LUPC has produced a summary of the recently announced Procurement Policy Note (PPN) 026 and what it means for our members. PPN 026 introduces a revised Social Value Model for central government procurements applicable from 1 January 2027.

The new model significantly narrows the focus of social value evaluation to two outcomes: Good Jobs and Skills, replacing the broader range of social value themes found in previous models. It introduces six award criteria and a tiered evaluation weighting of 10% for contracts between £1 million and £5 million, and 20% for contracts valued at £5 million and above.

While PPN 026 is mandatory for central government bodies and certain arm's length organisations, many universities, colleges, NHS organisations and other public sector bodies may wish to consider the wider direction of travel and the implications for future procurement activity.

These PPN 026 presentation slides (available behind a member login) were originally prepared for an internal discussion with the LUPC Category Team, but we felt the content would be useful to share more widely with LUPC members.

Further guidance from the Cabinet Office is expected this autumn.

Here at LUPC, we are developing a social value matrix to help members identify where social value criteria align with the six new PPN 026 award criteria in LUPC-delivered frameworks. These will be shared in due course.

For more information, please contact Mags Shapiro, Responsible Procurement Lead, LUPC.