Government releases guidance for PPN 026 buyers and suppliers

The Cabinet Office has published the detailed guidance for PPN 026, following the policy note released in August. Buyers and suppliers can now review the practical detail before the new model takes effect on 1 January 2027. [1]

At Social Value Engine, our view is that preparation should start with the people who will benefit and the people responsible for delivery. A credible commitment needs a workable route from the tender response to a useful change in someone's life.

Which procurements are covered?

PPN 026 applies to covered procurements under the Procurement Act 2023 by central government departments, their executive agencies and non-departmental public bodies. Other public bodies may adopt the approach. Its two outcomes are Good Jobs and Skills. The threshold is £1m including VAT, and commencement is determined by publication of the tender notice. [2]

These are minimum weightings for in-scope contracts. Under absolute evaluation methods, the percentage applies to the non-price criteria. [2] Contracts must also meet the applicable public-contract threshold. [3, section 4.1]

For a framework call-off, check the framework's policy version and award procedure before preparing a response. Framework establishment need not use the minimum weighting, but must enable compliant call-off assessment. [3, sections 1.2 and 4.3]

Make the delivery plan credible

Annex B now provides sub-criteria, standard reporting metrics and target cohort definitions. Evaluation is generally qualitative; Annex A permits quantitative scoring under criterion 1a for £5m-plus contracts, subject to safeguards and prior legal advice. [3]

Our recommendation for suppliers is to test each proposed commitment with the team that will deliver it. For a placement, ask who will supervise the participant, what work they will do and whether the schedule fits the contract. Discuss the support someone may need to take part.

Buyers can use market engagement to explore those practical limits. Ask what a smaller supplier could deliver well, how participation would be supported and what evidence could reasonably be collected. A commitment becomes easier to assess when the delivery arrangements are clear.

Explain what the contract makes possible

Existing activity can be expanded where the contract causes that expansion. Core contracted services cannot be counted again. Annex A offers conditional routes for retention, redeployment and inherent social value, requiring legal advice. [3, section 4.3 and Annex A]

For suppliers, we suggest recording the starting position before setting a target. Explain what is already happening, what would change if the bid succeeds and how the proposed contribution relates to this contract. Keep the assumptions behind that explanation.

This is particularly useful for organisations whose everyday work already creates social benefit. A clear account of the proposed change helps a buyer understand the commitment and gives the delivery team a basis for checking progress.

Agree the evidence before delivery starts

PPN 026 calls for contractual monitoring of commitments. For contracts worth £5m or more, at least one social value KPI should be set in addition to the Procurement Act KPIs, published and reported on at least annually. [2] Departments should also report quarterly to the Cabinet Office where standard reporting metrics are used. [3, section 5.3]

We recommend agreeing the evidence alongside the target. For each commitment, record its owner, reporting frequency and evidence source. Decide who will review updates and how a missed milestone will be addressed.

For example, an illustrative placement commitment could record a target of ten completed placements by an agreed date. The supporting record might include attendance and completion evidence, with participant feedback collected where appropriate. Keeping offers, starts and completions separate makes progress easier to interpret.

Bid and contract teams should review this together before submission. The person responsible for reporting needs to understand exactly what has been promised.

Our guide to what makes a good social value KPI explains how to define and monitor commitments, outputs and outcomes.

Choose support that fits the people involved

Listed Community Programmes will be optional; the list remains forthcoming. [3, section 4.2]

Suppliers can use the preparation period to understand potential delivery partners and the people they support. Ask about capacity, referral arrangements and the support needed to help participants stay involved.

A local organisation may help explain why previous opportunities were difficult to access. Travel, caring responsibilities or the timing of training could all affect participation. Discussing these questions early can improve the design of a proposed activity.

Keep the effect on people visible

Broader expectations, such as carbon emissions, sit outside the model's minimum 10% or 20% weighting. [3, Annex E]

At SVE, we believe organisations should also keep asking what their activities achieve for people. A completed training course can be a useful milestone. Following up on confidence, progression or sustained employment can help explain its value.

Our advice is to agree a proportionate approach to follow-up at the planning stage. Ask participants what changed and consider other factors that may have contributed. Where an organisation uses social return on investment, keep the evidence and assumptions behind the valuation visible.

Our guide to measuring jobs and skills social value looks at the evidence needed to follow a contract commitment through to a sustained outcome.

SVE Delivery supports the tracking of commitments, targets, progress and evidence within the wider Social Value Engine platform. Connecting that delivery record with outcome measurement helps organisations examine whether their work is making the difference they intended.

Before your next tender, take one proposed commitment through that whole process with the people who will deliver it. Check that the activity is feasible, the evidence is available and there is a useful way to learn from the result.

Sources

1. Cabinet Office publication page: PPN 026, The Social Value Model.
2. PPN 026 policy note: scope, timing and action.
3. Guidance on using PPN 026, The Social Value Model.