What does it include?• Social value considers more than just the financial transaction. It includes: – Happiness wellbeing health inclusion empowerment local employment green space volunteering and more…• These types of value often accrue to different people, communities or organisations and are not always easy to measure. – This doesnt mean they shouldnt be valued.
Who provides social value?• No one sector / organisation has a monopoly on social value• However not all sectors are driven by social value
Social Value Act – Lords Debate "The opportunity that the Bill gives to us is togive as much credence to social value as to cost..If we do not do this, then we end up knowing the cost of everything and the value of nothing." Baroness Stedman-Scott.
What is the Act?Public Services (Social Value) Act 2012• Private members bill initiated by Chris White MP• Received broad cross party support• Became law on the 8th March 2012• Applies to public service contracts• Waiting on govt. implementation – relevant statutory instrument expected by end of 2012
How does it sit with other law?Public Services (Social Value) Act 2012• Compliments existing UK & EU law• Builds on treasury guidance, Best Value guidance, EU guidance, equalities law• Builds on previous policy directions & guidance – Social clauses, intelligent commissioning, world class commissioning, EU Buying Social & Buying Green, NAO Successful Commissioning
What does the Act say?Public Services (Social Value) Act 2012 “The authority must consider— (a)how what is proposed to be procured might improve the economic, social and environmental well-being of the relevant area, and (b)how, in conducting the process of procurement, it might act with a view to securing that improvement.”
What does the Act say?Public Services (Social Value) Act 2012 “The authority must consider whether to undertake any consultation as to the matters that fall to be considered under subsection 3” – Exemption for urgent procurements – Does not overrule procurement legislation
What does it mean?• All contracting authorities will have to consider the relevance of social, economic and environmental requirements when a contract for services is commissioned• It opens door for consultation & engagement with sector• Potential to improve local services?
What will be the impact? "The Bill constitutes a good idea that has beengiven a few teeth. Whether those teeth are sharp enough, or the jaw that contains them is strong enough, we do not yet know. However, the Bill is a good start. We should see it as part of an ongoing process as opposed to an end in itself." Lord Addington.
An opportunity?“The Act is not prescriptive, butempowering. It relies on civil societyorganisations to take the initiative anduse the potential of the Act to change theway we commission services” Chris White MP in NAVCA’s Circulation magazine
An opportunity?“I hope all public bodies will see this as aduty to consult and civil societyorganisations should lobby hard toensure that public bodies use theexpertise and knowledge of the thirdsector when putting the Bill into action.” Chris White MP in NAVCA’s Circulation magazine
What approach?1. Recognising social value above the specification – Looking at & valuing the additional benefits2. Redesigning specifications to get more social value into them
Many ways to inject & appreciate social value through a commissioning processFor example.. – Consulting service users & community – Understanding needs & wellbeing – Rethinking outcomes & redesigning specification – Using the right process – Contract clauses – Scoring criteria – Contract management
Examples• Transport contract tendered with scores for ‘added value’• Advice services - scores awarded for ‘response exceeding expectations’• Mental health service that employs people with a history of mental health problems to deliver the service
Examples• Redesigning advice service through customer experience• Further Education college adding creation of certain number of apprenticeships to specification• Reading service for children staffed by volunteers
Challenges• Only 18% of commissioners regularly engage with potential providers to design a tender• Criteria for awarding contracts – TOP: Cost – BOTTOM: Community engagement potential Future Service Partnerships, LGiU, http://bit.ly/OwoE6M
Barriers to tendering with the third sector Embedding Social Value through Sustainable Procurement
The voluntary sector challenge:1. Putting policy into practice2. Early days3. Knowing what is possible4. Looking for examples5. Engaging with the right people6. Understanding & communicating impact
Find out locally1. What are the local priorities?2. Is there clear political leadership3. What counts as having met the Act’s requirements?