Social value in tenders: what commissioners actually want to see

Social value: from nice-to-have to deal-breaker

Social value isn’t window dressing anymore. In many tenders it’s 10-20% of the evaluation — enough to swing the award.

The shift:

• Old approach: “We support local charities” (box ticked)
• New approach: “We’ll create 12 local jobs, source 60% locally, and achieve £X social return on investment” (measured, evidenced)

This guide covers what commissioners actually evaluate and how to write responses that score.

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What is social value in procurement?

Definition

Social value is the economic, social, and environmental benefit a contract delivers to the local community beyond the core service.

The Social Value Act 2012 requires public sector commissioners to consider social value in procurement. Most now embed it in tender evaluation.

Typical social value themes

Theme	What commissioners want
Employment	Local jobs, apprenticeships, training, progression
Economic	Local supply chain spend, SME engagement, prompt payment
Environment	Carbon reduction, waste management, sustainable travel
Community	Volunteering, charity support, community facility use
Health & wellbeing	Staff wellbeing, community health initiatives
COVID recovery	Supporting sectors hit by pandemic (still relevant)
Tackling deprivation	Targeting disadvantaged areas, reducing inequality

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How social value is evaluated

Weighting in tenders

• Typical: 10-15% of quality score
• High priority: Up to 20-25% (especially local authorities)
• Minimum: Rarely less than 5%

Evaluation approach

Option 1: Minimum standard (pass/fail)

• Meet minimum = full marks
• Don’t meet = zero marks (or disqualification)
• Example: “Apprenticeship commitment required”

Option 2: Scored (most common)

• Excellent: 16-20/20
• Good: 12-15/20
• Acceptable: 8-11/20
• Weak: 0-7/20

Option 3: Social Return on Investment (SROI)

• Calculate £ value of social impact
• Higher SROI = more marks
• Requires methodology and evidence

What “Excellent” looks like

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Writing the employment response

Commissioners want to know:

1. How many local jobs you’ll create
2. Whether you’ll offer apprenticeships/training
3. If you’ll recruit from disadvantaged groups
4. How you’ll support progression
5. What your retention record is

Strong response structure

Local employment:

“Job creation: This contract will support [X] FTE posts, of which we commit to recruiting [Y]% from within [local authority area boundaries]. We define ‘local’ as [postcode areas/postcodes].

Recruitment approach: We advertise via [specific local channels: Job Centre Plus, local college, community centres]. We partner with [local employment support organisation] to recruit candidates facing barriers to employment (long-term unemployed, care leavers, etc.).

Current evidence: Over the past 12 months, [Z]% of our recruits in [area] were local residents. Example: [Name/role] joined via [route] and is now [progression story].”

Apprenticeships and training:

“Apprenticeships: We commit to [X] apprentices over contract term, in roles [list]. We work with [training provider] for apprenticeship delivery. Past apprentices: [Y] completed in past 3 years, [Z]% still employed.

Training investment: All staff receive [X hours] training annually beyond mandatory minimums. We fund [specific qualifications] for career progression. Our training spend per employee: £[X] (vs sector £[Y]).”

Retention and progression:

“Retention: 12-month rolling retention: [X]% (sector avg [Y]%). Average tenure: [Z] years. [X]% staff with >2 years service. We attribute this to [specific factors: supervision, pay, conditions].

Progression: [X]% promotions internally filled last year. Career pathways: [outline]. Example: [Staff member] joined as [role], promoted to [role] after [time], now [current position].”

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Writing the economic response

Commissioners want to know:

1. How much you’ll spend locally
2. Whether you’ll engage SMEs
3. Your payment terms (prompt payment = SME support)
4. Local supply chain development

Strong response structure

Local spend:

“Spend commitment: We commit to [X]% of addressable non-staff spend with suppliers within [local authority area]. ‘Addressable’ excludes [non-local items: specialist equipment, national contracts, etc.].

Current performance: Last 12 months: [Y]% local spend, total £[Z]. Breakdown: [categories]. We track this monthly via [system/process].

Local suppliers: We source [list categories: cleaning, maintenance, training, equipment, etc.] locally. Key local suppliers: [names, what they provide, how long relationship].”

SME engagement:

“SME commitment: [X]% of subcontractors/suppliers are SMEs (<50 employees). We specifically seek local SMEs for [categories].

Support provided: We pay SMEs within 14 days (vs standard 30). We provide [feedback/development support] to help SMEs improve. Example: [Supplier name] grew from [X] to [Y] employees while working with us.”

Payment terms:

“Prompt payment: We pay all suppliers within [X] days (14 for SMEs, 30 for larger). [X]% paid early. Late payment rate: [Y]% (vs sector [Z]%).

Supply chain ethics: We require suppliers to meet [ethical standards: living wage, environmental standards]. We audit [frequency].”

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Writing the environmental response

Commissioners want to know:

1. Carbon impact of your operations
2. Travel and transport approach
3. Waste and resource management
4. Sustainable procurement

Strong response structure

Carbon and energy:

“Carbon footprint: We measure scope 1, 2, and 3 emissions annually. Current: [X tonnes CO2e]. Target: [Y% reduction by year].

Energy: Our offices use [renewable supplier/efficiency measures]. Energy consumption per employee: [X kWh] (benchmark [Y]).

Fleet: [X]% vehicles ULEZ/low emission compliant. Average vehicle age: [Y years]. Replacement policy: [criteria]. Electric vehicle target: [Z% by date].”

Travel and visits:

“Visit efficiency: We schedule to minimise travel via [software/approach]. Average travel per visit: [X miles] (vs [Y] without optimisation). [Z]% staff use public transport/active travel where practical.

Staff commuting: [X]% staff live within [distance] of workplaces. We support car-sharing, cycling, public transport via [specific measures].”

Waste and resources:

“Waste: We operate [recycling/composting/reduction initiatives]. Waste to landfill: [X]% (target [Y]%).

Digital: [X]% records digital (target 100% by [date]). Paper reduction: [Y]% in past year.

Equipment: We prioritise [reusable/repairable/recyclable]. E-waste recycled via [certified scheme].”

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Writing the community response

Commissioners want to know:

1. How you’ll give back to the community
2. Volunteering commitments
3. Community facility use
4. Partnership with local organisations

Strong response structure

Staff volunteering:

“Volunteering policy: All staff entitled to [X days/year] paid volunteering. Current uptake: [Y%] of staff, total [Z hours] last year.

Focus areas: We prioritise [health/social care/community support]. Partner organisations: [names]. Example projects: [specific activities with outcomes].”

Community facilities:

“Facility access: Our [training room/meeting space] available free to community groups [X hours/month]. Current users: [list types].

Resource sharing: We share [vehicles/equipment/expertise] with [community partners] when not in contract use.”

Charity support:

“Charity partnerships: We support [names] through [specific commitments: fundraising, pro-bono work, awareness].

Matched giving: Staff fundraising matched £ for £ up to £[X]/year. Last year total: £[Y].

In-kind support: [Specific services provided free to charities: training, consultancy, venue].”

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Measurement and reporting

What commissioners evaluate

Minimum: Commitments made

Good: Commitments + measurement approach

Excellent: Commitments + measurement + reporting + continuous improvement

Build measurement into commitments

Social Return on Investment (SROI)

What it is: Calculate £ value of social impact

How it works:

• Assign monetary value to outcomes (e.g., £X per job created, £Y per tonne CO2 saved)
• Calculate total value
• Compare to contract value
• Higher ratio = better social value

Example calculation:

Contract value: £500,000/year

Social value created:
- 10 local jobs @ £15,000 social value each = £150,000
- Apprenticeship completions @ £10,000 each × 2 = £20,000
- Local spend multiplier effect = £80,000
- Carbon reduction (50 tonnes @ £50/tonne) = £2,500
- Volunteering (200 hours @ £15/hour) = £3,000

Total social value: £255,500
SROI: £0.51 per £1 contract value (or 51%)

Note: SROI methodology varies between commissioners. Be consistent and transparent about your approach.

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Common social value mistakes

1. Generic commitments

“We support the local community.”

Fix: Specific numbers, activities, and outcomes.

2. Unmeasurable promises

“We will reduce our carbon footprint.”

Fix: “We will reduce scope 1 and 2 emissions by 15% by 2027, from [baseline] to [target], measured via [method], reported quarterly.”

3. Over-committing

Promising 20 apprenticeships for a 10-person contract.

Fix: Realistic, proportionate commitments you can deliver.

4. Ignoring current performance

Only describing future commitments, not proving track record.

Fix: Current data + future commitments = credibility.

5. Boilerplate responses

Copy-pasted from last tender, not localised.

Fix: Every tender needs area-specific detail. Mention local places, partners, needs.

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Social value by sector

Supported living

Focus:

• Local employment (support workers, coordinators)
• Service user outcomes (independence = reduced reliance on services)
• Community integration (volunteering, employment for service users)
• Local supply chain (maintenance, equipment)

Example:

“Our supported living service creates [X] local jobs per 10 service users. We source 70% of maintenance and equipment locally. We support [X]% service users into volunteering or employment.”

Domiciliary care

Focus:

• Efficient travel (lower carbon, less congestion)
• Local workforce (from communities served)
• SME engagement (cleaning, maintenance, equipment)
• Staff wellbeing (reduced sick leave = NHS impact)

Example:

“Our route optimisation reduces vehicle miles by [X]% vs standard scheduling. [Y]% staff live within 2 miles of service users they support. We source cleaning, maintenance, and equipment from local SMEs (65% spend).”

Patient transport

Focus:

• Fleet emissions (ULEZ, electric vehicles)
• Accessibility (community connectivity)
• Employment (drivers from local area)
• Health outcomes (reduced missed appointments)

Example:

“Our fleet is [X]% ULEZ compliant, reducing local air pollution. We recruit drivers from local communities ([Y]% from within area). Our service reduces hospital DNAs by [Z]%, improving NHS efficiency.”

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Integration with tender responses

Where social value fits

Usually a specific question: “Describe the social value your service will deliver.”

But also weave into:

• Workforce: Local employment, retention, progression
• Environment: Carbon reduction, travel efficiency
• Innovation: New approaches to community benefit
• Quality: Community integration, service user outcomes

Making it consistent

Ensure social value claims align with other sections:

• If claiming local employment, workforce section must support
• If claiming low carbon, environmental section must evidence
• If claiming innovation, approach section must explain

Contradictions undermine credibility.

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Next steps

Audit current social value

• What do you currently do that’s socially valuable?
• What data do you track?
• What could you measure better?

Set targets

• Realistic commitments for next tender
• Measurement approach
• Reporting schedule

Build evidence

• Gather current performance data
• Document case studies
• Calculate SROI for your model

Write specifically

• Generic doesn’t score
• Numbers and proof win marks
• Local context matters

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