New Procurement Law: Why Social Value is now a must for winning contracts

Public sector procurement in the UK has just undergone a major shake-up with the introduction of the Procurement Act 2023, which came into force this week (24 February 2025). 

The legislation fundamentally reshapes the way public bodies across the UK spend more than £400 billion annually on goods and services. With a greater emphasis on transparency, ethical business practices, and public benefit, the new law places Social Value at the heart of procurement decisions – as implemented through a new national procurement policy statement (discussed below).

Understanding the Procurement Act 2023 and its implications

The Procurement Act 2023 replaces previous EU regulations in the UK with a simpler, more transparent, and flexible system. A key shift is the requirement for public sector buyers to prioritise the ‘most advantageous tenders’ (MAT) rather than simply the ‘most economically advantageous tender’ (MEAT). This change encourages a broader assessment of value for money that includes Social Value alongside financial costs.

Key changes introduced by the Procurement Act 2023 include:

• A single digital supplier platform. Businesses will now only need to register once to be considered for multiple contracts, reducing administrative burdens.
• Open frameworks. Unlike previous closed frameworks, new procurement rules allow suppliers to join an existing framework at set intervals over an eight-year period, ensuring continuous opportunities for new entrants.
• New exclusion rules. Poor performance, unethical behaviour, and failure to meet procurement criteria could lead to exclusion from future bids.
• Faster public procurement. Authorities can make rapid purchases to protect life, health, public order, or safety when needed.
• Mandatory consideration of the government’s new National Procurement Policy Statement (NPPS).

This last point is significant because the updated NPPS, which also came into effect on 24 February 2025, sets out a refreshed set of national priorities that public bodies must consider when awarding contracts. The three primary focus areas of the new NPPS are:

• Driving economic growth. Maximising procurement spend with small businesses, social enterprises, and voluntary organisations. Encouraging suppliers to offer fair pay, high-quality jobs, and career progression opportunities. Supporting innovation.
• Delivering social and economic value. Supporting national and local growth plans by working collaboratively with public and private sectors. Ensuring suppliers uphold ethical and sustainable business practices, addressing issues such as modern slavery, corruption, and environmental impact. Eliminating late payment of invoices in supply chains, benefiting smaller suppliers. 
• Building commercial capability. Enhancing procurement teams’ skills and capabilities to drive value for money.

What does this mean for companies looking to win public sector work?

The UK government has been embedding Social Value into procurement since 2012 through the Social Value Act, but the new Procurement Act and the NPPS consolidate its importance even further. Simply mentioning Social Value in a bid is no longer sufficient, businesses must demonstrate clear, measurable contributions that align with government priorities.

So, to increase your chances of winning contracts, your business must effectively communicate and evidence its Social Value impact. We’ll explore ways to approach this challenge in our next article ‘Winning public sector work: How to communicate your Social Value effectively‘.

• Content Coms’ B Corp Certified Team offers social impact reporting to companies of all sizes and types. Click here to find out more about how we can help your next bid stand out.