Social value in procurement, explained for small businesses

If you've looked at a public sector tender recently, you've probably seen questions about things like jobs, training, local spending or environmental impact. Those questions sit under "social value".

In procurement, social value means the wider benefits a buyer wants a contract to deliver alongside the core goods or services.

For years, the government has encouraged public bodies to consider this, and it's supported by legislation such as the Public Services (Social Value) Act.

For small businesses, social value can feel unclear at first. Different buyers use different language and templates and it isn't always obvious what will score well.

This guide explains social value in plain English and shows you how to respond in a practical, credible way.

It covers where social value appears in tenders, how it's assessed, what realistic commitments look like and how to show evidence of what you've promised.

1. What social value in procurement means

When buyers talk about social value, they're asking a simple question: if public money is being spent, what good comes with it?

That "good" should connect to the contract you're bidding for.

• If you're providing catering, it might be about local sourcing, reducing food waste or offering training roles in the kitchen.

• If you're delivering IT support, it might be about apprenticeships, accessible design or strengthening cyber awareness for staff.

• For a cleaning contract, it could be safer products, fair employment practices or offering opportunities to people who've struggled to find work.

Some buyers will be very specific about what they want. Others will give you a broad prompt and leave you to shape the response. Either way, social value usually falls into a few familiar areas.

The common themes buyers use

1. Jobs and skills

This is the one most businesses recognise quickly. Buyers may ask how you'll create local jobs, offer apprenticeships, provide work placements or support staff training.

They might also ask how you'll recruit fairly and support people who face barriers to work. Think long-term unemployed, care leavers, young people not in education or training or people with disabilities.

You don't need to cover every group. Pick what fits your business and what you can do properly.

2. Supporting local businesses and communities

Public bodies often want spend to circulate locally. That can mean:

• using local suppliers

• paying them promptly

• working with local charities and community organisations where it's relevant

For a small business, this can be quite practical. If you already buy from other SMEs or you can show that you'll do so on the contract, say it clearly.

If you can offer a few hours of mentoring to local start-ups in your field, that can also be relevant, as long as it's realistic.

3. Environment and sustainability

Buyers often want to see that you understand your impact on the environment and can take sensible steps to reduce it. This could be:

• planning travel to cut mileage

• choosing lower-impact materials

• reducing waste

• switching to reusable packaging

• monitoring your energy use

If you can measure anything, even in a basic way, that helps. If you can't, focus on actions you can deliver and show evidence of.

4. Fairness and good work

Some tenders ask about how you treat staff and how you run your business. They may want to see:

• fair pay

• secure work

• safe working practices

• support for wellbeing

If you're a microbusiness, your answer might be simple. Explain your approach to pay, training and flexibility.

If you work with subcontractors, be clear about what you expect from them too.

5. Accessibility and inclusion

This comes up a lot in service design, digital work, communications and anything customer-facing.

Buyers want services that work for everyone, including people with disabilities, people who don't speak English well or people who don't have access to digital devices and services.

If you have experience here, bring it forward. If you don't, explain what you'll do to make your service accessible, such as testing, inclusive language or alternative channels.

What a good social value answer looks like

A strong answer is usually built from three parts.

1. You show you've understood the buyer's priorities and the realities of the contract.

2. You make a small number of commitments you can actually deliver. Two to four is often enough.

3. You explain how you'll deliver them and how you'll show progress. Who's responsible, what you'll measure and when you'll report.

That's it. The buyer needs to see you've thought it through and you can follow through.

A quick check before you write anything

Before you start drafting, pause and ask yourself:

• Which social value themes does this tender mention?

• What can we genuinely do through this contract, not just in general?

• What can we prove with evidence if we win?

If you can answer those, you're in a good place to write something that feels grounded and credible.

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2. Where social value shows up in tenders and what buyers are really marking

Social value can be easy to misread in a tender pack because it doesn't always sit neatly under a heading called "social value".

Sometimes it does. Other times it's folded into wider questions around quality or tucked into contract schedules at the back.

Your job is to work out three things early on:

1. Where the buyer is asking for social value

2. How they're scoring it

3. What evidence they expect if you win

Start with the evaluation section

Before you draft anything, find the evaluation criteria.

This is the part that tells you how the buyer will choose a winner. It might be a table, a set of headings or a written explanation.

Look for:

• the weight given to quality and price

• whether social value has its own score or sits inside a wider quality score

• the scoring scale, which usually explains what earns low, medium and high marks

If social value carries meaningful marks, it's worth time and care.

If it's a small part of the score, you still need to answer it well, but you shouldn't spend days polishing something that isn't weighted heavily.

Find the question, then read it slowly

Most tenders will ask you to respond in one of these ways:

• A dedicated social value question

• A short "social value statement"

• A method statement that includes social value alongside delivery, staffing and quality control

• A set of measures where you have to enter targets

Whatever the format, stick to what the buyer has asked for.

If they've asked for outcomes linked to local employment, don't spend half your word count on recycling. If they've asked for measurable commitments, don't give them general intentions.

And pay attention to word counts. Social value answers often have tight limits. Buyers want a clear summary, not a long essay.

Watch out for hidden requirements

Some of the most important clues sit outside the question itself. Scan the tender pack for words like:

• reporting

• monitoring

• KPIs (key performance indicators)

• contract management

• delivery plan

• mobilisation

These are usually the sections that tell you what happens after a contract is awarded. They might include templates for reporting or a requirement to provide updates every month or quarter.

It matters because many buyers treat social value like any other part of performance.

If you promise 10 volunteering days or a set number of training hours, they may build that into contract reporting. If you can't deliver it, it becomes a problem later.

Pay attention to what counts as evidence

Buyers don't expect you to have everything set up on day one. But they do expect you to keep records and show progress.

Evidence might include:

• payroll or HR records showing hires, apprenticeships or training completed

• invoices showing spending with local suppliers or SMEs

• waste transfer notes or basic tracking of waste and recycling

• travel logs or mileage tracking

• attendance lists and feedback from community sessions

• short case studies of what you delivered during the contract

You don't need fancy systems – just a simple approach you can stick to. A spreadsheet and a folder of supporting documents is often enough, as long as it's organised.

A useful way to spot what's being marked

If you're not sure what the buyer cares about most, look for these signals:

• Do they mention particular themes more than once?

• Do they ask for numbers and targets or do they ask for examples and approach?

• Do they ask for local delivery, named partners or support for specific groups?

• Do they include a scoring guide that spells out what "excellent" looks like?

Buyers usually tell you what they want if you read carefully. Your job is to reflect it back in your own words, with commitments that make sense for your business.

Ask if something is unclear

A lot of small businesses avoid asking questions because they think it makes them look inexperienced. It doesn't. Clarification questions are normal and buyers expect them.

If a tender is vague about what counts as local, how evidence should be reported or whether a commitment becomes binding as part of a contract, it's worth asking.

It can save you from writing the wrong answer or promising something that doesn't fit.

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3. Choosing social value commitments that make sense and score well

This is where a lot of bids go wrong. People either promise too much or they stay so general that the buyer can't see what they're actually offering.

The strongest responses sit in the middle. They commit to a handful of things that fit the contract, fit the business and can be measured without pain.

Start with what you can control

When you're bidding, it's tempting to reach for big, impressive promises.

But delivery is what matters. If you win, you'll be expected to follow through and someone will ask you to show progress.

So begin with actions you can control through the contract. Things like:

• who you employ to deliver the work

• what training you provide

• where you buy goods and services from

• how you travel and manage waste

• how you make your service accessible

These are usually easier to plan and easier to evidence.

Keep it tied to the contract

Buyers are looking for relevance.

• If the contract is for facilities management, social value linked to employment, training, health and safety and spending with a local supply chain will usually land well.

• If the contract is for design or communications, accessibility and inclusive engagement might be more important.

A useful question to ask yourself is: what social value would naturally come from doing this job well?

That keeps you grounded. It also helps you avoid cramming in unrelated initiatives that read like padding.

Pick fewer commitments and make them clearer

A common mistake is trying to cover every theme the buyer mentions. You end up with a list of vague intentions and no space to explain delivery.

In most cases, two to four commitments is plenty. If the tender is large and the buyer asks for more, you can expand.

But as a general rule, fewer commitments written well will score better than a long list written thinly.

Make your commitments specific

Your bid doesn't need to read like a policy document. But make sure you include enough detail that the buyer can picture what will happen.

Good commitments usually include:

• a number or target

• a timeframe

• who will be responsible

• how you'll track progress

For example:

• "We'll support local employment" is hard to score.

• "We'll recruit two roles locally during the first six months of the contract and advertise through local job channels. Our contract manager will report on hires every quarter" is much easier for an evaluator to mark.

If you can't confidently give numbers yet, you can still be specific.

You might commit to a defined process, like "we'll offer one work placement per quarter" or "we'll hold two supplier engagement sessions per year". Just don't leave it floating.

Don't build your answer on dependencies you can't guarantee

Be careful with commitments that rely on other people doing something, unless you already have that relationship in place.

For example, promising to deliver work placements through a school you've never spoken to, or to partner with a charity you haven't approached, is risky.

If you want to include partnerships, choose ones you already work with or be honest about what you've agreed and what you'll do to set it up. Buyers will quickly spot when you're overreaching.

Scale your commitments to the size of contract

Buyers will usually mark down answers that feel disproportionate or unrealistic.

If the contract is worth £30,000 a year, a commitment to create five new jobs won't sound credible. If the contract is national, a promise to run one local volunteering day might feel thin.

The important thing here is to show you've thought about scale.

One way to do it is to tie commitments to contract value or staffing. For example, "we'll provide training for every staff member assigned to this contract" is naturally proportional.

Write commitments you can back up

Before you finalise your list, check that you can prove delivery without creating a huge admin burden. Ask:

• what records will we already have as part of running the contract?

• what do we need to add that's simple and realistic?

• who will gather the evidence and how often?

If the answer is "no idea", change the commitment.

This is especially important for small businesses where the person writing the bid is often the person delivering the work.

A simple shortlist to use when you're deciding

When you're choosing what to include, run each idea through this quick test:

• Does it relate to this contract?

• Can we deliver it with the people and time we'll have?

• Can we measure it and report it without making life difficult?

• Will it matter to the buyer and the community they serve?

If you can say yes to all four, it's a good candidate.

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4. Writing a strong social value response, without overcomplicating it

Once you've chosen your commitments, the writing part is mostly about being as clear as possible.

Evaluators are reading lots of bids. They don't have time to guess what you mean. If you make it easy to score, you're already ahead.

Most social value questions can be answered using a simple structure. You can adapt it whether the buyer asks for a plan, a statement or a method write-up.

A structure that works in most tenders

1. A short opening that shows you've understood the brief

One or two sentences is enough. Name the themes the buyer has highlighted and confirm you'll deliver social value through the contract, not as a side project.

Keep it plain. Don't repeat the tender wording back at them word for word. Just show you've read it.

2. Your commitments, written as clear bullet points

This is the heart of the response. List your commitments so the buyer can find them quickly.

For each commitment, cover:

• what you'll do

• how much you'll do

• when you'll do it

• who's responsible

• how you'll measure it

You can write this as short paragraphs, but bullet points usually work better because they're easy to score.

3. How you'll deliver and manage it

This is where you show it's not wishful thinking. Explain how you'll build social value into day-to-day delivery. Mention:

• who owns social value delivery internally

• how you'll track it

• how often you'll review progress

• how you'll report it to the buyer

If you're a small firm, all you need is a named lead and a simple timeline for reporting.

4. Evidence and reporting

Be specific about what proof you'll provide. Buyers often want confidence that you'll keep records and report consistently.

Examples of evidence you can mention:

• recruitment records and anonymised data on hires

• training attendance and certificates

• supplier invoices showing local spending

• waste records or basic tracking

• short case studies and photos where appropriate

Only list evidence you can actually produce.

Make it easy for the evaluator to give you marks

Evaluators usually score against a published set of criteria.

You'll often see wording like "clear, measurable, deliverable, relevant" even if they don't spell it out exactly like that.

Help them out by:

• using numbers where you can

• using timeframes, even if they're broad (monthly, quarterly, first six months)

• avoiding vague language like "we aim to" or "we hope to"

• keeping each commitment focused on one outcome

And don't hide the good stuff in long paragraphs. If you've got one great commitment, it should be easy to spot.

A quick example of how a commitment can read

Here's an example you can adapt. It's written in a way that fits lots of contracts, but you'd always tailor it to your own situation.

"During the first 12 months of the contract, we'll offer two paid work placements for local people who are looking to re-enter work. Placements will run for at least four weeks.

"Our contract manager will work with local job and employability services to advertise roles. We will report placements every quarter, including start and completion dates."

Notice what it does. It gives a target, a timeframe, a delivery route and a reporting plan. It doesn't need fancy language.

What to do if you've got limited space

If a question has a tight word limit, prioritise:

• the commitments with targets and timeframes

• a short delivery and reporting plan

• evidence you can provide

You can keep the intro to a single sentence. Most buyers won't mark you down for being brief if you've answered what they asked.

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5. Delivering and reporting social value once you've won

Winning a contract is the start of the relationship, but not the end of the paperwork.

If you've included social value commitments in your bid, the buyer will usually expect you to deliver them and report on progress during the contract.

Here's how to do it properly.

Assume the buyer will track your commitments

Even when social value isn't written as a formal KPI in the contract, buyers often ask for updates.

Some will want a quarterly report. Some will check progress in contract meetings. Some will ask for evidence at renewal points.

So treat your bid commitments like part of delivery. The easiest way to do that is to decide, before the contract starts, who's responsible and how you'll keep records.

Assign ownership early

In a small business, "ownership" might simply mean one named person who keeps an eye on the commitments and makes sure evidence is collected. It could be the contract manager, the operations lead or the owner.

What matters is that it's clear inside the business. Social value delivery tends to slip when everyone assumes someone else is doing it.

If you use subcontractors, bring them into the conversation from the start. If you're promising local spending or apprenticeships through your supply chain, you'll need their co-operation and their data.

Set up a simple tracking method

For most SMEs, a simple spreadsheet is enough. It can include:

• the commitment

• the target

• the timeframe

• the owner

• what evidence you'll collect

• when you'll report it

• progress to date

Keep it somewhere your team can access. Update it little and often. Ten minutes a month beats a scramble at the end of the quarter.

Decide what evidence you'll keep

The aim here is to make it easy to prove you're delivering. For each commitment, decide what proof makes sense. Examples include:

• recruitment records, made anonymous where appropriate

• training logs or certificates

• invoices from local suppliers

• records of volunteer hours

• waste and recycling records

• photos or short write-ups from community activities

• short testimonials from partners where relevant

Keep evidence proportionate – don't over-provide.

Build reporting into your normal contract rhythm

If you already have monthly or quarterly contract meetings, social value can be a standing item. If you report performance metrics, add social value metrics to the pack.

If you've promised something that happens once a year, you can still track it. Just make it visible so you don't forget about it.

And if a commitment is slipping, deal with it early.

Buyers are often reasonable if you're honest and propose a solution. They're much less forgiving if they only find out at the end.

Be careful with personal data

Some social value activities involve sensitive information. For example, you might be supporting people into work.

You should never share personal details with a buyer unless you're specifically required to and there's a legal reason for doing it.

A safer approach is to report in aggregates. For example:

• "two placements completed"

• "five staff completed accredited training"

• "10 hours of mentoring delivered"

If the buyer asks for more detail, check what they need and why. Then share only what's appropriate.

Keep your promises realistic and flexible

Sometimes, things change during delivery. The scope of the contract shifts, or staffing changes, or a partner organisation becomes unavailable. This happens.

If it affects one of your social value commitments, don't ignore it. Suggest an alternative that still meets the intent of the original commitment.

Buyers usually care about outcomes, not the exact activity you first proposed. But you both need to agree on it.

Turn delivery into a strength

If you deliver social value well, it becomes a useful asset. It can help you with contract extensions, renewals and future bids.

It can also strengthen relationships with prime contractors and strategic suppliers who need evidence of social value performance across their supply chains.

That's another reason to keep records. You're not only reporting to the buyer. You're building your own track record.

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6. How social value can help you win work with larger suppliers

A lot of SMEs enter public sector work through bigger organisations.

You might supply a strategic supplier, a facilities management firm, a construction contractor or a large IT provider delivering a government contract.

In those cases, social value still matters, even if you're not bidding to the public body directly.

Large suppliers are often scored on social value when they bid for public contracts. And once they win, they still have to deliver what they promised.

They can't do all of that on their own. They need delivery partners who help them meet commitments on jobs, skills, local spending, environment and community benefits.

That's where SMEs can become valuable.

What big suppliers look for from SMEs

Most large suppliers aren't expecting a small business to come with a full social value team and a stack of reports. They want partners who can do three things well.

1. Deliver their part of the contract reliably

2. Contribute to social value outcomes in a practical way

3. Provide simple evidence that shows what was delivered

If you can offer those, you become easier to bring into bids and easier to keep in the supply chain.

Ways SMEs can support social value through a supply chain

Here are common ways small businesses contribute, without having to invent whole new programmes.

1. Local delivery and local spending

If you're based in the area where the contract is being delivered, that's often useful in itself.

It can lessen the need to travel, make you more responsive and support activity to boost the local economy. If you also buy from other local SMEs, that strengthens the chain further.

2. Jobs and skills

You might support apprenticeships, take on trainees, offer work placements or provide skills sessions.

In supply chains, even small numbers can matter, as long as they're real and properly recorded.

3. Community links

Many SMEs already have connections to local groups and networks. That might be relevant if the contract includes engagement, outreach or community-facing delivery.

4. Environmental improvements

You can contribute through practical actions like reducing waste, choosing lower-impact materials, tracking mileage or using more sustainable suppliers.

5. Accessibility and inclusive service

For customer-facing work, inclusive practice matters. For digital and communications work, accessibility is often a key requirement.

The point is that supply chain social value isn't separate from delivery. It usually comes from how the work is done and who benefits from it.

How to position yourself when approaching a larger supplier

If you want to win work with a prime contractor or strategic supplier, you need to make it easy for them to say yes.

That starts with a clear offer. When you talk to them or send information, include:

• what you do and what contracts you're suited to

• where you can deliver and how quickly

• what social value you can support through your work

• what evidence you can provide

Keep it short. A few well-chosen examples are better than a long list.

You can also include a simple "social value summary" for your business. This is a one-page snapshot of what you can offer through a contract. For example:

• "We recruit locally where possible and can report hires and training completed."

• "We use local subcontractors and can provide spend data and supplier lists."

• "We track mileage and waste and can report reductions over time."

It helps the larger supplier plug you in to their bid and show the buyer that social value delivery is credible.

Be careful with claims

This is worth saying plainly. Don't claim you'll deliver something you can't control.

If you're in a supply chain, you might not control the full contract or the overall social value plan.

So focus on what you'll deliver within your scope. And make sure your numbers add up.

If you're one of several subcontractors, your commitments should reflect your part of the work.

Build trust through reporting

If you win a subcontract and deliver social value well, it becomes a strong advantage.

Large suppliers often have to report supply chain data to the contracting authority. If you can provide your figures on time, in a tidy format, with basic evidence, you quickly become a preferred partner.

Many SMEs lose opportunities not because of delivery, but because reporting is messy or inconsistent.

7. A pre-submission checklist and quick FAQs

Before you submit your bid, it's worth doing a short sense check.

Social value answers are often the easiest place to pick up marks and the easiest place to lose them.

A simple pre-submission checklist

• Have you matched the buyer's priorities? Read the question again and check your commitments connect to what they asked for. If they've emphasised jobs and skills, make sure that's where most of your space goes.

• Are your commitments clear and measurable? A buyer should be able to pull out your targets quickly. If you can't spot the numbers yourself, an evaluator won't either.

• Are the commitments realistic for the size of contract? Look at the contract's value, its length and how many people you'll have working on it. Your commitments should make sense alongside that.

• Have you explained how delivery will work? Even a short paragraph helps. Name the person responsible, describe how you'll track progress and say how often you'll report.

• Can you evidence everything you've promised? If a commitment relies on records you don't keep, or on a partner you haven't spoken to, adjust it now.

• Have you followed the tender instructions exactly? Check word limits, templates and any necessary formatting. If the buyer asked you to complete a table, make sure you've done it properly.

• Have you kept the language plain? Avoid general statements and keep sentences simple. Buyers are scoring content, not style.

Quick FAQs on social value bids

• Do I need to have a full social value strategy to bid? No. You need a small number of sensible commitments tied to the contract, plus a way to deliver and report them. Most SMEs start there and build over time.

• What if I'm a very small business? Small businesses can still score well. Buyers often value local delivery, fair work and clear commitments. Keep your promises proportionate and focus on what you can deliver consistently.

• Do I need to spend money to create social value? Not always. Some actions have a cost, like accredited training or paid placements. Many don't, like improving accessibility, adjusting recruitment practices, mentoring or tightening up waste processes. Choose what fits the contract and your margins.

• What if I don't know what numbers to commit to yet? Start with what you can confidently deliver. Use small targets and build in review points. Don't guess. If the buyer expects targets, give them what you can stand behind.

• Is social value always scored in the same way? No. The approach varies by buyer and sector. Some use set models and measures, while others use narrative questions. Your safest approach is to follow the tender documents closely and make your answer easy to score.

• If I'm subcontracting, do I still need to think about social value? Yes. Larger suppliers often need their partners to contribute to delivering social value and provide evidence. Being able to do that can help you win and keep work.

• What happens if I win but can't deliver a commitment? It depends on the contract, but it can create real issues. That's why it's important to keep commitments realistic and track delivery early. If something changes, raise it with the buyer or prime contractor and agree an alternative.

Conclusion

Social value can feel like extra work when you're busy running a small business. But it's now part of how many public contracts are awarded and managed.

If you treat it as a practical part of delivery and keep your commitments grounded, it becomes manageable.

Most SMEs already create wider benefits through how they operate. The skill is writing it down in a way that's specific, relevant and easy to evidence.

When you're ready, pick one upcoming tender and practise. Choose three commitments you can deliver, write them clearly and build a simple reporting plan around them. That's a strong starting point.

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