Impact Policy Tracker Policy

Procurement Act



The UK’s Procurement Act, enacted in 2023 and fully implemented in early 2025, represents a major reform of the country’s public procurement framework. It consolidates multiple existing regulations into a single, streamlined structure designed to simplify processes, increase transparency, and modernise the way public contracts are awarded. Key features include a central digital platform for procurement notices and supplier information, along with simplified tendering procedures to facilitate participation from SMEs and social enterprises.

A significant shift is the move towards awarding contracts based not only on cost but also on broader societal benefits. Although the Act itself does not explicitly mention “social value,” it was accompanied by two new Procurement Policy Notes (PPNs) and a revised National Procurement Policy Statement (NPPS), all of which reinforce the importance of social value in procurement. PPN 002 introduces a mandatory Social Value Model that certain contracting authorities must apply, requiring at least a 10% weighting for social value in bid evaluations. The model offers pre-defined goals and success criteria to help authorities embed social impact into their contracting processes. Altogether, these instruments signal a powerful shift in how the UK public sector considers and delivers social benefit through procurement.



Highlights

  • From MEAT to MAT – A Broader Standard for Public Benefit: The 2023 Procurement Act replaces the long-standing “Most Economically Advantageous Tender” (MEAT) principle from the 2015 Public Contracts Regulations with the more holistic “Most Advantageous Tender” (MAT). This shift allows procurement teams to assess bids not only on economic value but on how well they meet broader award criteria, including social and environmental goals. Coupled with new obligations to report KPIs on contracts over £5 million and a legal duty to “maximise public benefit”, this shift strengthens the accountability and impact of public procurement.

  • Builds on Over a Decade of Regulatory Evolution: The 2023 Procurement Act consolidates over ten years of progressive efforts to embed social value in public procurement. Beginning with the 2012 Social Value Act -which required authorities to merely “consider” social, economic, and environmental impacts- the 2023 Act significantly raises the bar by requiring contracting authorities to “have regard to the importance of maximising public benefit,” moving from optional consideration to a binding legal duty.

  • Operationalising Social Value through Standardised Frameworks: The effective integration of social value into public procurement relies not only on legal mandates, but also on the availability of practical tools to define, measure, and embed impact throughout the procurement cycle. Since the introduction of the Social Value Act in 2012, governments and support organisations have developed frameworks and tools like the Balanced Scorecard and unit cost databases -such as Greater Manchester’s, which includes 800+ indicators across sectors- to support implementation. More recently, the Social Value Model, issued alongside Procurement Policy Note 002, provides authorities with a pre-built set of goals and success criteria that they can use when implementing social value in their tenders.

Government’s Role:
Market Participant


Country:
United Kingdom

Policy Type:
Public Procurement for Impact

Year: 2023

Responsible Institution:
UK Parliament

Public Procurement for Impact

What is Public Procurement for Impact?

Governments are among the major buyers of goods and services in most economies, with public procurement accounting for around 13% of GDP in OECD countries. This purchasing power gives them a unique opportunity to promote positive environmental and social outcomes. By moving beyond a traditional cost-focused approach to one centred on “value for money”, they can drive meaningful environmental and social change. This shift considers not only price but also the broader impacts of procurement decisions across the entire lifecycle of goods and services.

To institutionalise this approach, many jurisdictions have developed frameworks and strategies for Sustainable and Socially Responsible Public Procurement (SPP and SRPP), aligning public spending with the Sustainable Development Goals (SDGs). These efforts are often supported by capacity-building initiatives, training programmes, and practical guidance to help procurement officials and suppliers define and measure social and environmental value. Tools such as standardised cost units and certification labels for impact-driven businesses can further support the assessment and verification of social impact in procurement decisions.

For more information on public procurement with impact, visit Social procurement to promote social problem solving (2023) and How Public Procurement Can Spur the Social Economy (2021)