Social Value in the NHS – New Procurement Playbook Sets the Scene

In July 2025, NHS England published the NHS Social Value Playbook. The document sets out guidance on how social value is to be treated in NHS procurement, both:

• During the transitional period between PPN06/20 and PPN 002 (February to September 2025)
• Once PPN 002 is in effect exclusively (from October)

This is significant for anyone concerned with social value in public procurement, if for no other reason than the enormous proportion of  central government spending represented by NHS budgets:

• In 2024-2025, NHS England’s budget stood at £197 billion
• The NHS regularly estimates its number of suppliers to be in excess of 80,000
• In 2022-2023, NHS England was responsible for £159.26 billion (45.08%) out of a total £353.3 billion allocated to Arm’s Length Bodies (ALBs)

Not only that – the updated Social Value Model has made “Building an NHS Fit for the Future” one of its five central Missions. 

So, even organisations that don’t do business directly or indirectly with the NHS can benefit from understanding the Playbook. It’s likely to serve as a model for how other central government and ALBs apply PPN 002 and the new Social Value Model. 

Where the NHS Stands on Social Value

Since April 2022, PPN06/20 and the Social Value Model have been applicable to the commissioning and purchase of goods and services by NHS organisations, and organisations acting on their behalf.

The new Playbook replaces the original 2022 guidance, “Applying net zero and social value in the procurement of NHS goods and services”. 

The mention of net zero is important here, because the NHS was committed to this goal two years before adopting the Social Value Model and net zero continues to play a privileged role throughout the Playbook.  

Coming in the wake of the government’s 10 Year Health Plan’s recent publication, the Playbook is able to go into extensive and current detail about the policy priorities the NHS is looking to promote through its procurement:

• Reducing health inequalities, in line with the Core20PLUS5 approach. This focuses on:
  • The most-disadvantaged 20% as identified in the Index of Multiple Deprivation (IMD)
  • Specific disadvantaged groups identified as a local level (PLUS population groups)
  • Five clinical areas in need of improvement: maternity; severe mental illness; chronic respiratory disease; early cancer diagnosis; and hypertension (plus asthma, diabetes, epilepsy, oral health and mental health for children and young people)
• Creating resilient businesses and opportunities for quality employment and skills development
• Improving innovation and supply chain resilience
• Tackling climate change and reducing waste
• Changing how care is delivered from hospital to community, analogue to digital, and sickness to prevention

A useful flowchart is provided in the Playbook, showing each step in the procurement process where social value needs to be taken account of: 

Social Value, Net Zero, and Modern Slavery

It has long been a central tenet that social value considerations have to be additional to the core deliverables of a contract. NHS-specific commitments and organisational priorities mean that the Playbook clarifies 

“Sustainable procurement practices to reduce carbon footprints, minimise waste and promote use of green technologies must be included in all NHS contracts to support the NHS ambition to achieve net zero for the emissions we influence, through the goods and services we buy from our partners and suppliers by 2045”

Carbon-related initiatives may therefore be dealt with as either:

• Technical/core specification – where suppliers can reasonably demonstrate reduction in their scope 1, 2 or 3 emissions as part of the delivering the contract
• Social value questions – where the sustainability offer would be additional to the core deliverables of the contract, under Model Award Critera 4a and 4b of the new Model

The Playbook also says:

“Contracts deemed high risk for modern slavery should consider including modern slavery in the core specification.”

If not included in the core specification, “Identifying and managing the risks of modern slavery” is a social value-relevant goal (MAC 1e).

Given other organisations’ commitments to these goals, the NHS Playbook could provide us with a model of how the “additionality” question may be clarified more broadly. 

Examples Provided in the Playbook

An example of how this will work in practice is given in one of the example Social Value Procurement Frameworks provided – on estates:

“Fighting climate change or net zero should be a core part of the contract offer for estates procurements that impact the use of energy, water, and waste. In addition, it is mandatory to include the NHS Net Zero Building Standard as a core part of the contract for construction and refurbishment projects over £25m and best practice to include the standard for projects below this threshold. Fighting climate change (carbon reduction) may be included in the specification or core contract deliverables. If so, social value questions should cover additional social value themes and questions.”

The Playbook suggests skills and training, local job creation, and using premises to promote health and social goals as possible themes. Examples of deliverables provided include:

• Paid training opportunities for NHS or supplier staff (including carbon literacy, data analysis, chartered institute membership)
• Supported internships, providing long term work experience placements for young adults with learning disabilities
• Delivery of Princes’ Trust or other skills development courses
• Social and wellbeing schemes that also reduce waste, such as Men in Sheds, Trussell Trust

The Playbook provides similar framework examples for:

• Clinical Procurement
• Workforce, Training, and Education
• Digital Procurement

NHS Social Value KPIs

The 2025 Social Value Model emphasises the importance of contract management and reporting, calling for the inclusion where possible of Social Value KPIs in contracts. The NHS is no exception: 

“Social value key performance indicators (KPIs) need to be included in the contract to track delivery of the commitments made by suppliers and providers.”

In the case of a supplier committing to delivering career development sessions for young people, it suggests the following structure for a delivery plan:

Identify schools and colleges

Example metrics:

• promotional materials developed
• no. of schools and colleges contacted
• no. schools and colleges onboarded

Deadline: September – November

Lead: Name

Initial engagement sessions

Example metrics:

• no. sessions (virtual or face to face)
• co-design reasonable adjustments

Deadline: November – December

Lead: Name

Deliver CV writing sessions

Example Metrics:

• no. places offered
• no. sessions delivered
• no. students attended

Deadline: January – March

In this way:

“The KPIs should be comprised of a deliverable, target and means to measure progress and form part of the contractual obligations of the supplier.” 

Of course, each NHS body will implement social value in its own way, in line with its own organisational priorities, and local needs. But this Playbook is a very useful document for understanding the overarching approach to social value that the single biggest player in central government procurement is following. 

We hope you found our explainer helpful!