Social value and its benefits
Social value is a Public Service Act that came into force on 31 January 2013 and it refers to additional benefits generated by the Authorities activities that go beyond financial value.
Its aim is the wider benefit gained by a local community from the delivery of public contracts or services.
Some of the benefits of such an approach include:
- addressing inequalities
- supporting the local economy
- measures to address the climate emergency
- promoting fair employment practices
- investing to strengthen the local community impact
Purpose of our Social Value Toolkit
The purpose of this Social Value Toolkit is to outline the commitment of the unitary council to promote and prioritise social value in all its activities and procurement processes. The council recognises the importance of delivering positive social, economic, and environmental outcomes for the community it serves.
Our commitment
We have a commitment to ensure that social value is embedded into our core values and culture of the organisation, with a central aim of improving the health and wellbeing of our residents, supported by a focus in four key areas.
1. Promote community well-being and prioritise addressing inequalities. The council will actively seek opportunities to enhance the social fabric and well-being of the local community through its policies, programmes, and services.
2. Nurture economic resilience and inclusivity, cultivating local economies that work for local people. We will prioritise the creation of fair economic opportunities, job growth, and support for local businesses, including social enterprises and disadvantaged groups.
3. Address environmental resilience and the climate emergency. We will strive to minimise the environmental impact of its operations, promote sustainability, and encourage eco-friendly practices within the community.
4. Collaboration and engagement to deliver excellent public services, we can make an impact on the factors that improve health and wellbeing. We will actively collaborate with stakeholders, including residents, community groups, businesses, and other relevant organisations, to ensure a holistic and inclusive approach to social value creation.
We can secure better outcomes and possibilities for their local communities, by ensuring social value is included in the contracts it awards, where it is relative and proportionate, resulting in more effective approaches to achieving the council's strategic objectives and tackling our most difficult challenges.
It is more important than ever to maximise the additional value from public funds; and to understand that, by using social value as a tool, we can really stretch the ‘Cumberland pound,’ and extract considerable social, economic and environmental value from our contracts. Social value encourages our commissioners/strategic Leads to consult with the local provider market, our communities and indeed, our service users. We can identify and capture activity that is of marginal or no cost to a supplier/provider, which provides a high strategic importance to us.
This Social Value Toolkit will help us achieve more of its strategic aims with the same, or even less money. It recognises the role that staff, suppliers, stakeholders, and residents can play in achieving better and greater outcomes; from increasing the level of apprenticeships, employment and training, or greater support to vulnerable residents, to spending money within the local economy in Cumberland.
Social value provides the policy context to take advantage of new and creative opportunities to work with others, and to extract the maximum value of our aims, as set out in the council plan.
Read more about the council plan
Our key focus
Through design, inclusion, and application of suitable social value statements/clauses within our commissioning, procurement and contract activities, our ambition seeks to achieve and encourage as follows (but by no means an exhaustive list):
Social
Includes activities such as:
- volunteering in the community
- hosting community events at your business
- flexible working policies for staff
Economic
Includes activities such as:
- hosting work placements, creating apprenticeships, creating jobs
- employing local people and spending with local suppliers
- mentoring and providing career advice to young people
- offering a Premier Supply Service
Environmental
Includes activities such as:
- reducing energy, water use and carbon emissions
- supporting improvements to public spaces and parks
- using sustainable products and materials
Excellent public service
Includes activities such as:
- provide relevant, timely and useful information
- provide signposting and accessibility to opportunities
As referenced earlier, by ensuring social value is included in contracts awarded, we will secure better outcomes and possibilities for their local communities. Furthermore, it can be a specific requirement within a contract specification (part of the core requirement), or can be something proposed and delivered by a supplier in addition to the core requirements of a contract. (In turn, we need to be clear about what we see as contractual obligations, as opposed to aspirations).
Management and governance of social value
The overall management and governance of social value will sit with the Commissioning, Procurement and Contracts team. However, for social value to be most effective, the principles must be a business collaborating approach, with all relevant directorates. We must all own Social Value.
How social value is communicated and implemented
The Procurement and Commissioning team will act as corporate champion and adviser, both internally and externally. However, at directorate level, all relevant managers and officers are responsible for, and will oversee, the development and implementation of social value from the outset, within their own areas of responsibility.
As a council, we will be giving social value due ‘consideration’ within the commissioning, procurement and contract management phases, and we expect officers to apply a weighted criterion up to 20% in most of our tenders and request for quotes, ‘where appropriate and proportionate’ to do so.
Implementation
For procurement, we will integrate social value considerations into its procurement processes, as previously noted. This may include evaluating suppliers based on their commitment to social value, supporting local suppliers, and encouraging the use of sustainable and ethical practices.
For service delivery, we will assess and monitor the social value generated by its services, aiming to maximise positive outcomes for the community.
For partnerships, we will seek partnerships with organisations that share its commitment to social value, leveraging collective efforts to achieve greater impact.
For reporting and evaluation, we will regularly report on its social value initiatives, measure their effectiveness, and seek continuous improvement.
Monitoring and performance management of social value in Cumberland
Measuring the success of implementing social value and achieving Social Benefits is determined by the processes and monitoring mechanisms that are put in place.
Monitoring of social value will identify and measure agreed KPI’s which will be undertaken on a contract-by-contract basis, by commissioning and procurement managers/officers as part of service/performance review meetings.
As referenced earlier, our supply chain will be required to make contractual commitments on social value statements they make, having been assessed in the initial evaluation of tender responses.
Furthermore, we will request progress updates on delivered social value commitments at contract review meetings, and evidence of social value delivery will be provided by suppliers and will be reviewed to ensure benefits are realised.
Community engagement
We will actively engage with the community to understand their needs and aspirations, seeking their input and involvement in decision-making processes. This will ensure that social value initiatives are aligned with the community's priorities and that there is transparency and accountability in their implementation.
Performance management
Social Value commitments (obligations and/or aspirations) made by suppliers will be discussed and reported on as part of contract review meetings throughout the delivery of the contract.
Real living wage
The real living wage is a voluntary rate paid by employers who choose to go above and beyond the government minimum to ensure their staff are always paid a wage that covers the cost of living.
Paying a real living wage improves the employer brand, boosts staff productivity and motivation at work. We also know paying a real living wage helps employers to remain competitive, retain existing staff and attract new staff.
We encourage suppliers to pay the real living wage through its contracts.
Modern slavery
We define modern slavery as when an individual is exploited by others, for personal or commercial gain. Whether tricked, coerced, or forced, they lose their freedom. Modern slavery exists in many forms in the UK, including trafficking into criminal activities like cannabis farming, sexual exploitation, domestic slavery or forced labour on farms, in construction, shops, bars, nail bars, car washes or manufacturing.
Since 1 October 2015, commercial organisations that carry on a business or part of business in the UK, supply goods or services and have an annual turnover of £36 million or more ("relevant commercial organisations") have been required under Section 54 of the Act to prepare a slavery and human trafficking statement as defined by section 54 of the Act. Contracts with Cumberland Council will not tolerate modern slavery in any form.
Review and improvement
This Social Value Toolkit will be reviewed periodically to ensure its continued relevance and effectiveness. The council will seek feedback from stakeholders and make necessary adjustments to enhance its social value approach.
By adopting this Social Value Toolkit, we are demonstrating our commitment to creating a positive and sustainable impact on the community it serves, fostering social cohesion, economic resilience, and environmental stewardship.