Government vows to tackle barriers to use of social value legislation

The Cabinet Office has vowed to tackle barriers to using the Public Services (Social Value) Act 2012 in a review of the legislation’s impact one year on after its introduction.

The proposals include using its Mystery Shopper service to investigate cases where providers believe commissioners have not followed the Act.

In 2014 the Government will also carry out proactive spot checks of individual procurement exercises to check that the legislation has been applied.

The 2012 Act requires public sector agencies to consider, when commissioning a public service, how the service they are procuring could bring added economic, environmental and social benefits. Commissioners must also consider whether they should consult on the issues.

The Cabinet Office review insisted that in the wake of the Act, which came into force on 31 January, commissioners were “increasingly thinking innovatively about social value, and the shift is organic and locally-led, supported by a range of non-governmental activity, rather than one prescribed by Whitehall”.

The review identified a number of contracts where the legislation had been used. Examples included: a housing repairs contract; an energy efficiency contract; a river management contract; a troubled families contract; a banking services contract; and a school milk delivery contract.

However, the Cabinet Office acknowledged that there was further to go. It said it had heard from commissioners and providers that:

  1. Some commissioners were “yet to be inspired as to the potential of embedding social value in the work that they do”;
  2. Some commissioners were “held back by uncertainty as to what they can and cannot do under the law”;
  3. There was a lot of material and activity to help commissioners understand how to embed social value in their commissioning processes, but some saw this support as fragmented and difficult to access; and
  4. Some providers who could bring added social value to the table found it difficult to demonstrate that added value to commissioners.

The Cabinet Office said it would seek to tackle these barriers, albeit with the guiding principle that the shift in thinking on social value needed to continue to be led by commissioners and providers themselves.

The report said the Government would provide “a broad offer of support” to commissioners:

  • Through a focus on social value in the Commissioning Academy, which was set up to bring together commissioners from different parts of the public sector to learn from the most successful organisations. The aim is for there to be 1,500 participants in the programme by 2015/16.
  • Through support on social value via the Public Service Transformation Network.
  • By sharing examples of innovative commissioning and bringing together support available to commissioners into one easily accessible online location.

Support will also be given to providers that want to offer added social value, including through the use of the Mystery Shopper service and spot checks.

The Cabinet Office is also to extend its programme of commercial masterclasses and continue its Inspiring Impact programme for voluntary, community and social enterprises.

A copy of the review can be viewed here. Another report will be published in a year’s time.