The new Procurement Act: a quick overview
The new (or more accurately, updated) Procurement Act, introduced in February 2025, is designed to streamline and modernise public sector purchasing across the UK, placing a stronger emphasis on transparency, accountability, and social value. Building on existing rules, it consolidates and updates older regulations to encourage a broader range of potential suppliers, including Voluntary, Community, and Social Enterprise (VCSE) organisations, to compete for public contracts. By elevating social and environmental considerations, the Act represents a wider move towards more inclusive and responsible procurement processes.
In line with broader public procurement reforms, the Act also aims to make these processes simpler and fairer, especially for smaller organisations. Public bodies are encouraged to look beyond cost, focusing on long-term benefits, resilience, and tangible community impact. This new approach is particularly significant for VCSEs because social value is no longer just a “nice-to-have”; it sits at the heart of how public contracts are awarded.
Why this matters for VCSEs
If you’re part of the VCSE sector, you’ve probably been championing social and community well-being for a long time. Now, funders and commissioners will pay even closer attention to what you’re already great at: creating a positive difference on the ground.
Opportunities will likely expand for VCSEs, but you’ll also see more competition from other types of suppliers that can demonstrate social value. Additionally, the new Act requires a higher level of evidence and ongoing reporting to show how you’re meeting your social value commitments throughout the contract life cycle. In other words, there’s never been a better time to sharpen your impact measurement tools.
Tapping into Government guidance
For a deeper dive into the government’s thinking, have a look at their Transforming Public Procurement collection. It offers a clear picture of what the UK aims to achieve with these reforms: streamlined processes, better accountability, and a focus on delivering value in the widest sense.
By getting familiar with these materials, you’ll see how your VCSE’s mission aligns with national goals and learn the best ways to present your achievements in a way that resonates with procurement teams.
How the Social Value Engine supports VCSEs
The Social Value Engine is designed to help organisations quantify, measure, and communicate the positive outcomes they create for people and communities. Grounded in recognised metrics and proxies, it assigns clear, transparent values to improvements in areas such as mental health, community cohesion, and environmental well-being. With a user-friendly platform that guides you through setting up outcomes, inputting data, and generating concise reports, the Social Value Engine offers several key benefits:
Clearer evidence for stronger bids
Saying you generate positive community impact is one thing, but being able to prove it makes all the difference. By turning real-world outcomes into data-backed insights, the Social Value Engine shows commissioning teams exactly how your work contributes to social value.Ongoing compliance made simple
Under the new Procurement Act, social value delivery is monitored throughout the life of a contract. Regular tracking and updates in the Social Value Engine ensure you can stay on top of these requirements at every stage.Building trust and credibility
Commissioners and funders expect transparency and accountability. Presenting your social impact through clear, consistent reporting helps foster confidence in your organisation, strengthening relationships and opening the door to new opportunities.Informed decision-making
Measuring impact isn’t just for external audiences. By seeing which activities deliver the greatest social returns, you can refine your services, optimise resources, and ensure your core mission remains at the forefront.
Simple steps to get started
- Review the requirements: Familiarise yourself with the key features of the Procurement Act and the main goals of the Transforming Public Procurement programme.
- Map out your outcomes: Speak with your stakeholders to define what your organisation delivers—whether it’s community cohesion, environmental sustainability, or better well-being—and list the outcomes you most want to highlight.
- Use the Social Value Engine: Explore how its features can fit your projects. If you need support, there are helpful guides and training sessions available.
- Incorporate evidence in your bids: Use the Engine’s reports to showcase your strengths, making sure they align with the priorities set out in procurement documents.
- Keep evolving: Social value measurement is never a one-and-done exercise. Keep tracking, keep refining, and keep showing commissioners how you’re adapting to deliver the best outcomes.
The bottom line
The new Procurement Act ushers in a more transparent, impact-focused way of working. For VCSE organisations, it’s a golden opportunity to highlight the meaningful change you bring to people’s lives, provided you can show clear evidence of that impact.
By using the Social Value Engine, you’ll not only strengthen your bids but also build a track record of accountability and excellence. To learn more about preparing for the new Procurement Act, visit Socitm’s resource hub, and explore the government’s Transforming Public Procurement materials for additional insights.
Keen to learn more about the Social Value Engine? Get in touch with our team to explore your options.
