Social value is the quantification of the relative importance that people place on the changes they experience in their lives. Some, but not all this value is captured in market prices. It is important to consider and measure this social value from the perspective of those affected by an organisation’s work.
Examples of social value might be the value we experience from increasing our confidence, or from living next to a community park. These things are important to us, but are not commonly expressed or measured in the same way that financial value is.
Social value is the description of how a project creates value and a ratio that states how much social value in monetary terms is created for every £1 of funding:
‘If £1 is spent on the delivery of services, can that same £1 be used to also produce wider benefit to the community?’ Public services (Social Value Act) 2012