Public Services (Social Value) Act 2012

Lord Hamilton of Epsom Excerpts

Thursday 27th February 2020 Lords Chamber

[Baroness Barran]

I absolutely agree that social value is central to our procurement process: it is a massive lever. It is £49 billion of central government expenditure, but total public sector expenditure was £284 billion in the last financial year, so it is one of the biggest levers we have in terms of our focus on place and on levelling up. The 10% is a minimum, and my experience going around the country is that areas frequently go above and beyond when they get this. I was in Durham last week, where more than 55% procurement is through social value, and Manchester has set a minimum of 20%.

[Lord Hamilton of Epsom (Con)]

How do the Government actually measure social content when they come to award these contracts?

[Baroness Barran]

The Government are developing a measurement framework. There have been two approaches. Most local government procurement uses a form of financial metric. Central government procurement, in consultation with the voluntary and community sectors, uses a more qualitative approach. My colleague the Crown rep for the voluntary and community sectors is working very hard to make sure that this is embedded effectively.