Thought Leadership

Addressing the cost-of-living crisis is the right thing to do, but an increase to the National Living Wage is going to be challenging for some social enterprises, writes Head of Public Affairs Jovan Owusu-Nepaul. After much anticipation, Chancellor John Healey delivered his first budget with Prime Minister Andy Burnham at the helm. After a tumultuous year, the British economy now finds itself moving towards greener pastures, with our economy outperforming many of our G7 counterparts. However, we all know that this set against the uncomfortable backdrop of Russia’s illegal invasion of Ukraine and the on-going war in Iran. At Social Enterprise UK, we recognise the impact these challenges are having on our members. Social enterprises are rooted in their communities, trading to deliver social and environmental good, and often providing essential services where they are needed most. It is welcome that the Government has recognised the need to address the cost-of-living crisis and provide greater certainty for businesses. Measures to support small and independent businesses through business rates relief will be welcomed by many of our members. However, given the substantial social value social enterprises deliver, we would have liked to see further progress towards extending the tax reliefs available to charities to social enterprises. We hear, listen, and support members in their calls for the government to do more. Following your feedback, we recently wrote to the government asking them to restore social value weightings to contracts of £1million or less (relating to PPN 026).  We also suggested extending business rates relief for social enterprises, and the explicit recognition of social enterprises as part of the government’s growth strategy. This budget shows there is still much more to do. We will continue to advocate, campaign and demand the Treasury does more to support social enterprises.  We know that many members will have concerns about increases to the National Living Wage. Fair pay will always remain our priority; however, many social enterprises who deliver vital public services often operate within fixed, multi-year government contracts that do not adequately account for rising employment costs. The Government must ensure that these organisations are properly supported to pay their staff fairly without compromising the services on which communities depend. This Budget demonstrates that there is still more to do for the government to aptly recognise the economic growth social enterprises represent and to ensure our sector has the support needed to thrive. Social Enterprise UK will continue to work with members, MPs, civil servants and the Government to champion our sector, advocate for meaningful policy change and ensure social enterprises are fully recognised as part of the UK’s growth and public service ambitions. Image credit - Simon Walker / HM Treasury

Grid access, funding and revenue certainty are holding community energy back, an evidence session for the Social, Cooperative and Community Econonmy heard. Although many community energy social enterprises have been patiently plugging away for many years to create locally owned projects that yield a range of social and environmental benefits, they're now at the centre of a major government initiative. Established in law in 2025, Great British Energy (GBE) will invest more than £8.3bn over this Parliament to accelerate the country's transition to clean power. GBE's Local Power Plan aims to "revolutionise the UK's local and community energy sector". There are more than 600 community energy organisations in the UK, and more than half are community benefit societies, co-operatives or community interest companies, according to Community Energy England. Some 140 manage a community benefit fund, distributing almost £4m. They include Ambition Community Energy CIC, which, over seven years, built the tallest onshore wind turbine in England, in Lawrence Weston, near Bristol. The profit it makes from selling energy to the grid is being reinvested in the community, including helping local people experiencing fuel poverty. It will also support an Energy Learning Zone, the base for a skills academy for people aged eight to 80. As well as a just transition to clean energy, it was this kind of social value that attendees of the latest meeting of the All-Party Parliamentary Group for the Social, Cooperative and Community Economy wanted to see recognised. Chaired by Patrick Hurley MP, the evidence session brought together community energy groups, investors and national bodies, alongside Great British Energy and the Department for Energy Security and Net Zero. Attendees set out the obstacles holding the sector back, and their ideas for overcoming them. Connecting to the grid Ailsa Clark, founder of InspirAlba, a Campbeltown social enterprise that helps rural communities in Argyll and Bute build sustainable businesses, said the cost of joining the grid queue is a major barrier. To secure a connection, developers often have to put money down early, including financial security against the cost of network works, which they can lose if the project is cancelled. "Most community or municipal-owned developments are unable to take the risk of putting a big chunk of money down well in advance to get themselves in the queue," she said. Helen Seagrave, Director of Local Energy at Great British Energy, responded by saying that GBE is looking at how it can de-risk community projects, including by acting as a partner in them. Funding volunteer-led organisations Many community energy organisations are run by volunteers, and the Local Power Plan mainly funds individual projects rather than the organisations behind them. "I don't think we're going to get to scale if we're relying on the goodwill of fabulous people to give up their spare time," said Michaela Cryer, Managing Director of Younity (a partnership between Midcounties Co-op and Octopus Energy). "We need more paid support to really get these projects moving." Even established groups are stretched. Afsheen Kabir Rashid, CEO of Repowering London, said the co-op relies on grants for 90% of its income. "It's very hard to manage an enterprise based on project funding," she said. Revenue certainty To raise money through community shares, bonds or loans, projects need a reliable long-term income. The feed-in tariff used to guarantee that, but it closed in 2019. Its replacement, the Smart Export Guarantee, only requires suppliers to pay something above zero, and Contracts for Difference, which give large developers a guaranteed price for 15 years or more, exclude projects under 5MW. Deals with suppliers are short term too. "From a supplier's perspective, the market is only there for three years," said Barbara Hammond, CEO of Low Carbon Hub, who described the lack of revenue certainty as the biggest barrier. The difference certainty makes is clear in Kintyre. Fyne Energy, where Clark is a director, developed and built three community-owned turbines with a combined capacity of 6.9MW. They were projected to earn around £750,000 a year for local housing, employability and community projects, but are now making £1.2m to £1.5m a year. The turbines still receive feed-in tariff payments, which give them a guaranteed income floor, and they also sell their power. When wholesale prices soared during the energy crisis, that extra revenue went straight to the community. Measuring community wealth, not just megawatts Attendees argued that the Local Power Plan should be judged by the community wealth it creates, not just the megawatts it adds. Hammond said the plan is there "to scale that impact, not to scale the input". Matthew Vickers, CEO of Community Energy England, said community energy brings together "two streams of value that not many places do": benefits for the place, and for the energy system, because local generation can reduce the need for new grid infrastructure. The clearest message was that community energy should be treated as part of Britain's economic and social infrastructure, not simply another way of generating electricity. That means patient capital, investment in local organisations as well as installations, community ownership of larger schemes, public procurement that values social impact, and a clear role for Great British Energy. The evidence will feed into the APPG's inquiry, including the community energy chapter of a report due in 2027.

Survey respondents give strong backing for government supply chain diversity and reserving contracts below £1m for VCSEs and SMEs. Social enterprises also think the new definition of social value is too narrow. When we first published our response to the government's social value changes in August, we received a lot of feedback on social media, particularly on a post by our CEO Peter Holbrook. It was clear that members and stakeholders felt very strongly about this, and, as the national voice for social enterprise, we needed to represent those views to government. To clarify those views, we launched a survey. Open for a week, the survey had 95 responses; 66% of respondents told us they were social enterprises, 16% identified as charity or VCSE, 4% were cooperatives, and 14% of responses were from other kinds of organisations. More than two thirds of respondents bid for public sector contracts (70%), with a majority bidding for contracts under £1m (55%). The social value weighting for contracts for £5m or more doubled to 20% recently, but just 9% of respondents bid for these. The most common responses to the social value changes we initially received resulted in four main asks. We included these in the survey to ensure our stakeholders thought we'd got it right. They were: Reinstating supply chain diversity (listed in PPN002), as many social enterprises benefit from being subcontracted by suppliers winning larger contracts. Subcontracting transparency. Independent KPI verification, so that promises made on social value creation were kept. "Suppliers should not win contracts on promises nobody checks," wrote survey respondent Heidi Fisher of Make An Impact CIC,. £1m contracts or less offered to VCSEs and SMEs first. This was also reflected in feedback we got from the survey. DHU Healthcare, which provides a range of NHS services in the Midlands, wrote "Organisations such as Community Interest Companies are established to create community benefits and reinvest surpluses for social purpose. Procurement should provide a proportionate way to recognise the underlying business model and the social value it generates, alongside measurable contract-specific commitments." The four asks got strong support in the survey. We asked respondents to rate them from 1-5, with 1 being not important and 5 being essential. The average scores are listed below: New social value definition too narrow The survey also surfaced an additional recommendation for government. Whilst recognising that job opportunities and skills creation were important (and indeed, plenty of social enterprises are set up specifically to offer this), the new definition of social value was too narrow for our respondents. Several noted that it did not align with the Public Services (Social Value) Act, which requires commissioners to offer contracts producing economic, social and environmental benefits to communities. Mastercall Healthcare, which provides NHS services in the Northwest of England, articulated this very simply: "Social value should be defined broadly enough to recognise the full contribution organisations make to the communities they serve. In health and social care this should include reducing health inequalities, improving population health and wellbeing, environmental sustainability, community engagement and co-design, local reinvestment and support for vulnerable or underserved communities. Local communities should also have a meaningful role in defining what social value and local benefit mean to them." When we asked respondents if social value should be defined more broadly than jobs and skills, 73% said yes. What happens next? We’ll be delivering your recommendations to the government, along with a letter to the Cabinet Office, which has been signed by social enterprises that paticipated in the survey. The letter was addressed to Minister for the Cabinet Office Louise Haigh MP (pictured above with PM Andy Burnham and Business Secretary Jonathan Reynolds) and Mark Ferguson MP. Picture by Lauren Hurley / No 10 Downing Street, published under a Creative Commons licence.

Atif Choudhury, co-founder of award winning social enterprise Zaytoun and CEO of Calling All Minds has been awarded an honorary doctrate from SOAS for his substantial contribution to social enterprise and development. Zaytoun, which took home the Consumer Facing Social Enterprise of the Year Award in 2025, has been supporting the resilience of Palestinian communities through fair trade for over 21 years with all profits being reinvested to supporting those producers living under occupation in the West Bank. Calling All Minds is a newer social enterprise which provides neurodiversity and disability inclusion support through specialist human expertise and purpose-built accessibility technology.  Commenting on his honorary doctrate, Atif said: “For me social enterprise was never meant to make capitalism look kinder. At its best, it asks a much harder question: who is the economy actually working for? That question has run through much of my own work, from creating fairer routes to market with Palestinian farmers through Zaytoun CiC to removing barriers to participation for disabled and neurodivergent people through Calling All Minds. Inequality and exclusion are not inevitable. They are shaped by choices, systems and structures,C which means we can make different choices and build different systems. Social enterprise challenges us to build an economy rooted in community, where value is measured not only by what we extract, but by what we co-produce and what we enable people and communities to become.” “The future belongs to leaders who understand that inclusion is not about inviting people into old systems. It is about changing the systems themselves.” Find out more here

Are you developing solutions to the causes or consequences of homelessness? This programme could be for you.   This free 9-month programme from the School for Social Entrepreneurs is designed to support charities, social enterprises and community organisations tackling housing insecurity.   It’s designed to help organisations build resilient business models with a focus on:  generating trading activity  building confidence  strengthening networks  Participants will benefit from diagnostic support, tailored capacity-building sessions, peer coaching, expert support and opportunities to connect with potential customers and partners in the housing market.  There are also grants of either £7k or £10,000 to help you put learning into practice.  If your work impacts someone’s ability to find and maintain a stable home, then find out more about this programme on our website.  Applications close on 16th November 2026 at 12pm.  Sign up for an online information session and find out more here The programme is delivered by School for Social Entrepreneurs in partnership with Computershare Investor Services PLC. Computershare operates The Deposit Protection Service (The DPS), one of the government-approved schemes that protect tenancy deposits for landlords and tenants in the private rented sector in England and Wales.    

Has the government got it right on social value? Fill in our short survey to tell policy makers what you think. The government has recently announced changes to the way it spends money on goods and services to create social value. We really do welcome Andy Burnham’s emphasis and dedication to social value, but alongside good policy changes such as doubling the social value weighting to 20% on contracts of £5 million or more, there are also some concerning aspects. There’s a new £1 million threshold below which social value requirements no longer apply, and the definition of social value itself has also been restricted to only look at jobs and skills. Social enterprises are set up to deliver social value; it’s in their DNA.  This narrowing of its definition and limitation of its scope could have a detrimental impact on those organisations who are best placed to deliver the PM’s promise of ‘growth in every postcode’. Let's show government why we must stand up for social value! Government has said it will publish technical guidance in autumn 2026 ahead of implementation in January 2027, and has left the door open for further evidence, which is why we need to hear what you think. We now have a narrow window of time to come together as a movement of businesses with social value at their heart to share our concerns and campaign for change. We’ve put together a short 5-10 min survey and will use responses to form a set of recommendations for the UK government while the guidance is still being finalised. Please complete the survey before 5pm on Monday 21 September. We'll publish the recommendations once all responses have been collated and considered. TAKE THE SURVEY AND SHARE YOUR THOUGHTS AND EXPERIENCES Please note this survey is now closed Your responses will also form the basis of an letter to the PM, which we will open for signatures later this month. Let’s stand up for social value so that it lives up to its potential!

We’re proud to reveal the shortlist for the UK Social Enterprise Awards 2026! The Awards are a celebration of the pioneering social enterprise businesses which are transforming lives and empowering communities across the country. This year, we’re delighted to be co-producing the Awards with Co-operatives UK, recognising the vital role co-operatives have in shaping a fairer, more inclusive economy Across 15 different categories, the shortlist shows the strength, diversity, resilience and innovation of the social enterprise and co-operative movement across the economy. Whether it’s through delivering innovative public services, creating jobs and opportunities, embedding environmental sustainability into their work, breaking down barriers for marginalised groups, or selling outstanding products to the public - every one of the shortlist shows that another way of doing business is possible. We’ve also introduced a new category for 2026, The Co-op of the Year Award – shining a spotlight on the nation’s leading co-operative businesses. CLICK HERE TO VIEW THIS YEAR’S SHORTLIST Commenting on the announcement, Peter Holbrook our Chief Executive said: “Businesses usually only make headlines when they’ve been behaving badly or profiting at everyone else’s expense, so every year it’s a joy to celebrate those that are quietly getting on with the job of building a better Britain and providing a practical path to an economy that puts people and planet first. The UK Social Enterprise Awards celebrate the organisations focused on making communities healthier, happier and more environmentally friendly. They’re an inspiration to anyone looking for examples of ways to do business better.” ‌Rose Marley, CEO of Co-operatives UK, added: "It's brilliant to see so many outstanding co‑operatives on this year's shortlist, proof of the huge contribution member‑owned businesses make to communities right across the country. With our new Co‑op of the Year Award, we're able to shine a spotlight on that impact like never before. And as we prepare to bring the Awards to Manchester's co‑operative quarter, the birthplace of the co‑operative movement, it feels only right that we're celebrating the businesses carrying that legacy forward today." Taking the Awards to Manchester The winners will be announced at a ceremony on 12 November at New Century Hall, in the centre of Manchester’s co-operative quarter. This will be the first time the Awards have taken place outside of London, and will mark the social enterprise movement's future in a city steeped in its history. In 1844, just up the road in Rochdale, workers in the cotton mills pooled their resources to set up the first-ever consumer co-operative to combat the low pay and exploitative conditions of Victorian Britain. Now, in the spirit of these Rochdale Pioneers, we’ll be celebrating how far this movement of business for good has come. The theme of the Awards is ‘All Together Now ’, capturing the spirit of unity and co-operation that sits at the heart of the social enterprise community. Tickets are currently on sale, with members of Social Enterprise UK and Co-operatives UK being able to save nearly 50% in comparison to the full price tickets. Click here to get your tickets

We’re delighted to reveal the shortlist for the UK Social Enterprise Awards! Co-produced by Social Enterprise UK and Co-operatives UK, the Awards are a celebration of everything that makes the social enterprise and co-operative movement so special. They showcase the strength, impact, diversity and innovation of these businesses which are changing lives, embedding sustainability into their operations and empowering communities up and down the country. The winners will be announced on 12 November in Manchester at New Century Hall in the heart of the city's co-operative district. Get your tickets to find out who's won and celebrate the achievements of this movement of business for good. CLICK HERE TO GET YOUR TICKETS Meet this year's shortlist: UK Social Enterprise of the Year Sponsored by supporting business Keegan & Pennykid The overall award for a social enterprise that has a clear vision, excellence in impact, and that has demonstrated and promoted social enterprise beyond the sector. Belu Water Breadwinners Community Dental Service CIC Flexible Childcare Services Scotland Highland CIC Locala Community Partnership CIC/Locala Health & Wellbeing Myddfai Trading Company Resurgam Trust Standing Tall Unicorn Grocery One to Watch Award Sponsored by supporting business Bunzl Cleaning & Hygiene Supplies The One to Watch Award is for a start-up social enterprise. Key to winning this award is an ability to clearly articulate their future vision and how they are going to achieve it. Clean Slate Clinic Creative Arts Therapies Space CIC Growing Me CIC Jaskulla Mentoring Ride Recycle Repeat Ltd Silent Cuts The Hull Community Pub Society / The New Clarence Prove It: Social Impact Award Sponsored by supporting business Freshfields For a social enterprise that can truly demonstrate and communicate their impact with their stakeholders. Boss and Brew Academy Breathe Arts Health Research Connection Crew + Stitch Firstport Migrateful The Skill Mill Limited ‘Buy Social’ Market Builder Award Sponsored by social enterprise champion Corps Security For a social enterprise, public sector body or private sector organisation that has demonstrably made efforts within its own organisation and remit to create more opportunities to buy from social enterprises. Bunzl Cleaning and Hygiene Supplies Compass UK&I powered by Foodbuy Coop Freshfields Lyreco UK Ltd Mitie Limited The Datakirk Willmott Dixon Social Investment Deal of the Year For an organisation that has been part of a great investment deal in the last 12 months that has helped the social enterprise to grow or the movement as a whole to develop and flourish. Forest Schooling UK & Charities Aid Foundation Getting Clean & Postcode Innovation Trust (PIT) Micro Rainbow CIC & Esmee Fairbairn Foundation New Start Highland & Foundation Scotland The Brick & Social And Sustainable Capital (SASC) The Reader & Livv Public Services Social Enterprise of the Year Sponsored by social enterprise champion GLL For a social enterprise for whom the majority of their income comes from the public sector and which delivers public services (for central or local government, NHS, criminal justice or other statutory body). Active Prospects Community Dental Service CIC East Coast Community Healthcare Handcrafted Projects South Ayrshire Escape From Homelessness (SeAscape)Ltd Turning Point Wellbeing Enterprise CIC Consumer Facing Social Enterprise of the Year Sponsored by supporting business GAIL’s For a social enterprise that delivers a retail product or service to the general public. Hey Girls CIC Homelands Trust-Fife NEMI Teas True Origin Unicorn Grocery Yellow Submarine Y.O.U Underwear Education, Training & Jobs Social Enterprise of the Year Sponsored by supporting business PwC For a social enterprise in the education, training or employment sectors that can demonstrate excellence in vision and strategic direction, and clearly evidence their social, environmental and community impact. Breakthrough Social Enterprise Clean for Good Connection Crew + Stitch Migrateful Platfform Scran Academy Tap Social Movement Environmental Social Enterprise of the Year Sponsored by co-operative champion OurCoop For a social enterprise in the green and environmental sector with a clear evidenced environmental impact. Amplify Goods Benthyg Cymru Changeworks Fruitful Office Remake Scotland Open Kitchen MCR PEC Trust (trading as Plymouth Energy Community) Seagulls Reuse Social Enterprise Building Diversity, Inclusion, Equity & Justice Award Sponsored by supporting business Deloitte Social justice is fundamental to the social enterprise movement. This category is open to all social enterprises who are addressing issues around diversity, inclusion and equity. Breakthrough Social Enterprise Entrepreneurs Unlocked Foundervine Migrateful More Than Flags and Rainbows CIC Studio Lutalica CIC Tooting Works Social Enterprise Women’s Champion of the Year Sponsored by supporting business Amazon Business For a woman working in the senior leadership team of a social enterprise who represents excellence in her field of work. Danielle John - EmpowerHer Lesley Sackey - Fight Forward CIC Lucy Hebberts - GINA, The Gina Project CIC Saskia Lighburn-Ritchie - MyCWA (Cheshsire Without Abuse) /Domestic Abuse Experts Oksana Kalala - New Arrivals Support CIC Teresa Canavan - Rural Action Cat Hyde - Seagulls Reuse Beverly Campbell - South Ayrshire Escape From Homelessness (SeAscape)Ltd Rebecca Smith - Social Enterprise Kent Areej AbuAli - Women in Tech SEO International Impact Award Sponsored by social enterprise champion Change Please For a social enterprise working internationally, and which are having a big impact in their field. This award is open to UK-based organisations only with existing international operations. Fair Tax Foundation Foundervine OurCoop Social Enterprise World Forum CIC True Origin WildHearts Office Community-Based Social Enterprise of the Year Sponsored by supporting business GM Business Growth Hub This award is for a social enterprise that trades for the benefit of their community, making a real local impact. Baltic Creative CIC Breathe Arts Health Research Brymbo Heritage Trust Cumbria Health New Arrivals Support CIC Raised In CIC Social Enterprise Kent The Circle Social Enterprise Technology or Innovation of the Year Sponsored by social enterprise champion Fusion21 This award open to social enterprises using new technology or bringing something innovative to the market in the past year. Change Please Hope 4 The Community CIC IDEMS International OurCoop Outcomes Star PACTO – Pembrokeshire Association Of Community Transport Organisations Socialudo: Serious Games for Social Change Co-op of the Year Sponsored by co-operative champion Co-op A new category this year, Co-op of the Year will recognise a co-operative of any size, model or type that best demonstrates a sustainable and successful business model, underpinned by the values and principles of co-operation.  EMERGE Recycling & Touch Wood Fram Farmers Signalise Co-op Stretford Public Hall The Channel Islands Co-operative Society limited Unicorn Grocery Sponsor the Awards The awards are an evening of many impact stories where founders, teams, patrons, buyers and policymakers come together to celebrate businesses that make purpose practical. If your organisation would like to align itself with this growing movement of mission-driven businesses, we have a range of sponsorship opportunities available. More information can be found in our sponsors pack.