Government launches new Social Value Model

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Organisations that are seeking to win government work must set out how they will also deliver social value priorities, following new measures that were launched last week.

From January 1st 2021, Government departments will use the social value model to assess and score suppliers on the wider positive benefits they bring by delivering the contract.

This means that value for money for the taxpayer can be maximised while also building a more resilient and diverse supplier base.

The social value model which departments will assess contracts on includes:

  • Supporting COVID-19 recovery, including helping local communities manage and recover from the impact of COVID
  • Tackling economic inequality, including creating new businesses, jobs and skills, as well as increasing supply chain resilience
  • Fighting climate change and reducing waste
  • Driving equal opportunity, including reducing the disability employment gap and tackling workforce inequality improving health and wellbeing and community integration

The new approach will apply tests that all bidders, no matter of the organisation size or type, will be capable of meeting and therefore further levels the playing field for the UK’s small businesses, start-ups, voluntary/community sector organisations and social enterprises.

This will mean more opportunities for SMEs and social enterprises to win Government contracts by demonstrating the full extent of the value they would generate.

The Minister for Civil Society, Baroness Barran, said:

“This hugely positive change will ensure taxpayers’ money supports levelling up across the country, encouraging businesses to give back to their communities and offering more opportunities for our dedicated charities, social enterprises and voluntary groups.

This way we can ensure government contracts are helping to tackle economic inequality and support our recovery.”

Commercial teams in all Government departments will be expected to complete training courses in implementing the new model and ensure the maximum social value is derived from each contract.

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