Social Value Workshops
Social Value
“The additional benefit to the community from a
commissioning/procurement process over and
above the direct purchasing of goods, services
and supplies. It is not dependent on the
provision of tools and techniques (though these
are helpful). It’s about changing or adapting
behaviour to make the delivery of social value a
conscious act.” (CPC Ltd)
Includes benefits that are:
• Social
• Economic
• Environmental
The Public Services (Social
Value) Act 2012
‘An Act to require public authorities to have
regard to economic, social and environmental
well-being in connection with public services
contracts; and for connected purposes.’
• Received Royal Assent - 8 March 2012
• Comes into force provisionally – December 2012
Why is this significant?
• First time that public bodies have been
required by law to explicitly consider how
what is proposed to be procured might
improve the economic, social and
environmental well-being of the area.
Requires public bodies, before they start a
procurement, to consider:
1. How the services they propose to procure might
improve the economic, social and environmental
well-being of the area and
How, in conducting the procurement process, it
might secure that improvement
i.e. where relevant, to write the social value objective
into the procurement process
2. Only matters that are relevant to the
procurement and
the extent to which it is proportionate to take
those matters into account
3. Whether to carry out any consultation about
matters in point 1
Application of the Act
• English (and Welsh) bodies that are contracting
authorities under EU procurement legislation
• Applies to contracts for public services
• and
• Public services contracts with an element of
goods or works
• Does not apply to contracts for works or supplies
• Grants?
What does it mean in practice?
• All contracting authorities will have to
consider the relevance of social, economic
and environmental requirements when any
contract for services is commissioned
• Should lead to a policy that addresses
‘sustainable procurement’
• Should bring social value into
commissioning of services
The PS Act and procurement law
• Sits alongside procurement law
• Social requirements can be fully included in
procurement.
• Criteria:
– Reflect the public body’s policy, i.e. relevant to the
subject matter of the contract
– Capable of performance being measured
– Requirements drafted in spec become part of contract
– Defined in ways that do not discriminate against
bidders in EU
Potential Benefits
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Greater value for money
Supports efficiencies agenda
Supports partnership approaches
Joining up of strategic aims
Improved outcomes for service users and
communities
Can encompass assets approach
Gives TSOs opportunity to prove their value
Frees up providers to innovate
Can engage communities in defining priorities
Pan-regional social value
commissioning project
• Project for 10 SHAs, sponsored by NHS North West
• Supported by CPC Ltd
• Aim – support change in attitude and behaviour in NHS
& partners and hence support the development of a
culture in which c&p processes reflect wider social,
economic and environmental policy aims
• Emphasis - ‘Demonstrate the added value that the
presence of the NHS can deliver.’
• Developed toolkit for commissioning
• 8 local pilot projects
Lessons
• ‘What became immediately apparent
during the life of the project was that
‘social value’ … is already being created
as part of the current commissioning and
procurement processes.’
• (page 5 Final report, 2010)
The key to success…
• ‘Any system for measuring social, environmental
and economic value will need to be based on
recognition that the results are relative, occur
over the medium to long term and arise from
negotiation between different stakeholders. This
means that the key to success is to have a
process that is shared by users (in this case,
providers), … it is highly unlikely that a single
“off the shelf” method of capturing, assessing
and quantifying the benefits can be created.’
East Sussex – social value in
practice
• ESCC and NHS grants process to
commission health, social care &
wellbeing outcomes (6 groups)
• 2009 report – recognised contribution that
VCS makes through creating social capital
• Decision to invest £9 million over 3 years
• Grants prospectus approach
• Outcomes approach
Lessons : Multiple Outcomes
Older people
Carers
Disabled people
Building social capital
Support to lead People with
healthier
learning
lifestyles
disabilities
People with
mental health
support needs
Objectives
• Twenty commissioning objectives
• Three common objectives
– quality
– social capital
– value for money
Lessons learned
• Senior leadership important
• Engage in discussion with stakeholders to
develop the concept of social value and
understand how it is created
• Initial scepticism on part of VCOs
• Support for TSOs – understand meaning of
social capital, what was being asked, how they
could respond
• Extra layer of work
• Agree what is valued – what do you wish to
create, nurture, develop or protect?
Next steps
• Link to Future Cornwall, Joint Framework
for Action and the Corporate Performance
measures basket
• Linking to Business Cases and Project
plans
• Training via the Cornwall Leadership
Academy
A Set of Potential Measures for
Social Value?
• The set of measures suggested here are taken from
• Future Cornwall 2010-2030, A Joint Strategy for Vision
and Objectives, and are mapped against
• A Joint Framework for Action from the Public Sector in
Cornwall (JFA) and the Council’s potential corporate
basket of performance measures.
• The ‘Future Cornwall’ strategy has evolved from the
Cornwall Sustainable Community Strategy and has wide
buy in by public sector group membership agencies and
other partners.
• It was influenced by the Place Survey, and many other
surveys and pieces of intelligence. It therefore seems a
good policy to start from in implementing the Public
Services (Social Value) Act 2012.
NB All outcomes are from Future Cornwall and those marked * are also referenced in the
JFA
Achieve a leading position in
sustainable LivingEnvironmental outcomes
• Increased resilience to rising costs of energy*
• Low carbon and energy efficient homes and
buildings
• Reduced need to travel*
• Local generation of renewable energy*
• Careful use of resources, minimising waste and
re-using waste products*
• Consumption of locally produced food*
• Investment in and promotion of sustainable use
of natural resources
Bring Cornwall out of recession
focussing on the low carbon
economy” – Economic outcomes
• Build and enhance a robust network of small
and medium businesses to secure Cornwall’s
economic stability
• Promote smaller settlements to be centres of
employment*
• Connect people, communities, businesses and
services in a way that is reliable, efficient, safe,
inclusive and less reliant on fossil fuels*
• Creating economic conditions to maximise
existing skills and stimulate news skills that
support new ways of working
Improve resilience and selfsufficiency of communities –
Social outcomes
• Promote equality of opportunity and wellbeing*
• Improve access to quality services
• Make it easier for people to lead healthy, active
lifestyles*
• Increase participation in influencing local decision
making*
• Encouraging individuals to engage in designing and
shaping services in their communities*
• Local citizens and neighbourhood groups leading
projects and participating in the governance and delivery
of services in their communities