Expert Procurement Act Consultants
Quick-start Guide to the Social Value Procurement Act (2023)
Compliance is critical
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The Social Value Procurement Act (2023), effective February 2025, aims to simplify and enhance public procurement while making it easier for suppliers, including small businesses and social enterprises, to engage with the public sector. It seeks to improve transparency and remove barriers for new entrants.
A key aspect is recognising procurement as a tool to generate wider public benefits, emphasising Social Value—the positive impact an organisation has on society beyond financial profit. Many businesses contribute to Social Value unknowingly through initiatives such as volunteering, sustainable sourcing, apprenticeships, local employment, and carbon reduction but too often it’s not enough and they don’t have the tools or in-house skills to evidence it.
Shifting procurement towards a broader understanding of value can drive meaningful change, benefiting people, communities, and the economy. While cost-efficiency remains a priority, factors such as job creation, supplier resilience, emissions reduction, and innovation now hold greater weight in decision-making.
A major shift under the Act is the transition from awarding contracts based on Most Economically Advantageous Tender (M.E.A.T.) to Most Advantageous Tender (M.A.T.). This ensures procurement decisions consider wider community benefits, such as local job opportunities and environmental impact.
Businesses that actively deliver Social Value not only support their communities but also gain a more resilient and motivated workforce, creating a positive cycle where all stakeholders thrive.
The 8 Challenges of Procurement Act Compliance
Why is measuring Social Value so complex?
1. Complexity of Compliance
The Social Value Procurement Act (2023) introduces stringent requirements for public sector contracts, mandating that organisations demonstrate and quantify their contributions to Social Value. Compliance is complex as businesses must align their procurement strategies with broad policy objectives, such as job creation, carbon reduction, and supplier diversity, while ensuring their operations remain commercially viable.
2. Cost of Social Value Software and Frameworks
Many organisations rely on specialist Social Value software platforms to track, measure, and report their impact. These platforms, such as those using the National TOMs (Themes, Outcomes, and Measures) framework, come with licensing fees, implementation costs, and ongoing administration expenses. The need for training staff to use these systems effectively further increases costs, particularly for smaller businesses with limited resources.
3. Administrative Burden
Demonstrating compliance requires continuous data collection, analysis, and reporting. This involves tracking metrics such as employment impact, emissions reductions, and local procurement percentages. Many companies struggle with the administrative workload of compiling and verifying Social Value data, particularly when supplying multiple public sector clients with differing reporting requirements.
4. Evidencing Delivery of Social Value
Public sector buyers demand clear, auditable evidence of Social Value contributions. This means businesses must maintain detailed records of their initiatives, provide quantifiable impact assessments, and undergo audits. The process is time-consuming and may require external verification, adding to operational costs. Furthermore, proving long-term benefits—such as how an apprenticeship programme improves local employment—can be challenging and resource-intensive.
5. Shifting from M.E.A.T. to M.A.T.
The transition from Most Economically Advantageous Tender (M.E.A.T.) to Most Advantageous Tender (M.A.T.) means contracts are no longer awarded solely based on price and quality. Instead, bidders must demonstrate Social Value alongside competitive pricing. This forces businesses to invest in Social Value initiatives upfront without guaranteed contract success, increasing financial risk.
6. The Risk of Non-Compliance
Failure to provide sufficient Social Value evidence can result in lost contract opportunities, reputational damage, and potential exclusion from future public sector tenders. For businesses unfamiliar with Social Value requirements, the learning curve can be steep, requiring investment in legal advice, consultancy, or additional in-house expertise to navigate compliance effectively.
7. Impact on Smaller Businesses
While large corporations can absorb the costs of compliance, SMEs and social enterprises face disproportionate challenges. They often lack the resources to implement sophisticated measurement frameworks or dedicate personnel to Social Value reporting, making them less competitive in public procurement.
8. Continuous Evolution of Standards
Social Value expectations are constantly evolving, with increasing emphasis on environmental impact, diversity, and local economic benefits. This means compliance is not a one-time effort but an ongoing process that requires businesses to adapt, update policies, and stay informed about changing regulations—adding to long-term costs.
In summary, compliance with the Social Value Procurement Act (2023) has been both costly and complex due to the need for specialist software, extensive data collection, administrative burden, and the challenge of proving long-term impact. While the Act drives positive societal change, it places significant financial and operational demands on businesses, particularly SMEs and those unfamiliar with structured Social Value reporting.
So what if there was a Managed Service alternative?
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Rapid Compliance via the ESG Pro SV:SI Programme
An affordable and scaleable service for Procurement Act compliance
Social Value compliance is now mandatory—but it doesn’t have to be difficult or expensive.
The Social Value Sustainability Initiative (SVSI) by ESG Pro eliminates the need for costly consultants, software, lawyers, and accountants while ensuring your business meets all Social Value Procurement Act (2023) requirements.
Forget complex frameworks and administrative headaches—SVSI simplifies compliance into a seamless, accessible, and self-funding process. Our initiative enables businesses to map, track, and report Social Value effortlessly, ensuring procurement drives measurable social and environmental benefits without straining your budget.
How SVSI Works for You
✅ No costly consultants – We handle the heavy lifting, so you don’t have to.
✅ No expensive software – Our streamlined system replaces complex tools.
✅ No legal headaches – Fully aligned with the latest procurement laws.
✅ No financial burden – SVSI is self-funding, making Social Value compliance affordable.
With SVSI, compliance isn’t just a box-ticking exercise—it’s an opportunity to reduce risk, enhance sustainability, and build stronger supply chains while contributing to tangible community impact.
Join the movement. Simplify Social Value compliance today.
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