PPN 026: what suppliers need to know

In shortCabinet Office PPN 026 (published 5 August 2026) introduces a revised Social Value Model for central government, focused on good British jobs, skills and opportunities. It applies to covered Procurement Act 2023 procurements of £1 million or more (including VAT), with a minimum social value weighting of 10% from £1m to under £5m and 20% at £5m+, and at least one social value KPI on contracts of £5m+. In-scope organisations must apply it to procurements commenced on or after 1 January 2027; detailed guidance is due in autumn 2026.

What PPN 026 is

Procurement Policy Note 026: The Social Value Model was published by the Cabinet Office on 5 August 2026. It sets a revised Social Value Model for central government procurement.

For in-scope contracts, social value is defined as taking account of how a supplier will work for communities to provide good British jobs, skills and opportunities in every postcode. That is a narrower focus than the previous model: jobs and skills sit at the centre, rather than a broader mix of themes.

The model in Annex A has two outcomes and six model award criteria (MACs):

Outcome 1 — Good jobs: create and/or retain high-quality jobs (1a); fair working conditions (1b); fair pay (1c).
Outcome 2 — Skills: training / retraining (2a); in-work progression (2b); talent pipeline (2c), including apprenticeships, work placements and related opportunities.

Detailed sub-criteria, evaluation methods and a list of community programmes are due in the accompanying guidance in autumn 2026.

Who it applies to (and who it does not)

PPN 026 applies only to central government departments, their executive agencies and non-departmental public bodies ("in-scope organisations"). Other public-sector contracting authorities may choose to adopt the same approach, but they are not required to by this PPN.

It applies only to covered procurements valued at £1 million total contract value inclusive of VAT or above, commenced under the Procurement Act 2023. It does not apply to private utilities contracts, or to contracts whose primary purpose is overseas delivery (for example embassies).

For frameworks, social value should be assessed at both framework and call-off, in line with the PPN 026 guidance due in autumn 2026. Under the Act, for social value to be assessed at call-off it must also have been assessed at framework level (section 46(8)).

Local authorities, NHS bodies and education buyers are outside the mandatory scope of PPN 026, though many already score social value under their own policies and under the Public Services (Social Value) Act 2012 where it applies. Always read the tender documents for the buyer in front of you.

Timing: mandatory from 1 January 2027

In-scope organisations should apply PPN 026 to procurements commenced on or after 1 January 2027. A procurement is treated as commenced when a tender notice is published.

For Procurement Act 2023 procurements commenced before that date, buyers are encouraged to move to the new model but may keep using the previous edition during the transition if switching would need disproportionate resources or would invalidate earlier market engagement.

Associated guidance is due in autumn 2026. Until that lands, treat the PPN and Annex A as the binding policy text, and expect more detail on sub-criteria, metrics, community programmes and framework/call-off practice.

Minimum weightings and KPIs

In-scope organisations must:

Select a relevant delivery outcome from Annex A with its corresponding award criteria (and future sub-criteria), and include it in the tender documents.
For contracts valued at £1m and above but less than £5m, apply a minimum 10% weighting (or equivalent) of the total score to the social value criteria.
For contracts valued at £5m or above, apply a minimum 20% weighting (or equivalent).
Where absolute methods such as Price per Quality Point (PQP) or a value-for-money index are used, that 10% or 20% applies to the non-price (quality) score.

For contracts with an estimated value of £5 million or more (including VAT, valued under section 4 of and Schedule 3 to the Act), buyers should set at least one social value KPI, in addition to the three or more KPIs required by section 52(1) of the Procurement Act 2023. KPIs must be published on the central digital platform and reported on at least once every 12 months via the contract performance notice.

Poor performance against social value KPIs can be taken into account when considering whether there are grounds to exclude a supplier from future tenders.

How PPN 026 relates to PPN 002

PPN 002 set the previous Social Value Model and a minimum 10% social value weighting for in-scope central government procurements commenced on or after 1 October 2025. Our main guide covers that regime in full: social value in tenders (PPN 002 and PPN 026).

PPN 026 is the revised edition of that model for central government. From 1 January 2027 it is the version in-scope organisations should apply to new covered procurements of £1m+. Until then, buyers may still use the previous edition during the transition. In practice:

Until 1 January 2027: expect PPN 002-style 10% minimum weighting on in-scope above-threshold work, unless the buyer has already moved to PPN 026.
From 1 January 2027: for covered £1m+ central government procurements, plan for the jobs-and-skills model, the £1m floor, the 10%/20% banded weightings, and social value KPIs on £5m+ contracts.

If you still bid for local authority, NHS or education work, keep your broader social value evidence: those buyers are not bound by PPN 026 and often still score community, environmental and other outcomes.

What buyers will look for

Buyers must still meet the Act's rules on award criteria: criteria must relate to the subject matter of the contract, be proportionate, treat suppliers equally and not discriminate against treaty-state suppliers (sections 12, 23 and 90). The PPN also says selected criteria should not create unnecessary burdens or barriers to participation. In-scope organisations should research market conditions, including whether SMEs, VCSEs or international bidders are likely, before choosing which MACs to use.

Expect evaluation to test whether your offer is:

Relevant to the contract — jobs, skills and opportunities tied to delivering this work in the places it will be delivered.
Specific and measurable — numbers, locations, cohorts and reporting methods you can stand behind once they become contract terms or KPIs.
Proportionate — realistic for the contract value, duration and your size of business.
Community-focused where asked — support for people facing barriers to employment, and any named community programmes listed in the future guidance pack.

Target cohorts flagged for future guidance include people not in employment, education or training (NEETs), people moving from education into work, people with a long-term health condition or disability, care leavers, and other groups set out in the autumn guidance. Target skills will draw on government skills strategies (for example skills for clean energy jobs).

Use our free social value planner to turn buyer outcomes into measurable commitments you can deliver and report. For how those scores sit in the overall award, see how tenders are scored and the wider Procurement Act 2023 supplier guide.

How to prepare evidence now

You do not need to invent a new corporate social value brand overnight. Build a pack that maps to the jobs and skills model:

Workforce baseline — headcount by location, pay practices that go beyond the statutory minimum where you already do so, retention and progression routes, trade union or employee-voice arrangements, and flexible working you actually offer.
Skills and pipeline — apprenticeships, traineeships, work placements, retraining programmes and partnerships with colleges, Jobcentre Plus or local anchor institutions you already use or can stand up for a live contract.
Local delivery map — where you recruit, subcontract and train for the regions you bid in. Pipeline notices and award data help you see where central government work is landing; start with our free tender search and the UK tender market Q3 2026 report.
Reporting — how you will capture delivery against any social value KPI (people supported, apprentices started, training days, jobs created or retained) so contract managers can report on the central digital platform.
Supply chain — SME and VCSE subcontracting you can evidence, including prompt payment. Main contractors often need specialists to help deliver jobs-and-skills commitments; see subcontracting on public-sector contracts.

Only commit to what you can deliver on that contract. Under PPN 026, commitments are monitored through contractual mechanisms, and weak KPI performance can follow you into future competitions.

How West Gate can help

Spot in-scope opportunities early: search central government and other UK notices free with our tender search, or set up free tender alerts for your sectors and regions.
Plan the social value response: we help you match the buyer's selected outcomes and MACs to evidence you can defend, without over-committing.
Write and review the bid: West Gate bid writers handle research, drafting, coordination and deadline pressure. West Gate has a 90%+ win rate† and does not support competing bidders on the same opportunity.
Talk it through: book a free 30-minute call if you are unsure whether a live tender falls under PPN 002, PPN 026 or a different buyer's own model.

† Figures based on bids West Gate submitted and contracts awarded in 2025.

Frequently asked questions

What is PPN 026?

PPN 026 is the Cabinet Office Procurement Policy Note that sets the revised Social Value Model for central government, focused on good British jobs, skills and opportunities. It was published on 5 August 2026.

When does PPN 026 apply?

In-scope organisations should apply it to covered procurements of £1m+ (including VAT) under the Procurement Act 2023 commenced on or after 1 January 2027, meaning from the date the tender notice is published. Guidance is due in autumn 2026.

What is the minimum social value weighting under PPN 026?

For in-scope central government contracts, at least 10% of the total score for contracts from £1m to under £5m, and at least 20% for contracts of £5m or more. Where PQP or similar absolute methods are used, that share applies to the non-price criteria.

Does PPN 026 replace PPN 002?

PPN 026 is the revised Social Value Model for central government. From 1 January 2027 it is the edition in-scope organisations should apply to new covered £1m+ procurements. During the transition, buyers may still use the previous edition (PPN 002) for procurements commenced earlier under the Act.

Does PPN 026 apply to local councils or the NHS?

Not mandatorily. It applies to central government departments, their executive agencies and non-departmental public bodies. Other contracting authorities may choose to adopt it. Always check the tender documents.

Sources

General information, not legal advice. Always follow the tender documents and take legal advice where needed.

PPN 026 Social Value Model: what suppliers need to know