Public Services (Social Value) Act

Four things...

1. What is social value?

2. Background to the Public Services

(Social Value) Act

3. What the Act covers

4. Implications for Housing Associations

What is social value?

• Social value has been loosely defined as:

“the additional benefit to the community from a commissioning/procurement process over and above the direct purchasing of goods, services and outcomes”

Background to the Act • The social enterprise sector has long called for

social value to be factored into commissioning to:– support local job creation– improve access to market entry for civil

society organisations– minimise the impact of the spending cuts on

civil society organisations

• Social Enterprise UK included this recommendation in our 2010 General Election manifesto

Background to the Act (cont.)

• In July 2010, Chris White MP tabled the Public Services (Social Enterprise and Social Value) Bill

• He felt the Bill:– tied in to the Big Society vision– would help create a mixed market of providers

and encourage market entry for civil society organisations

– could give rise to cross-departmental efficiencies

What the Act covers

• Public bodies will be required to how they might improve the economic, social and environmental well-being of the area at the pre-procurement stage of public service commissioning.

 • The Act applies to :

– all public service contracts (and public services contracts with only an element of goods or works) over the EU threshold in value

= £113,057 for central govt; £173,394 for other public bodies

• All English and some Welsh bodies will have to comply with the new law, including local authorities, government departments, NHS Trusts, PCTs, fire and rescue services, and housing associations.

What the Act covers cont.

• Guidance from Cabinet Office says will be ‘good practice’ to do the same with lower value contracts

• Becomes law January 31st 2013

Implications for HAs• Embed into commissioning + procurement practice

• Adopt a social value policy

• Learn from others / build on current practice

• Engaging with the local market

• Other public sector partners

• Measuring social value

The Social Value Conference

Wednesday 6th MarchBlackburne House, Liverpool

Social Enterprise / Housing conference & exhibition

Tuesday 23rd AprilInmarsat Centre, London

www.socialenterprise.org.uk/events

www.socialenterprise.org.uk/advice-support/resources/the-social-value-guide

Any questions?

nick.temple@socialenterprise.org.uk

www.socialenterprise.org.uk