Social value policy
We are committed to social value principles when we do business with suppliers.
Introduction
This policy outlines the Housing Ombudsman’s approach to social value measurement and management in respect of its strategic supply relationships. The Housing Ombudsman wishes to work with suppliers who consider social value an important aspect of their business brand. This can include activities performed within the community, working with disadvantaged individuals, minorities, as well as environmental policies that guide how suppliers manage resources.
Policy brief and purpose
The Housing Ombudsman’s social value policy outlines our commitment towards engaging suppliers who share our ethos. We understand that this process is important for 2 reasons.
- To be accountable to our stakeholders and to utilise our subscriptions funds in a manner which is consistent with government social value policy aims.
- To enable best practice as an organisation.
This policy is mandatory for all new third-party supply relationships with our strategic delivery partners where the whole life costs are above the threshold values (£139,688 including VAT) and may also be considered for application in below threshold procurements.
Legislative position
In February 2025, the UK saw significant changes to social value policy with the introduction of the Procurement Act 2023 and PPN02, a new Social Value Model, intended to replace the Social Value Model that has been in effect since January 2021 and PPN06/20. It emphasises social value in public procurement, requiring a minimum 10% weighting for social value in tender evaluations for contracts above a certain threshold. There is an option to use either Social Value Model in the transition period and 1 October 2025.
1.Procurement Act 2023 & PPN 002
Legal obligation
The Procurement Act 2023, which came into effect in February 2025, strengthens the legal obligation for procurement teams to ensure public contracts deliver measurable social, economic, and environmental benefits.
Social Value Model
PPN 002 introduced a new Social Value Model for Central Government bodies (including their Executive Agencies and Non-Departmental public bodies) to apply in procurement.
Threshold
The new Social Value Model applies to "above threshold" contracts for in-scope organisations, which the Procurement Act 2023 defines as £139,688 including VAT.
Minimum weighting
A minimum of 10% weighting to Social Value in tender evaluations, where it is
appropriate to generate Social Value in contracts over £100,000.
Social value outcomes
The new Model outlines 5 key missions and 8 intended Outcomes that Central
Government social value initiatives should seek to support (see Annex A).
Key Performance Indicators (KPIs) and transparency
The Act requires both buyers and suppliers to publish KPIs on key commitments within contracts, which may also include Social Value deliver.
2. Key areas of emphasis
Community cohesion
The new Model emphasises areas like community cohesion, fair work and pay, developing talent pipelines, and removing barriers to work.
Social Value 2032 roadmap
The Social Value 2032 roadmap, published in June 2023, sets out steps to embed social value across public sector procurement and transform the spending of large private sector companies.
Climate change
It's important to remember that Social Value and reducing environmental impact go hand in hand, with a focus on supporting disadvantaged groups on the road to net zero.
Social enterprise sector
The changes aim to encourage a procurement system that maximizes social, economic, and environmental impact and enables social enterprises to win contract.
The new Model is based around the 5 Missions, with eight outcomes that break down into model award criteria, model sub criteria, and standard reporting metrics.
The missions and policy outcome in the new Social Value Model (Annex A) are:
| Mission | Policy outcome |
| Kickstart economic growth | Fair work: that offers fair wages and good working conditions.Skills for growth: supporting growth sectors and addressing skills gaps. Resilient, innovative and flexible supply chains: support economic growth through enabling resilient businesses, opportunities for small businesses and voluntary, community and social enterprises. |
| Make Britain a clean energy superpower | Sustainable procurement practices: reducing carbon footprint, minimising waste, and promoting the use of clean energy and green technologies |
| Take back our streets | Support the reduction in crime through community cohesion, awareness raising and action. |
| Break down barriers to opportunity | Employment and training for those who face barriers to employment.
Creating a pipeline of opportunities for the contract workforce, reducing barriers to entry for under-represented groups. |
| Build an NHS fit for the future | Increasing productivity through physical and mental wellbeing: in the supply chain and communities in the relevant area. |
How does the Housing Ombudsman ensure suppliers meet the policy?
For strategic service procurements above the threshold (£139,688 including VAT), bidders must be evaluated against at least one of the five mission identified above, which mission(s) is chosen will depend on the type of procurement being considered.
In below threshold procurements, bidders maybe similarly evaluated though it should be noted that bidder responses to social value evaluation questions can increase bidder response costs. Therefore, including it in the procurement process should be carefully considered.
For procurement above the threshold and in line with government guidelines, the overall weighting assigned to “Social Value Criteria question” should be a minimum of 10% of the quality marks available for the procurement. However, when applied to under threshold procurements the % weighting can be lowered.
When using social value evaluation questions, suppliers should also be advised of the desired policy outcome and be asked to evidence their response.
Examples of possible social value evaluation questions (the appropriateness of using these should be considered in the round):
“Demonstrate what action the company has taken to increase the representation of disabled people in your workforce”.
“Demonstrate what action the company has taken to support young people into employment”.
“Demonstrate what action the company has taken to reduce its carbon footprint and what are your plans/goals for the next 5 years”.
“Demonstrate what action the company has taken to support a flexible workforce and what impact has that had on the diversity retention rates within the organisation? Use the last 3 years of benchmarking to support your response”.
“Please evidence what practices your company employs to ensure your supply chain adheres to tackling workforce inequality including compliance with modern slavery legislation”.
Post contract management
In line with good contract management practices and adherence to procurement procedures, regular service meetings should be held with strategic suppliers.
Where this policy is applied to a service, the wining supplier should annually be asked to submit evidence which clearly demonstrates its continued commitment to the social policy outcome chosen as part of contract award.
Transparency
The Housing Ombudsman Service will be clear in its external communications that promotion of social value within its supply base is a key focus area for the organisation.