National Procurement Policy Statement (NPPS)

The National Procurement Policy Statement (NPPS), released alongside the Act in February 2025, serves as a strategic guide for contracting authorities, reinforcing Social Value as a core priority in public procurement. Although the NPPS is separate from the Procurement Act 2023 (the Act), authorities are legally required to “have regard” to it under Section 13 of the Act. 

The NPPS makes Social Value a clear priority and reinforcing its role in government procurement strategy in a few ways:

Mission-driven procurement

The NPPS directly aligns with the Government’s missions, stating that “contracting authorities should deliver social and economic value that supports the Government’s missions.” This formalises the expectation that procurement decisions actively contribute to long-term national priorities related to Social Value.

A place-based approach

Social Value has always been about meeting the unique needs of local communities. The NPPS reinforces this by stressing the importance of “taking into account priorities in local and regional economic growth plans.” This means authorities must procure in a way that supports the specific economic and social needs of the communities they serve, rather than applying a one-size-fits-all approach.

Contract management and delivery

Like the Procurement Act 2023, the NPPS emphasises not just awarding contracts based on Social Value commitments, but ensuring they are actually delivered. It explicitly states that authorities should:

• Benchmark their procurement capability to ensure they have the skills and capacity to manage contracts effectively
• Prioritise long-term value for money, which includes Social Value delivery

SMEs & VCSEs opportunities

A top priority of the Procurement Act 2023 is making public contracts more accessible to small-medium enterprises (SMEs) and Voluntary, Community, and Social Enterprises (VCSEs). The NPPS mandates contracting authorities to set spend set spend targets for SMEs and VCSEs.