Social value changes coming - rewarding the pathway and not just the outcome

Andy Burnham has long argued that public spending should deliver more than a contracted service. It should create social value, strengthen communities and expand opportunity. 

The Government's recently published Social Value Model appears to embrace that ambition, placing a much stronger focus on jobs, skills, and opportunities as core outcomes of public procurement. The model centres on creating good jobs, developing talent pipelines, training and retraining workers, and supporting those facing barriers to employment.

At a time when economic inactivity remains high and employers face acute workforce challenges, public procurement has the potential to become one of the most powerful tools for connecting social purpose with economic growth - and those who carry the magic civic wand must use it wisely. Those responsible for awarding public contracts hold a rare kind of power; and like all powerful tools, it can be used narrowly to buy what is needed today, or wisely to shape the society we want tomorrow.

For colleges, the social value shift matters. Colleges sit at the heart of local ecosystems, helping people gain skills, confidence, and qualifications while working closely with employers to address labour market needs. They are also the bridge between aspiration and opportunity. But if social value is genuinely about creating opportunity, then the real challenge extends beyond qualifications.

The forthcoming social value guidance expected this autumn will determine whether the new model simply measures employment outcomes or whether it recognises the much harder work required to make those outcomes possible. 

Too often, procurement frameworks reward organisations for the number of people they employ while overlooking the investment required to help those furthest from the labour market reach the starting line. Yet we all know that the journey into work is neither straightforward, nor linear. Overcoming disability, mental health challenges, long-term unemployment, homelessness, caring responsibilities, or a lack of confidence can require sustained support long before a job offer appears on the table.

Hopefully, the autumn guidance will explicitly reward bidders for strengthening pre-employment pathways into work too. That means recognising organisations that invest in overcoming barriers to employment, creating meaningful routes into jobs for people who might otherwise be excluded.

It should also reward organisations that build strong partnerships with local voluntary, community, faith, and social enterprise organisations. VCFSE partners provide the trusted relationships and personalised support that statutory services struggle to reach, but they often struggle to scale. Despite the system, and due in part to determination from leaders, we do often see these partners succeed, and they are often the ones that create the "gentle employment" opportunities that allow people to build confidence, develop workplace habits, and gain experience before progressing into mainstream employment. If we are serious about inclusive growth, these partnerships should not be viewed as optional extras. They are often the foundation upon which successful employment outcomes are built.

Equally important is the question of supported employment. Some people require ongoing adjustments and support to thrive in the workplace. Success cannot simply be measured by the number of individuals who enter employment. It must also consider whether they remain in work, progress, and achieve long-term stability.