Social Value

Social objectives are central to the mission and vision of a social enterprise, so it is vital that a social enterprise can demonstrate and evidence the social value it creates. Social value has been loosely defined as:

“the additional benefit to the community from a commissioning/procurement process over and above the direct purchasing of goods, services and outcomes”.

Social Enterprise UK has prepared a briefing about the meaning and benefit of Social Value and an overview of changes to policy in this area.

 

The Public Services (Social Value) Act 2012

This new piece of legislation reflects key policy changes about approaches to social value when considering how to provide public services. The Act, which became law in March 2012, aims to strengthen the social enterprise business sector by making ‘social value’ more relevant and important in the placement and provision of public services. Once in force it will require public bodies to consider economic, social or environmental well-being (social value) ahead of procurement.

The Act applies to the provision of services, or the provision of services together with the purchase or hire of goods or the carrying out of works. The full wording of the Act can be found here.

In Your Area

National and Local strategies have been developed to promote economic growth including the social economy and social enterprise. To read more about your local area