Is measuring social value the key to better public sector commissioning?
You will know that I am a great fan of social value. We have a fantastic toolkit that works it all out for projects. If you email me you can have a copy of it. This article tells us:
The Social Value Act came into force two years ago. The legislation was heralded as transformative because it required public bodies to take into account social and environmental benefits when awarding contracts, rather than focusing solely on cost.
Yet, evidence suggests that not much has actually changed: of approximately 480 English councils surveyed by the Social Value Portal, only 15% said they were applying the act.
Why hasn’t the act been taken up more widely, especially at a time when it would generate much-needed income for community-based organisations employing disadvantaged people? A government review, published last week, highlighted three main barriers: little awareness of the act, varying understanding of how to apply it within government procurement, and the lack of agreed standards for measuring social value.
Paradoxically, the focus on measurement has got in the way of using the act to innovate in public services and unleash its transformative potential. Lord Young, who led the review, reflects that: “Social value has real potential to act as a value for money tool for commissioners tackling severe cost pressures, but better measurement is essential to help the act to take this form”.