Procurement update
PPN 026 resets social value enforcement. Jobs and skills are now the scorecard.
From 1 January 2027 the new Social Value Model replaces PPN 002 with a tighter focus: fair work, training and access to employment in every postcode.
The UK procurement landscape is undergoing a significant transformation. The shift from the broad PPN 002 framework to the highly focused PPN 026 represents a structural reset in how the Public Services (Social Value) Act 2012 is enforced by central government.
This update narrows the definition of social value to prioritise British jobs, skills and opportunities in every postcode, shifting the evaluation matrix from qualitative promises to strict contractual accountability.
Who and what is eligible
PPN 026 applies to central government departments, their executive agencies and non-departmental public bodies when they let covered procurements. Use the checks below to see where your next bid sits.
Which contracts are covered
Above-threshold procurements valued at £1 million or more including VAT. Below that, the model is not mandatory, though many authorities still ask jobs-and-skills questions voluntarily.
Which buyers apply it
Central government and its arm's-length bodies. Local authorities and the NHS are encouraged rather than required, but many already mirror the model in their own social value questions.
Which suppliers it affects
Every bidder on a covered tender, whatever its size. SMEs are not exempt from scoring, so a credible, evidenced Good Jobs and Skills offer matters for organisations of any scale.
The evolution: PPN 002 vs PPN 026
To position your organisation effectively, it is critical to understand how the framework has compressed from a wide-ranging menu of options into a singular, sharp focus.
| Feature | PPN 002 model (mandatory Oct 2025) | PPN 026 model (applies 1 Jan 2027) |
|---|---|---|
| Strategic core | Aligned broadly across the Labour Government's Five National Missions (e.g. green energy superpower, health, crime reduction). | Focused explicitly on local economic growth, employment and skills. |
| Framework breadth | 8 Policy Outcomes and 17 Model Award Criteria (MACs) covering climate change, supply chain diversity and modern slavery. | 2 Policy Outcomes and 6 Model Award Criteria (MACs). Environmental and supply chain options are removed. |
| Minimum weighting | 10% minimum weighting on all covered, above-threshold tenders. | 10% minimum for contracts up to £5m; mandatory 20% minimum for contracts over £5m. |
| Thresholds | Above-threshold contracts under the Procurement Act (approx. £139k+). | Covered procurements valued at £1 million or more (inclusive of VAT). |
Sources: Cabinet Office, PPN 026: The Social Value Model; Plan for Change — Five National Missions.
How ready are you for PPN 026?
Score your organisation against the two pillars, Good Jobs and Skills, in twelve questions. You get a breakdown per pillar and an indicative bid readiness band.
Writing the response? Start from the bid pack
Editable response templates for both pillars, the KPIs your commitments become on award, and a deliverables checklist for bid, mobilisation and delivery.
Live tender calendar
Real Find a Tender notices, refreshed automatically.
Live PPN 026 threshold tracker
The notices currently on the live tender calendar, grouped by the PPN 026 value bands, so you can see at a glance which weighting rule each live opportunity falls under.
Key points to understand
Only two pillars remain
The new model collapses the previous structure into Good Jobs and Skills. If your social value proposition relies on net-zero targets or charity donations, those will no longer score on these central government tenders.
Large contracts are high stakes
Social value now accounts for up to 20% of the total score on contracts over £5 million. This section can no longer be treated as an afterthought.
Commitments become contract KPIs
Pledges made at bid stage are baked into the contract as enforceable Key Performance Indicators. Failing to deliver on employment or apprenticeship commitments can lead to penalties and affect future bids.
The question is no longer whether social value matters to winning work, but whether your organisation can evidence it better than the bidder next to you.
Why this gives urgency to the 1001 Entrepreneurs Programme
The two remaining PPN 026 pillars — Good Jobs and Skills — are exactly what the 1001 Entrepreneurs Programme delivers. Corporate sponsorship funds structured training, mentoring and practical business support for underserved founders, with attendance, progress and outcomes recorded as they happen.
That means your social value commitment is not a promise on a page. It is a defined number of funded places, delivered against a documented methodology, with evidence you can cite in a bid response or ESG statement.
- Directly supports skills development and access to employment
- Fixed £400 cost per place gives a clear, defensible calculation
- Quarterly dashboards and an annual impact statement for audit trails
- Deliverables can be written into PPN 026 bid responses and contract KPIs
Example sponsorship
£10,000
At £400 per place, a £10,000 sponsorship funds 25 training places for underserved founders. Each place includes structured training, mentoring, practical support and follow-up outcome tracking.
Prepare before January 2027
Organisations that can already demonstrate jobs-and-skills outcomes will have an advantage when PPN 026 becomes mandatory. The window to build that evidence base is now.