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Social value is defined through the Public Services (Social Value) Act (2013) which requires all public sector organisations and their suppliers to look beyond the financial cost of a contract to consider how the services they commission and procure can improve the economic, social and environmental wellbeing of an area.
As local authorities are becoming increasingly financially self-reliant, they are looking at how to make their limited resources go ever further while still maintaining the quality and breadth of services.
Councils, along with the rest of the public sector are encouraged to use procurement to achieve wider financial and non-financial outcomes, including improving wellbeing of individuals, communities and the environment by making social value a decision-making criterion when awarding contracts.
Social Value Statement template
To enable Councils to outline key areas of focus, operational procedures, successes and resources available the National Social Value Taskforce have developed a Social Value Statement template which can be used to communicate key messages and secure support from staff, partners, suppliers and other locally based organisations to help create social value benefits for your community. Over the past few months, it has become clear that the need for social value is greater than ever, as public and private sectors continue to face unprecedented challenges in the wake on the Covid-19 pandemic – having a clear, committed Social Value Statement will help communicate this to your key stakeholders.
Social value toolkit for councils
Hammersmith and Fulham Council Social Value Statement
The London Borough of Hammersmith and Fulham has become the first council to publish a Social Value Statement and the LGA encourages you to read about their journey and look to develop and publish your own – which we will host on these pages when more are completed.
In the past year Hammersmith and Fulham have developed a Social Value Strategy, introduced a mandatory requirement for all contracts above £100,000 to achieve a minimum of 10% in Social Value, recruited a Social Value Officer and set up a Social Value Delivery Group. They have placed Social Value at the heart of their key corporate strategies with the golden thread running through their Business Plan, Industrial Strategy and Climate Emergency programme to help drive local economic growth achieve Carbon Net Zero by 2030.
West Sussex Social Value framework
As part of their ambitious Reset Plan West Sussex have created a Social Value framework to ensure all projects and contracts commissioned by the county council achieve maximum benefit for residents.
The framework has three key targets:
- In contracts over £100,000, where it is appropriate to generate Social Value, a minimum weighting of 10% will be applied to the evaluation criteria.
- 80% of new tenders over £500,000 will have social value criteria included within their evaluation by 2024/25.
- Where social value is a requirement of the contract, we will require suppliers to report quantifiable social benefits.
TOMs: measuring social value in local government procurement
We have partnered with the Social Value Portal to develop a set of Themes, Outcomes and Measures (TOMs) to help councils to measure the value they are achieving through implementing the Social Value Act.
The national TOMs framework has been designed around 5 principal issues, 20 core outcomes and 48 core measures:
- Themes: The overarching strategic themes that an organisation is looking to pursue.
- Outcomes: The objectives or goals that an organisation is looking to achieve that will contribute to the Theme.
- Measures: The measures that can be used to assess whether these Outcomes have been achieved. For the National TOMs framework, these re action based and represent activities that a supplier could complete to support a particular desired outcome.
The latest edition of the TOMs was launched at the National Social Value Conference and is now live with a number of new outcomes delivering solutions and additional community benefits with particular focus on the environment and the climate emergency, Modern Slavery and vulnerable members of our communities.
Download TOMs
Social value climate change emergency TOMs
The national TOMs: Engaging with stakeholders
Our short films below sets out how your council can use these TOMs and highlights a number of useful case studies.
Other resources
FMB provide some insights and recommendations on ensuring procurement processes are SME friendly in their report.
Read about Government's commitment to helping small businesses to grow.
Commissioning for Social Value
Socialvaluecommissioning.com is a free website created by Social Value UK and is a free of charge database where you can upload case studies explaining how social value has been increased through successful commissioning.
Please do help others to learn by sharing your own case studies and other resources. They can be uploaded by you or Social Value UK will do it for you if you email [email protected]
If you're interested on wider work on social value, take a look at the Social Value UK website where you can find out more about Social Value Principles or other research information on their crowd sourced database the Global Value Exchange.