Towards better commissioning – shaping the future of social value
Government spends £400 billion each year through public procurement. What if that money can be used in a way which not only drives economic growth but does so in a way which improves public services, strengthens communities and reduces inequalities?
In 2012, Social Enterprise UK was instrumental in helping pass the Public Services (Social Value) Act, which places a legal obligation on public bodies to consider how the services they commission and procure might improve the economic, social and environmental well-being of the areas they operate in. It looked at how commissioning and procurement could move beyond value for money, and how they can be used as a tool to create positive social and environmental impact – creating jobs and opportunities for people marginalised in the labour market, supporting communities, embedding sustainability into service delivery, and driving innovation in public services.
Since becoming legislation, we have been at the forefront of the fight to ensure that the Act’s transformative potential is realised, working with partners across sectors to drive best practice, highlight where improvements need to be made, and campaign for change.
A decade of progress and missed opportunities
The Act has been used to transform how services are delivered and how public bodies, the private sector, social enterprises, and charities can work together to improve outcomes for communities. However, research from our Social Value 2032 Programme showed how the decade since 2012 has been one of missed opportunities.
Focus groups with voluntary, community and social enterprise suppliers (VCSEs) revealed disjointed approaches to defining social value, and freedom of information requests to all local authorities found a confusing patchwork system of measuring it, with a third of councils lacking a social value policy altogether.
Worryingly, social enterprise providers with intrinsic social value are too often losing out to organisations better placed to effectively fill out bids but that don’t deliver. In total, £56bn has been lost due to the potential of social value not being fully realised across public bodies.
Helping place social enterprises at the heart of procurement reform
In February 2025, the newly elected Labour government oversaw the passing of the Procurement Act, setting out post Brexit rules for UK procurement. This was accompanied by the National Procurement Policy Statement (NPPS), which laid out the government’s strategic priorities for public procurement.
The NPPS has the potential to be a game-changer, with a core emphasis on maximising procurement spend with social enterprises and other VCSE suppliers. It also directly links social enterprises with driving economic growth, and accompanying guidance notes commit all government departments to set reportable spend targets with VCSE suppliers, as well as placing more emphasis on the importance of social value in commissioning services.
We were at the heart of helping shape these reforms, working closely with the VCSE Crown Representative, Claire Dove, and the team at the Cabinet Office to ensure that social enterprises are seen as a vital tool in helping government deliver on its missions. Through our work on the Government-funded VCSE Contract Readiness Programme, we supported government departments to track and improve their VCSE spend, baselining the spend of 12 central government departments and agencies and providing training on engaging with VCSEs to over 500 central government commercial staff.
The Better Commissioning Coalition
Through our network of social enterprise members, and the expertise gained from over a decade of creating, shaping, campaigning and evidence building – we are well placed to work with organisations committed to shaping the future of social value. As the new procurement landscape takes hold and embeds, we are looking to bring together a group of cross-sector experts in a new programme of work that demonstrates what procurement can do when harnessed to the levers of government
The Better Comissioning Coalition will demonstrate what can be achieved if we embed social value across public and private sector procurement 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.
As well as lobbying for change, working with partners and building the evidence base on what is and isn’t working in the implementation of social value, each year we convene leaders from across the public, private and social enterprise sectors to share knowledge and examples of best practice at the Social Value Leaders’ Summit.
Beyond the public sector – changing how business spends its money
Whilst the Social Value Act’s focus is on public bodies, social value is increasingly changing the way private companies spend their money – both those that deliver contracts for government and those that don’t.
Every purchase a business makes is an opportunity to create social value, and we’re proud to partner with leading businesses from across sectors to help them create positive social and environmental impact through their supply chains.
Our Buy Social Corporate Challenge works with over 30 big businesses and, since launching in 2016, has seen over £650 million spent with social enterprises. We’re looking to expand the programme to work with more big businesses and also offer a range of other support services to encourage organisations of all sizes to engage with social enterprise suppliers. With our partners, we’re changing the way businesses create value through their everyday spend.
Interested in embedding social value across you work? Get in touch
The rules of the game are changing, and increasingly public and private sector procurement are becoming vital levers in driving inclusive economic growth.
With less public money to go around, and the need to focus on delivering value for every pound, how and with whom organisations spend their money has never been more important. Good procurement is key to delivering growth felt by people across the country and in helping re-balance our economy to put people and communities first.
We can help your organisation embed mission-driven procurement into its operations, email business@socialenterprise.org.uk to find out more about how we can help you on your social value journey, whether you’re a public body looking to work with more VCSE suppliers or a private company looking to bring social enterprises into your supply chains.