalent account of the social value generated through their own procurement. A standardised framework for annual social value reporting by local authorities, aligned with budget decisions, could close this gap and strengthen public accountability. What happens next The APPG will continue to gather evidence throughout April, with a report expected in late spring or early summer. The aim is to clarify what local authorities can already do under existing legislation – and to identify where further changes to law, guidance or practice are needed to unlock the full potential of social value in public procurement.

Team England is delighted to announce a new partnership with GLL, the UK’s largest charitable leisure social enterprise, as preparations build toward the Glasgow 2026 Commonwealth Games. The partnership brings together two organisations with a shared mission: helping people across England get active, discover new sports and feel part of something bigger. Through its network of Better leisure centres, GLL supports millions of visits every year, and will now play a major role in connecting communities to Team England in the lead‑up to the Games. At the heart of the partnership is the Team England National Sports Weekend, taking place on 18th – 19th July 2026 across GLL venues nationwide. The weekend will open the doors to Commonwealth sports, offering free or low‑cost sessions, coaching and taster activities for local communities. Around 300,000 people are expected to take part, giving families, young people and new participants the chance to try something different, get closer to the spirit of this year’s Commonwealth Games, and meet some Team England legends. Speaking about the partnership, Mark Osikoya, CEO of Commonwealth Games England, said: “We’re thrilled to be partnering with GLL who are an organisation that share our belief in the power of sport to bring people together. With their incredible reach into communities across England, this partnership will help more people feel connected to Team England and inspired by the journey to Glasgow 2026.” Peter Bundey, CEO of GLL, added: “GLL is proud to support Team England and to help open up Commonwealth sports to people of all ages and abilities. The National Sports Weekend will be a fantastic celebration of movement, community and opportunity. We can’t wait to welcome thousands of people into our centres this summer.” GLL has a long track record of supporting both elite and community sports, from backing the London 2012 Games bid to operating Olympic venues in legacy mode.  In 2008 it launched the GLL Sport Foundation, to help talented young athletes facing financial hardship.  To date the Foundation has provided over 35,000 awards and almost £20million worth of support to aspiring sportsmen and women.  About GLL Established in 1993, GLL is the largest UK-based charitable social enterprise delivering leisure, health and community services. Operating under the Better brand, it manages over 250 public sport and leisure centres, 114 libraries and 10 children’s centres in partnership with over 70 government, public agency and sporting body partners. It has 750 leisure members and welcomes 59 million customer visits per year. gll.org

On Wednesday 25 March 2026, leaders from across the private, public and social enterprise sectors came together at the Strand Palace Hotel to discuss and debate the future of social value, one year after the passing of the Procurement Act and the opportunities it presented to social enterprises. The Summit opened with an introduction from Nancy Park, Social Value leader at event partner PwC. She set the tone for the day, stating that “social value is no longer a footnote, it is a differentiator.” Josh Babarinde OBE MP delivered our opening keynote and praised the bold language of the government’s National Procurement Policy Statement (NPPS) and its commitment to maximising procurement spend with VCSEs. Yet he was frank about the gap between ambition and reality: over the last five years, only 4% of public sector contracts were won by social enterprises, and only around 5% of the sector engages in government contracting at all, hinting that he had some idea why that was. As a former social entrepreneur himself, he said he understood the burden of completing a 200-page pre-qualification document as a small organisation with limited resources. His verdict on the ambitions of the Procurement Act were frank: “The Act gave us the tools, the statement gave us the direction, what we now need is the political will to follow through and the cultural change needed across the economy.” The gap between policy and practice proved to be a recurring theme throughout the day. Co-creation, missions and creating a common good economy Our second keynote was delivered by Mariana Mazzucato CBE, Professor in the Economics of Innovation and Public Value at University College London, who in a sweeping speech covered everything from the social value inherent in the Notting Hill Carnival to the moon landings. The overarching themes of her speech were the importance of co-creation and lived experience in designing procurement systems, the importance of uniting across sectors to tackle the “wicked challenges” we collectively face, and the need for new economic thinking to underpin systems and create a “common good economy”. She gave a passionate argument for embedding missions as a unifying factor to bring different economic actors together around a common purpose, and also warned of the dangers of the state being too reliant on outsourcing to consultants when it should be empowered to proactively shape markets, not just fix them. But what of procurement?  Professor Mazzucato stressed the vital role of procurement in driving forward towards an economic system that works for people.  It can be a tool to work with communities to shape services and can also serve to unite sectors in a common purpose, creating new markets and directing spend towards the achievement of a particular goal - after all “the first thing they did to get to the moon was redesign procurement.” How is public sector procurement changing and what is the role of the impact economy? Crown Representative for the VCSE sector Claire Dove CBE confirmed that VCSE spend targets set under PPN01 (a procurement notice looking at how central government departments should implement the NPPS) will be subject to quarterly ministerial review and re-profiled upward if insufficiently ambitious. Both she and the Department of Transport’s Robert Vaughan stressed the importance of VCSEs registering on the new central digital platform, noting that a “lack of pipeline visibility” remains a key barrier to more VCSEs being in the supply chain. Jo Jarvis of National Highways recognised progress in more VCSEs being in supply chains, but agreed with Babarinde, who had earlier highlighted the limitations in government department VCSE spend being only recognised on direct contracting. Jarvis also that this should be extended to indirect spend as well, given that so much work is done through sub-contractors. What was apparent from the panel was that this is very much a turning point for how government departments engage with social value and in government being held accountable for purchasing from social enterprises. As Claire put it, “the conversation on how to build in social value is (now) normal.”   The final panel session of the morning looked at how recent developments, such as the creation of the Office for the Impact Economy affect and impact public procurement and social value. Dame Patricia Hewitt opened by stating that “there has been a huge amount of positive change on social value over the recent years.” However, the main focus of the discussion hinged on the reality of the challenges social enterprises are currently facing, and the limitations of the Office for the Impact Economy, with Peter Holbrook saying that it’s “focus on philanthropy and impact investment should be a means to an end rather than an end in itself.” Whilst talk of the impact economy was welcome, there is a danger that government may forget the immediate issues facing social enterprises from the impact of the rise in employer NI contributions to how social enterprises working within the NHS have once again been left out of being funded to meet a new NHS pay deal, which will make it harder for them to compete with other organisations in the health service. Caron Dunlop, speaking from her experience driving social value at Mott MacDonald, said that the Office for the Impact Economy is, “part of a long-term journey to bring change” and that theres is a need to improve contract management, saying that  “contract management is where the gaps are” when it comes to unlocking real social value. Bringing the experiences of those in the room to the front of discussions Workshop discussions highlighted three consistent themes: social value is too often treated as an add-on rather than a core contract requirement; buyers and suppliers need to agree desired outcomes upfront rather than leaving social value to be measured retrospectively; and impact measurement tools such as the TOMs framework risk shifting focus away from real outcomes and towards a tick-box exercise. Some of these insights will be included in a report by the All-Party Parliamentary Group on the Social, Cooperative and Community Economy later this year. A big thank you to our workshop chairs for facilitating the discussions and feeding back to the whole room – Clare Connolly, Gareth Hart, Alison Ramsey and Kate Welch. From rewilding to community energy – combining environmental and social impact What have beavers got to do with social value? This is one of the things we found out from Deputy Mayor of London for Environment and Energy Mete Coban MBE, who not only mentioned the rewilding of London (introducing beavers back to the city - the first two being called Justin and Sigourney Beaver...) but how effective environmental policy is fundamentally linked to improving social outcomes and the lives of disadvantaged communities who are disproportionately impacted by the climate crisis. He talked about how Hackney Light and Power, a community energy scheme, inspired Ed Miliband to create Great British Energy and how investment in renewables and in community energy can empower local communities to take control of their own energy and save money on their bills. Echoing Professor Mazzucato’s comments on the need to co-create and include communities in decision-making, Mete ended his speech by stressing that “how you do policy is important – you’ve got to bring communities into it.” A new way to fund social value Innovation like this was also on show in the final session on new ways to fund social value. Karl Harder introduced Abundance, an investment platform that allows the public to invest in local authority schemes and receive interest on their investment - a low-cost borrowing model for councils that builds trust and creates a “community of place-based citizen lenders.” Matthew Conroy concluded the proceedings by showing how Unity Trust Bank is offering an alternative to mainstream banking with its commitment to investing in social enterprises and other purpose-driven organisations. Thank you to all our speakers and to everyone who took part in the Summit, especially our partners – Fusion21, GLL, PwC and Unity Trust Bank. Big thank you to our fantastic compere, Sarah Crawley Beaumont OBE and to the Strand Palace Hotel for hosting the event. Continue the conversation and join the Better Commissioning Coalition What was clear throughout the summit was that we’re at a pivotal moment when it comes to embedding social value in public and private sector procurement. The ambition is there to use social value as a tool to improve the livelihoods of communities up and down the UK, but the practicalities of embedding it across contracts remain difficult, with too many barriers still in place for both VCSEs and the forward-thinking organisations which look to work with them. The Better Commissioning Coalition seeks to bring together a group of cross-sector experts committed to developing a programme of work that demonstrates what procurement can do when social value is placed at its core. If you’re interested in finding out more or would like to be a part of this timely, exciting new programme, visit this page and fill out the expression of interest form at the bottom.

Social Enterprise of the Year award winners Change Please tell us how they’ve achieved growth and impact during nearly eleven years in business. You can’t miss the headquarters of Social Enterprise of the Year award winners Change Please, the coffee company that tackles homelessness. Outside the commercial unit they occupy on a small trading estate in Peckham in south London is a huge pink bus with ‘PROVIDING ACCESSIBLE DENTAL CARE’ emblazoned across it. This was the result of ‘Smile for Change, ’ a partnership with Colgate in 2021, as 40% of rough sleepers endure severe mouth pain. The bus houses a mobile dental clinic (fitted out by fellow social enterprise Community Dental Services). “What’s important is putting yourself in their shoes – what's the benefit for them?” Change Please’s founder and CEO, Cemal Ezel, says when asked how he establishes these kinds of partnerships with household name brands (Virgin and Mastercard are some others). “If you position your offer in line with that benefit, it’s a shortcut to them wanting to work for you. Think big and align your values with theirs to ensure it’s a partnership that’s not going to cause mission drift,” is his tip. As a social enterprise that has been in business for nearly 11 years and works in eight countries, Change Please has proved to be a resilient and successful business.  In that time, they’ve trained 1167 people as baristas (amazingly, more than 100,000 hours of training), giving them a route into work whilst also ensuring all the wraparound support necessary for a stable life is there. This can include help with accessing food banks or financial services, therapy, or housing advice. Amongst their formerly homeless graduates are refugees, care leavers and ex-prisoners. Not all of them fit the image that comes to mind when we first hear the word ‘homelessness’ – for some, it’s hostels or sofa surfing – but 42% of training graduates have been on the streets. For all the amazing work they do, we visited their HQ to find out how it felt to win in the Social Enterprise of the Year category at the UK Social Enterprise Awards last year. Having been shortlisted several times before, Cemal was shocked to hear their name announced on the night and, for the first time, hadn’t written notes just in case they did – but says the win has already benefitted the business. “Winning the award has already been an incredible bonus for us because lots of the Buy Social Corporate Challenge partners have already reached out, and we’re meeting with them to see how we can partner with them in the longer term,” said Cemal. Change Please already supply coffee to many businesses, such as the David Lloyd leisure centres, Avanti West Coast trains and the Department of Work and Pensions. How have Cemal and his team built such a resilient business? “First and foremost, forget you’re a social enterprise. How good is your product in the open market and then, as a bonus, how does it do good? We believe only 4% of organisations or individuals go out of their way to compromise on price, quality and convenience, so if you can focus on making your product as good as it potentially can be and see your social impact as a bonus, you’re going to win all day long.” Other organisations similar to Change Please have been established in their wake, something Cemal says he is pleased to see. The competition has motivated them to pivot with new innovations, and the next step is the development of an AI solution to homelessness in partnership with the Cabinet Office. The app (currently being trialled) signposts to different kinds of support available and allows users to upload official documents in 55 languages, assisting with a variety of required bureaucratic actions. If moving with the times is a sign of a business determined to endure, the longevity of one of the UK’s most visible social enterprises looks certain to be extended still further. changeplease.org

Welcome to the Social Value Leaders' Summit 2026! We have a packed agenda today, designed to bring to light key developments in social value through expert-led panel discussions and speeches. A key part of the day will be this afternoon's roundtables, which will provide an interactive forum for attendees to share their own experiences. Here's our agenda for the day: 9:45: Introduction by Nancy Park - Social Value Leader at PwC 9:50 - 10:00: Our facilitator for the day, Sarah Crawley Beaumont OBE, will run through the planned schedule Procurement Act year one - from promise to practice 10:00 - 10:15 Josh Babarinde OBE MP Josh will look at what's changed one year after the passing of the Procurement Act in our opening speech. Keynote speech - the common good economy 10:15 - 10:45 Professor Mariana Mazzucato - Professor in the Economics of Innovation and Public Value at University College London Professor Mazzucato will ask the question of what does ‘good’ looks like in economics and whether you create social value without a sense of the common good? Mariana advises policy makers around the world on innovation-led inclusive and sustainable growth and has been listed in GQ’s Top 50 most influential people in Britain, Wired’s 25 leaders shaping the future of capitalism, and by the New Republic as one of the 3 most important thinkers about innovation. The national picture – government's vision for social value 10:30 - 11:15 Claire Dove CBE - Crown Representative for the VCSE sector Jo Jarvis - Procurement Director, National Highways Robert Vaughan - SME and VCSE Champion for the Department of Transport Jo Pritchard OBE - Social Enterprise UK Board member Find out more about the government's vision for social value from the VCSE Crown Representative, Claire Dove. You'll also learn how two leading social value practitioners are responding to the new procurement framework and working with VCSEs. The discussion will provide essential insights into emerging policy frameworks and strategic priorities, and will also explore whether the ambition and enthusiasm for social procurement described in last year’s Procurement Act has motivated procurement teams at national and local levels to enthusiastically target contracts offering more social value. 11:15 - 11:30: COFFEE The impact economy and public procurement 11:30 - 12:15 Dame Patricia Hewitt - Former Secretary of State for Trade and Industry Caron Dunlop - Head of Social Value, Mott MacDonald Peter Holbrook CBE - Group Chief Executive, Social Enterprise Coalition Gayle Monk - Anthony Collins Solicitors (Chair) This expert panel will look in depth at how procurement can be used as a tool to drive the impact economy - a timely discussion following the launch of the Government's new Office for the Impact Economy. 12:15 - 13:00: LUNCH Roundtables 13:00 - 13:40 - Rountable 1: Barriers to embedding social value – what's getting in the way? 13:45 - 14:30- Roundtable 2: Accountability gaps – why does social value get lost after contract award? Attendees will be split into groups for discussions based on the above topics. It's a chance to share your own experiences of social value, point out examples of best practice and openly discuss the barriers faced in embeddeding social value across commissioning and procurement. Your workshop groups will have been allocated to you at the start of the day and correspond to the stickers on your name badge. 14:30 - 14:45: COFFEE From barriers to breakthroughs - responding to what the room told us 14:45 - 15:15 Clare Connolly - Fusion 21 Gareth Hart - Plymouth Social Enterprise Network Alison Ramsey - Scape Kate Welch - Social Enterprise Acumen The chairs of the roundtables will feedback key findings from both sessions. Afternoon keynote 15:15 - 15:25 Mete Coban MBE - Deputy Mayor of London for Environment and Energy New ways of funding social value 15:25 - 16:00 Matthew Conroy - Head of Impact Propositions, Unity Trust Bank Karl Harder - Director, Abundance Jovan Owusu-Nepaul - Head of Public Affairs, Social Enterprise UK Local authorities are getting creative in finding ways to fund community projects that create social value by borrowing money from local people and paying them interest.  Find out more in this, our final session of the day. 16:00 - 16:15 - Closing Remarks 16:15 - 17:00 - Networking This agenda is subject to change The Social Value Leaders' Summit is supported by:

Be part of the change makers driving a holistic approach to public procurement. Making public procurement a force for good We are at a turning point in history where mission-driven procurement needs your expertise. Join the Better Commission Coalition for the benefit of your organisation and the future of social value. A landmark opportunity At Social Enterprise UK we have been championing social value for the last 15 years. We are proud of the leading part we played in the Social Value Act in 2012, and in continuing to make the case for it through groundbreaking research and advocacy. An important recent development is the National Procurement Policy Statement (NPPS), published in February 2025, which recognises the power of public procurement and the potential of social value. It promises a mission-based approach that is ‘more joined up’ and ‘pushes power out to communities’. There is huge potential in taking this approach if social enterprises, delivering better health outcomes, good work, and stronger communities, are enabled to play their part. The Procurement Act and the NPPS are both positive starting points, but we need the change carried out day-to-day through thousands of commissioners nationwide, with government driving cultural change over time. Join the Better Commissioning Coalition To take this vision forward, we are seeking to bring together a group of cross-sector experts committed to developing a programme of work that demonstrates what procurement can do when harnessed to the levers of government. How? We'll do this by demonstrating what better commissioning can achieve through a combination of research, stakeholder engagement and publications, focusing on three key areas that align with government policy: economic growth, local impact, and better work. Join us if you're: A corporate, driving social value through your supply chains A public body committed to commissioning services that maximise social value A social enterprise or charity delivering services to the public or private sector which demonstrates the additional value that comes through working with the VCSE sector The Better Commissioning Coalition can help amplify your work, position you as a driver of change to government, and showcase you as an organisation driving real transformative change in the UK's commissioning and procurement landscape. Why be part of the coalition? Influencing and engagement Exclusive engagement with key social value stakeholders: Ministers, departmental officials, local authorities, political and public sector leaders Profiling opportunities at high-profile events such as the Social Value Leaders' Summit Guaranteed participation and contribution in at least three roundtables with public and private sector leaders across the country Shaping evidence delivery Share your expertise and contribute to content development, from reviewing findings to developing outputs for the programme Position your organisation as leaders in public procurement, through best practice examples featured in case studies and thought leadership pieces Co-design solutions in key thematic areas: policy, leadership & culture, measurement and implementation Peer to peer expertise exchange Knowledge exchange with coalition partners by attending regular briefings to identify key trends and share intelligence on better commissioning Communications and events Dedicated blogs, op-eds and written communication for agreed key target media Opportunity to provide quotes/reactions when the Coalition addresses key issues and topical news stories Brand recognition on all outputs Headline sponsorship of the Social Value Summit, the UK’s leading leadership conference on Social Value, bringing together 150 leaders from across the public, private and VCSE sectors The Better Commissioning Coalition is supported by Fusion21 and GLL Get involved If you'd like to take part and find out more, fill out the below form and we'll be in touch!

Nearly £50m went out to small and medium sized charities and social enterprises in the shape of grants and loans. But with the Growth Fund closed, is the finance gap back? We look at the legacy of this pioneering fund and what has followed it. For years, social enterprises complained that there was a missing middle when it came to getting investment. Lots of startup grants or loans at the beginning of their journey were available, and plenty of finance was on offer for organisations that had grown to a certain size with a healthy turnover. But for those beyond startup with proven social impact and more modest revenue that were looking for investment to grow? Not so much. As long ago as 2017, SEUK’s ‘State of Social Enterprise’ report identified that ‘social enterprises remain ‘finance-hungry’ and ‘access to the right type of finance at the right time is still a key barrier (or enabler) of success.’ The report recommended that social investors and the wholesalers that build the market, should focus on smaller, unsecured and more patient finance, but also on products that meet the needs of social enterprises – for working capital, cash flow pressures and income diversification. The news that a final evaluation of the Growth Fund - which offered blended finance (a mix of grant and loan) of up to £150K to smaller organisations - showed that it had helped to fill a crucial gap in the social investment market is therefore very good news. The Growth Fund £50m was up for grabs, with £22.5m coming courtesy of National Lottery players. The remainder came from Better Society Capital, who contributed £27.5m from dormant assets it had received: unclaimed amounts in accounts that banks were unable to reunite with owners. The programmme was delivered by Access, which worked with 15 social investors to manage deployment. Between 2016 and 2023, 780 investments were made in 580 voluntary, community and social enterprise organisations (VCSEs), around half of which had never applied for investment outside of grants before. As the finance on offer was blended (some grant, some loan), the evaluation report concludes that it was the free money on offer (the grant) that was ‘a key motivator’. The Growth Fund was successful in plugging the ‘missing middle’ gap of finance available to small and medium sized VCSEs. The average investment was £67K, and the median annual income of funded organisations was approximately £177K, with 54% of funded VCSEs having fewer than five full-time employees. Only 12% of those funded had more than 25 full-time staff. The money was typically used for growth: scaling up existing activities, asset acquisition, diversifying income and staff development, but also for reducing reliance on grants and boosting reserves. Recipients of the money were surveyed, with 29% responding. Of those surveyed, 50% of VCSEs reported significant improvements in financial resilience. Over 70% of VCSE survey respondents indicated the social investment increased their overall social impact and the number of beneficiaries they supported. Aside from helping to grow VCSEs, the Growth Fund was also successful in growing the social investment market: 70% of those surveyed applied for further investment after their Growth Fund loan and 80% would recommend social investment to other VCSEs. Access distributed funds to various regional social investors and although experienced social investors delivered seven of the resulting social investment funds, 10 were delivered by organisations with no prior loan book management experience. Half of those are continuing with blended finance, and half are no longer active. The legacy The Growth Fund set in motion a range of further blended finance programmes, including Access’s £50m Enterprise Growth for Communities programme (the successor to the Growth Fund, backed by £20m in grants from dormant assets money), which continues to offer simple blended finance products that are largely unsecured. More recently, Access has also been allocated a further £87.5m of dormant assets money, £41m of which is intended for blended finance funds. “The Growth Fund was instrumental in establishing the role that blended finance can play in supporting smaller charities and social enterprises to access the finance they need,” said Neil Berry, Director of Programmes at Access. “Crucially, the Growth Fund was not a one‑off intervention but the starting point of a deliberate pipeline of support, ensuring there was no drop‑off or gap in the availability of appropriate finance. It has been the springboard for much of our subsequent work - at least half of the finance we support charities and social enterprises with is in the form of small-scale unsecured debt.” Please note Access funds social investors and intermediaries, not charities or social enterprises directly. If you are a charity or social enterprise looking for social investment, visit Good Finance.

The Labour government’s 2024 election manifesto contained a commitment to ‘double the size’ of the co-operatives and mutuals sector. Following on from this, in November of 2025, the Department for Business and Trade launched a call for evidence on business support for co-operatives and non-financial mutuals. This was an opportunity for us to feed directly into government thinking around diverse business models, and to ensure gaps in support provision, finance, and understanding are presented to and acknowledged by the Department. Our consultation response focuses on the immense impact made by social enterprises, many of which are co-operatives, mutuals and employee-owned - the way they are driving economic growth, reducing inequalities, and creating better working environments. Particular attention is given to the vital role these types of organisations play within the NHS and the transformative impact they are having on patient care and staff wellbeing while retaining financial responsibility. We also look in depth at the challenges faced by these businesses when it comes to accessing finance and support and the gaps in understanding which are holding them back. Here are some of the key points mentioned in our response: Economic and social impact Sector Scale: Mission-led businesses (co-ops, mutuals, and social enterprises) make up 5% of UK businesses, accounting for 10% of GDP and creating around 4 million jobs. Growth Potential: If the proportion of social enterprises and co-ops within the UK economy grew from 3% to 12% of GDP, it would increase UK investment by £14 billion. If all businesses were mission-led, UK GDP could be 7% larger. Job creation: Consumer co-operatives create more jobs by turnover than average enterprises in the UK. Labour productivity in worker co-operatives is around 8-12% higher than comparable traditional firms. Resilience: 82% of co-operative start-ups are trading after 5 years, compared with just 40% of UK companies overall. Public services and healthcare NHS contribution: The 60 largest healthcare social enterprises, most of which are classified as public service mutuals, deliver £2.4 billion in services annually, covering a third of community health services and providing urgent care for two-thirds of the population. Quality: These organisations are more likely to receive "Good" or "Outstanding" CQC ratings than traditional NHS trusts. Efficiency: Research shows that social enterprises are leaner and more efficient than NHS Community Trusts, with lower staff sickness rates, lower spend on bank and agency staff, and lower overheads. Diversity and inclusion Leadership: 24% of the top 100 co-ops are led by women, compared to just 9% of the FTSE 100. Pay equity: The gender pay gap in co-ops is 7.5%, significantly lower than the UK average of 12%. Workforce: Around 65% of the social enterprise workforce is female, and 22% are from minoritised ethnicity backgrounds. Barriers to entry and growth Awareness gap: There is a lack of understanding of co-operative and mutual models among business advisors, investors, and the general public. This translates into poor, unsuitable advice for those wishing to start or scale co-operative business models. Financial hurdles: 68% of social enterprises struggle to access grant funding; many find traditional bank finance (like overdrafts) difficult to secure because banks don't understand their risk profiles. Lack of awareness in government: Public service mutuals are often "forgotten" in government decisions around funding and support, creating unnecessary strains on finances, capacity, and services. For example, they were initially excluded from pandemic bonuses and National Insurance relief granted to public sector counterparts. This creates perverse incentives, discouraging the type of organisations that consistently deliver the kind of care the NHS 10-year plan is seeking to deliver. Recommendations Joined-up government working: Despite considerable cross-party support and the ongoing growth of diverse businesses themselves, government action has been slow and in need of joined-up strategy across key departments. The Government has committed to doubling the size of the co-operative and mutual economy, and there is now also an Office for the Impact Economy. The Government must recognise that these terms overlap, and that policy decisions must take into account co-operative, social enterprise, and mutual models of ownership, and how these can coexist. Legal and fiscal frameworks: Ensure legal and fiscal frameworks do not, even unintentionally, discriminate against diverse businesses. Bolster the capacity of regulators like Companies House to remove barriers for co-operatives wanting to start or scale Routes to market and the public purse: The Procurement Act consultation should lead to joined-up integration of support for VCSEs in public procurement, and strengthening the Social Value Act can expand public/social partnerships and secure greater value for money from existing public budgets. Access to finance: DBT and DCMS, through ensuring their existing programmes are open to diverse businesses, can expand support for start-ups, growth, and replication, and enterprise development. Sector leads and champions: Diverse business model sector leads and champions need to be better embedded across government departments to strengthen awareness and coordination in order to highlight and build upon best practice. CLICK HERE TO READ OUR FULL RESPONSE TO THE CONSULTATION