PPN 002 comes into force: what the new Social Value rules mean for your business

The big change on 1 October

From 1 October 2025, all central government departments must apply the updated Social Value Model, published as Procurement Policy Note (PPN) 002.

From this point, social value will account for at least ten per cent of every tender evaluation. More importantly, success will no longer be measured only at the bid stage. Suppliers will be expected to deliver, monitor and evidence their commitments throughout the lifetime of the contract.

For organisations that supply government, or sit within their supply chains, this is a turning point. Social value is now a core part of business strategy, not a bolt-on.

From Themes to Missions

The previous Social Value Model, introduced in 2021 (PPN 06/20), was structured around broad Themes such as fighting climate change or tackling economic inequality.

The new Model under PPN 002 is built around the government’s five Missions, which sit at the heart of its long-term plan for national renewal:

1. Kickstart economic growth – jobs and productivity across every region
2. Make Britain a clean energy superpower – accelerating net zero through cheaper, zero-carbon electricity
3. Take back our streets – halving serious violent crime and restoring trust in justice
4. Opportunity for all – reforming childcare and education to remove barriers
5. Build an NHS fit for the future – reducing lives lost to the nation’s biggest killers

These Missions cascade into detailed outcomes, award criteria and standard reporting metrics. That means buyers will be clearer about what counts as good social value, and suppliers will need to show exactly how they deliver against those priorities.

What is different under PPN 002

While much of the learning from the last four years can carry forward, three sharper expectations stand out in the new Model:

• Hyper-local delivery. Commitments need to create tangible benefits in the communities where contracts are delivered. Generic or national promises will not be enough.
• Lasting legacy. Activity should create sustained benefits, not only short-term initiatives that end when a contract does.
• Delivery of the promise. Accountability now runs across the full contract lifecycle. Suppliers will need to monitor and report progress against their commitments using defined metrics and KPIs.

Together, these changes mark a cultural shift. Social value is no longer about headline pledges. It is about authentic, evidenced impact.

Why this matters for business leaders

For business leaders, PPN 002 is more than a procurement update. It is a leadership issue.

• Competitive advantage: in a tight tender, social value can now tip the balance.
• Risk management: over-promising and under-delivering could damage both reputation and contract performance.
• Culture and engagement: employees want to work for organisations that prove their purpose. Embedding social value is one of the clearest ways to show it.

How corporate volunteering can help you deliver

Corporate volunteering is one of the most practical ways to evidence social value because it creates measurable outcomes that align with government priorities. For example:

• Skills and economic growth through mentoring young people, running employability workshops or supporting SMEs with specialist expertise
• Clean energy and sustainability through conservation, biodiversity and climate resilience projects
• Community inclusion through volunteering that creates opportunities for under-represented groups and builds resilience at a local level

At EmployeeVolunteering, we specialise in designing programmes that are hyper-local, scalable and built to last. Our reporting captures participation, hours, skills applied and outcomes, giving you evidence you can rely on.

A wider shift in how social impact is reported

PPN 002 reflects a broader trend. In the UK, new sustainability reporting standards aligned with the International Sustainability Standards Board are due from 2026. Across Europe, the Corporate Sustainability Reporting Directive already requires large businesses, including non-EU companies with operations in Europe, to publish detailed ESG data.

The direction of travel is clear. Social impact will be reported with the same seriousness as financial performance.

What to do next

If your organisation bids for public sector contracts, or is part of a supply chain that does, now is the time to act:

1. Review your commitments. Are they hyper-local, measurable and aligned with the five Missions?
2. Plan for delivery. Can you evidence outcomes across the whole contract lifecycle?
3. Engage your workforce. Corporate volunteering creates local, lasting impact that is easy to measure and prove.

At Employee Volunteering, we work with organisations to design volunteering programmes that meet the test of PPN 002, strengthen bids and engage employees. We would love to help you shape a strategy that delivers measurable social value for your business and your communities.