Why Social Value Matters in Health Tenders
In UK healthcare procurement, social value has become a decisive factor in winning NHS contracts. Public procurement in the UK is governed by the Procurement Act 2023 and the National Procurement Policy Statement, which require public sector procurement and public sector buyers to consider social value as an overarching priority in all procurement decisions. Social value refers to the additional social, economic, and environmental benefits a supplier delivers beyond the core service—such as creating local jobs, reducing carbon emissions, or improving community well-being. Since 2022, NHS tenders have required a minimum 10% weighting for social value, with many placing even higher emphasis. Contracting authorities and public sector bodies play a key role in awarding public contracts, and these entities are required to integrate social value into their procurement processes to ensure public contracts deliver maximum benefit. For suppliers, this shift means that proving impact is no longer optional—it’s central to success.
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What Is Social Value in Tenders?
Social value in tenders is about demonstrating how your business contributes to wider societal goals alongside delivering the contract itself. Under the NHS framework, this includes commitments such as:
- Local job creation and apprenticeships, particularly for disadvantaged groups.
- Environmental sustainability and carbon reduction, for example through net-zero strategies, renewable energy adoption, or waste minimisation.
- Promoting equality, diversity, and inclusion by addressing workforce inequalities, closing pay gaps, and ensuring fair opportunities.
- Enhancing health and community well-being with programmes such as mental health support, preventative health initiatives, and local engagement projects.
The Social Value Act and the Procurement Policy Statement (NPPS) require contracting authorities to incorporate social value objectives and intended outcomes into their award criteria, contract terms, and tender documentation. This ensures that social value is embedded throughout the procurement process and that suppliers are evaluated on their ability to deliver these priorities.
These outcomes go beyond compliance—they show buyers how your organisation is helping build stronger, fairer, and more sustainable communities, while aligning with the NHS’s broader priorities around equity, sustainability, and social progress. It is essential to incorporate social considerations as part of the procurement process to meet legal requirements and deliver meaningful impact.
Understanding the NHS Social Value Model
The NHS Social Value Model (aligned with the UK Government’s framework) defines priority outcomes that suppliers should address. These cover five broad areas:
- Tackling economic inequality (local hiring, apprenticeships, SME subcontracting).
- Fighting climate change (carbon reduction, sustainable supply chains).
- Equal opportunity (closing pay gaps, reducing inequality, tackling modern slavery).
- Well-being (mental health support, community initiatives).
- Innovation and productivity (building an NHS “fit for the future”).
Each bid must include measurable commitments that link to these priorities. For example, instead of writing “We will reduce our carbon emissions,” a strong bid might state: “We will cut energy usage by 30% within 12 months, verified through quarterly reporting.” Social value KPIs should be integrated into the contract lifecycle and contract management processes, with procurement teams using their procurement capability to maximise social value and meet social value expectations.
Social value procurement is about embedding these principles throughout the procurement and contract lifecycle.
Aligning Social Value with NHS Tendering Priorities
To stand out, your social value commitments should be tailored to the buyer’s priorities. NHS Trusts often publish data on local challenges—such as unemployment or health inequalities—that can guide your response. Preliminary market engagement and community engagement are essential to understanding the needs of local communities and local economies, ensuring your approach is relevant and effective. Practical ways to align include:
- Targeting job creation where local unemployment is high, and creating employment opportunities and providing employment support, especially for disadvantaged groups.
- Supporting the NHS’s Net Zero 2045 ambitions with concrete carbon reduction plans.
- Demonstrating how your initiatives will improve community health outcomes, especially in deprived areas highlighted by the Core20PLUS5 framework.
- Partnering with social enterprises and tailoring approaches for certain services to deliver social value and achieve tangible benefits.
By mirroring the language and priorities of each NHS buyer, you show that your proposal is both relevant and impactful. Balancing effectiveness in your approach will help maximise both social and economic outcomes.
Building Tendering Strategies That Prioritise Social Impact
Social value cannot be an afterthought. Successful suppliers build it into their tendering strategies from the start. Some best practices include:
- Early engagement: Talk to NHS buyers ahead of time to understand what social value outcomes matter most to them. This may involve attending market engagement events or reviewing NHS trust social value priorities before bids are published.
- Partnerships: Collaborate with local SMEs, charities, or community organisations to strengthen your impact and demonstrate meaningful connections to the communities you serve.
- Integration: Ensure social value is woven throughout your proposal, with commitments linked to delivery milestones, staff training, supply chain practices, and reporting—rather than isolated in a single section. Integrate social value throughout the procurement process and the commercial lifecycle, ensuring responsible use of public spending and public funds.
- Innovation: Consider going beyond the standard—offer unique initiatives such as health outreach programmes, carbon-cutting innovations, or tailored apprenticeship schemes that competitors may overlook. Support the government’s missions and strategic priorities by including wider socio-economic considerations, fair wages, and reducing carbon footprints in your approach.
- Evidence-based planning: Use data from previous contracts or benchmarks to set realistic but ambitious social value targets, ensuring your strategy is credible as well as aspirational.
It is also important to avoid poor quality bids by aligning with procurement policy notes and the requirements of central government departments and central government contracts.
For example, a facilities management supplier might integrate a pledge to reduce site energy usage by 25% while also creating ten apprenticeships for young people in the local area, both backed by measurable KPIs.
Struggling with your bid strategy? Explore HCI’s tender strategy solutions to help your business stand out.
How to Measure Social Value and Environmental Benefits and Report Them Effectively
Measurement is key. NHS buyers expect clear Key Performance Indicators (KPIs) to track delivery. Examples include:
- Number of local jobs created.
- Tonnes of CO₂ emissions reduced.
- Percentage of contract value spent with SMEs or diverse suppliers.
- Number of community outreach events delivered.
Including social value KPIs and intended outcomes in contract terms and award criteria is essential. Using standard reporting metrics helps demonstrate public benefit, ensures transparency, and maximises value for money.
These metrics should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. Backing your commitments with data from past contracts strengthens credibility. For example: “In our last NHS contract, we reduced waste by 20% and created 15 local jobs—outcomes verified through independent reporting.”
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What Makes a Great Social Value Supplier for Public Sector Buyers?
Great suppliers do more than meet the baseline—they differentiate themselves through:
- Authenticity: Making commitments that are meaningful, not generic promises.
- Evidence: Demonstrating past performance with data and case studies.
- Partnerships: Working with community groups, social enterprises, and supporting local communities and local economies to achieve positive impact.
- Innovation: Offering new solutions, whether through technology or creative community initiatives.
- Consistency: Embedding social value across every contract, building a reputation of trust with the NHS.
Procurement teams with strong procurement capability play a crucial role in prioritising social value and ensuring social value expectations are met throughout the procurement process.
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How HCI can Strengthen Your Social Value Bids
Standing out requires more than intent—it requires insight. HCI’s advanced analytics tools give suppliers the intelligence needed to:
- Benchmark competitors: See what winning suppliers are offering and identify gaps you can fill.
- Set realistic targets: Align your commitments with industry standards and NHS buyer expectations.
- Track procurement trends: Identify where Trusts are investing in sustainability, local jobs, or inclusion.
- Tailor bids to buyers: Access buyer-specific data to customise your social value response.
HCI also supports suppliers in improving their tender documentation and procurement capability, helping them to maximise social value in public procurement. The platform provides guidance to ensure your bids meet the requirements of public contracts and align with the latest procurement policies.
By turning raw data into actionable insights, HCI helps you move from generic promises to evidence-backed commitments—a game-changer in today’s NHS procurement environment. HCI further supports contract management throughout the contract lifecycle, ensuring you deliver social value and meet your obligations under public contracts.
Make Social Value a Strength in Every Health Tender
Social value is no longer a “nice-to-have”—it’s a decisive factor in healthcare procurement. Suppliers that succeed are those who integrate social value early, align with NHS priorities, and provide measurable, data-backed commitments. HCI empowers your business to not just comply with social value requirements, but to stand out as a trusted, innovative partner.
Want to win more health tenders by leading with social value? Contact HCI today.