PPN 002 Social Value Explained: What Every UK Supplier Needs to Know

If your business bids for UK public sector contracts, social value is no longer optional. Procurement Policy Note 002 (PPN 002) requires central government contracting authorities to apply a minimum 10% weighting for social value in their evaluation criteria. This guide explains what PPN 002 is, which sectors are affected, how the scoring works, and how CrowMark helps suppliers respond with confidence.

1. What is PPN 002?

Procurement Policy Note 002 (February 2025) requires all central government departments, their executive agencies, and non-departmental public bodies to include social value as a scored evaluation criterion when procuring goods, services, and works. It builds on and supersedes the earlier PPN 06/20 for new contracts.

The framework traces its foundations to the Public Services (Social Value) Act 2012, which required public authorities to consider social value but did not mandate a minimum weighting or a standardised scoring framework. PPN 06/20 introduced the first structured approach in September 2020; PPN 002 refines and continues that regime with the same five strategic policy themes, alignment with the National TOMs (Themes, Outcomes and Measures) Framework, and a clear minimum evaluation weighting of 10%.

While PPN 002 applies directly to central government procurement, its influence extends much further. Many local authorities, NHS trusts, housing associations, and other public sector bodies have adopted the same framework or closely aligned equivalents. In practice, social value scoring has become a standard feature of UK public sector procurement at every level.

2. The five PPN 002 themes

PPN 002 organises social value delivery around five strategic themes, each reflecting a UK government policy priority:

1. COVID-19 recovery. Job creation, apprenticeships, skills development, and community support for pandemic-affected populations.
2. Tackling economic inequality (levelling up). Local employment, SME supply chain diversification, support for schools and colleges, and investment in underrepresented regions.
3. Fighting climate change. Carbon reduction, net zero progression, environmental impact minimisation, and support for the green transition.
4. Equal opportunity. Increasing workforce representation for women, ethnic minorities, disabled people, and other underrepresented groups.
5. Wellbeing. Mental health programmes, physical health initiatives, community volunteering, and workplace wellbeing improvements.

Not all five themes apply to every contract. The contracting authority selects which themes are most relevant based on the contract's nature, geography, and strategic priorities. Suppliers must respond to the selected themes with specific, measurable commitments.

3. The 10% minimum threshold

PPN 002 mandates that social value carries a minimum weighting of 10% of the total evaluation score. This means that in a procurement where technical quality is scored at 60% and price at 30%, social value accounts for at least the remaining 10%.

In practice, many buyers apply weightings significantly higher than 10%. Some NHS trusts and local authorities use social value weightings of 15%, 20%, or even 30%. On contracts where technical specifications are standardised and price competition is tight, social value can become the decisive differentiator between otherwise equal bids.

The implication for suppliers is clear: treating social value as an afterthought risks losing contracts to competitors who invest in their social value response, even when the technical offer and pricing are comparable.

4. How social value scoring works

Most UK public sector buyers score social value using the National TOMs Framework. This framework maps each PPN 002 theme to specific Outcomes, and each Outcome to measurable Measures. For example, the "tackling economic inequality" theme includes outcomes such as "more local people in employment" and measures such as "number of local FTE jobs created on the contract."

Suppliers select which measures they will deliver, quantify their commitments (for example, "we will create 5 apprenticeships within 12 months"), and provide a narrative explaining how they will achieve them. The commitments are then monetised using proxy values from the Oxford Social Value Bank (SVB), which provides an independent, evidence-based monetary value for each type of social value activity.

The 2023-24 edition of the Oxford SVB is the most current version and is the standard reference used by most buyers. Using outdated proxy values produces incorrect calculations and can undermine the credibility of a bid response.

5. Which sectors are affected?

PPN 002 directly applies to central government procurement, but its reach is far broader:

• Construction and infrastructure. Major infrastructure contracts routinely carry social value weightings of 15-20%, with TOMs measures focused on local employment, apprenticeships, and carbon reduction.
• IT and professional services. Government digital and technology contracts increasingly require social value commitments around skills development, diversity, and local economic impact.
• Facilities management. FM contracts for government estates and NHS facilities typically include social value requirements focused on local employment and environmental performance.
• Healthcare and social care. NHS procurement has adopted social value evaluation as standard practice, with particular emphasis on wellbeing, community health, and equal opportunities.
• Defence and security. Ministry of Defence procurement applies social value scoring, often with emphasis on skills development and regional economic impact.
• Education. Schools, colleges, and universities increasingly require social value commitments from contractors and service providers.

Any supplier bidding for UK public sector work should expect to encounter social value evaluation. The question is not whether social value applies, but how effectively you respond to it.

6. Common mistakes that cost suppliers contracts

Five errors consistently undermine social value scores in competitive bid evaluations:

1. Generic commitments not tied to specific TOMs measures. Statements like "we are committed to local employment" score poorly. Buyers want specific, quantified commitments: "we will recruit 4 local FTE employees within 6 months of contract start."
2. Responding to the wrong themes. Each procurement specifies which PPN 002 themes apply. Offering measures aligned to themes the buyer has not selected wastes evaluation space and demonstrates a lack of attention to the brief.
3. Overclaiming beyond what can be evidenced. Post-award social value reporting is now standard. Committing to measures you cannot evidence during contract delivery risks penalty clauses and damages future bid credibility.
4. Using outdated proxy values. The Oxford SVB is updated regularly. Submitting calculations based on older editions produces incorrect figures and raises questions about the rigour of your approach.
5. No evidence tracking plan. Many contracts require monthly or quarterly social value reporting. Suppliers who do not plan for evidence collection from the outset face compliance problems after award.

7. How CrowMark scores your commitments

CrowMark automates the full PPN 002 social value workflow. Enter your contract details, value, sector, geography, contracting authority type, and duration, and CrowMark maps the relevant PPN 002 missions automatically using deterministic, rules-based logic (not AI). This ensures consistent, auditable mission mapping that matches the contracting authority's requirements.

Select your social value measures from the TOMs-aligned library. CrowMark applies the current Oxford SVB 2023-24 proxy values (stored in our database and updated when new editions are published) to calculate your total social value score. The platform shows whether your commitments meet the buyer's threshold before you submit.

CrowMark then generates a compliant social value narrative from your selections using server-side AI (Google Gemini), with regulatory citations and structure that matches buyer expectations. After contract award, the built-in evidence tracker sends monthly reminders and helps you report against committed measures throughout the contract term.