Social Value is considered as the wider benefit gained by a local community from the delivery of public contracts. This can be the community as a whole, disadvantaged individuals, minorities, businesses and VCSEs, as well as the environment through the better spending of public money. At a simple level, Social Value can be be split into 3 areas:
Social Value Areas
| Social|| Economic|| Environmental|
Includes activites such as:
Volunteering in the community | Hosting community events at your business | Flexible working policies for staff
Includes acitivites such as:
Hosting work placements / creating apprenticeships / creating jobs | Employing local people and spending with local suppliers | Mentoring and providing career advice to young people
Includes activites such as:
Reducing energy / water use and carbon emissions | Supporting improvements to public spaces and parks | Using sustainable products and materials
By ensuring Social Value is included in contracts awarded, our Partners hope to secure better outcomes and possibilities for their local communities.
Social Value can be a specific requirement within a contract specification (part of the core requirement), or can be something proposed and delivered by a supplier in addition to the core requirements of a contract. Both approaches are of value to STAR and our Partners.
Why Consider and Deliver Social Value?
Because it is the right thing to do to improve the lives of residents within our local communities, helping our Partners deliver against their corporate priorities.
c.£1bn is spent by the STAR Partners per annum
If only 1% of that is delivered back to local communities through social, economic, or environmental support, that's still a lot of additional benefit positively impacting those communities
STAR and our Partners recognise that as financial pressures continue to rise in the public sector and demand for services continues to grow, it is now more important than ever that we think differently when we spend public money. Therefore we need to continually ask:
- What is important to the local community?
- How can we deliver services differently in a way that will impact positively on the local community and the environment?
- How can we support local businesses?
- How can we work better together to engage those people who are hard to reach?
- What are the current local challenges faced that could be better resolved by working together with our communities?
Since 2014, we and our Partners have been working collaboratively across Greater Manchester to place an emphasis on giving consideration to Social Value in contracts to which the Public Contracts Regulations 2015 do not apply. This is in recognition of the advantages social value can bring to local communities, and wishing to ensure that maximum value is brought to our local communities. The Greater Manchester Social Value Framework 2020 feeds into how we approach Social Value at STAR.
In addition, the Public Services (Social Value) Act 2012 requires public bodies operating solely in England to give due consideration to the inclusion of Social Value when commissioning goods, services, and works to which the Public Contracts Regulations 2015 apply. The Act does not alter the procurement process, however, it ensures that the public sector gives due consideration to the wider impact (social, economic, and environmental) of the requirements to be delivered.