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There has been a lot of talk about delivering social value in procurement and, with it, uncertainty among social landlords and their contractors about how to measure results and quantify success.

Some think the Procurement Act will provide a magic bullet. But it’s not that simple.

The act will provide added incentive to authorities and contractors to work out what is required, how to deliver it and assess its benefit to local communities. While not explicitly referencing social value, it requires buyers to prioritise “maximising public benefit”, which can be interpreted as an emphasis on social value.

It’s also moving focus from the “most economically advantageous tender” (MEAT) to the “most advantageous tender” (MAT), giving buyers the power to look beyond cost and consider broader public benefit.

But while a new law might set the direction, it doesn’t guarantee action, and it’s still left to housing providers, local authorities, framework providers and suppliers to work out how best to interpret the guidance.

A common mistake is assuming that simply adding social value clauses to contracts will automatically lead to meaningful outcomes. But it’s easy for social value to become a tick-box exercise, where commitments are made but not followed through.

Social value needs to be planned from the start

One of the biggest issues is how social value is defined. Too often it’s left to contractors to outline what this looks like after they’ve won the work. That’s a mistake. How do you enforce social value once they’ve already built 100 houses, say?

Take apprenticeships. A contractor might claim to deliver social value through the local economy by creating 10 apprenticeship roles, but if those placements are based in another part of the country, does this benefit the local community?

The same goes for supply chains. Buying from local businesses sounds good, but if materials are sourced from a distributor hundreds of miles away, how much local impact is really being delivered? It can be a complicated equation.

What is key is that suppliers are delivering the type of impact that speaks to local people, community and public sector clients.

Social value needs to be part of the conversation from the outset, before a contract is awarded. It needs to be relevant to the community, measurable and followed through.

And the best results happen when housing providers take the lead. They should be setting clear priorities based on what their communities actually need.

A community anchor is a trusted, place-based organisation that plays a pivotal role in supporting and empowering local communities. These anchors can be housing associations, local authorities, charities or other grassroots organisations deeply embedded in their areas. They provide stability, resources and advocacy, helping to build social cohesion, economic resilience and local capacity.

By leveraging partnerships and investing in long-term community development, they generate greater social impact, addressing local needs holistically and enabling communities to thrive.

However, not all local authorities or housing associations automatically serve as community anchors; their impact depends on how actively they engage, collaborate and champion local voices. Nevertheless, all place-based organisations have the potential to become community anchors if they prioritise meaningful, community-led change.

Of course, not all organisations will know what they need, and the same goes for contractors working out what they can provide. And it is here that framework providers can play a crucial role. They can ensure that social value is built into pre-contract discussions, monitored throughout the project and a contractor’s obligations are measured.

Impact, not input, is what matters. It is with measurement that we need an industry shift. Too often, procurement teams focus on numbers – how many apprenticeships were created, how much money was spent locally, how many hours were volunteered in the community.

What they should be doing is looking at the difference those things make. Impact, not input.

Here’s an example. When I was working for the charity HACT, which drives social value in social housing, we looked into a long-term employability programme that was measured for social value. The client could not understand why there was so little social impact calculated… until it became clear that the local area was almost solely populated by people over 65.

Framework providers should guide. It’s like handing someone without trade expertise a power drill: they know it’s important, they understand what it’s meant to do, and they can probably switch it on. But without the right training and direction, they’re not going to build anything useful.

The same is true for social value. The new act and procurement guidance have handed the sector a powerful tool, but unless procurement teams are given the guidance, resources and accountability they need to use it properly, it won’t deliver the outcomes people hope for.

The real question is not how many initiatives get started, but what long-term impact they have. Did apprenticeships lead to real jobs? Did local investment create lasting economic growth? Did community initiatives improve people’s lives? Social value should be tracked with the same rigour as financial results, with clear reporting and accountability throughout.

Incidentally, this is where small and medium-sized enterprises can play a big role, because they are often embedded in the local community and instinctively understand its needs.

The Procurement Act is a start – but will it be enough? At its core, the act is an opportunity. It provides a starting point for embedding social value into procurement, but the real test will be how well it is put into practice.

LHC Procurement Group recently interviewed procurement teams across the UK, and one clear theme emerged: clarity is still required over what social value really means and how it should be delivered.

Only time will tell whether the Procurement Act will help bring about clearer thinking, and consequently the right social value every community needs.

As published in Inside Housing Magazine.