Michael McLaughlin, group social value manager at LHC Procurement Group (LHCPG), examines the new Procurement Act and creating meaningful social impact
Interest in social value has grown among the public, charitable and commercial sectors over the past two decades for a few reasons – legislation being one of them.
The Social Value Act 2012 states that all public bodies must consider how what they are proposing will improve economic, social and environmental wellbeing.
The arrival of the new Procurement Act this year introduces a legal requirement for public sector buyers to shift from awarding contracts based on MEAT (Most Economically Advantageous Tender) to MAT (Most Advantageous Tender).
Procurement can be criticised for being too “goods and services” focused but this new legislation marks a pivotal moment to advance social value and embed it firmly within procurement practices.
Strategic procurement in social housing
The chancellor’s Budget elevated social housing as a core component of the UK’s built environment. Yet, it is still too often perceived as a cost burden rather than a societal asset.
To help shift this narrative, social value objectives must be directly woven into frameworks, ensuring that procurement not only delivers housing but also enhances the lives of those it serves.
Creating meaningful social impact
However, creating impactful social value requires moving beyond a numbers game. This echoes the findings in HACT’s Make it Impactful: The Future of Social Value and Assurance white paper, which highlights the risk of treating social value as a public relations exercise.
For true impact, it must instead be treated as business-critical information, requiring robust governance, clear metrics and evidence-based approaches to ensure outcomes align with community needs and expectations.
Building credibility through assurance
A key challenge in social value delivery lies in ensuring that outcomes are credible, transparent and measurable. Social value metrics often lack the rigorous scrutiny applied to financial reporting, leading to scepticism about their reliability.
HACT’s whitepaper underscores the importance of addressing this credibility gap, particularly in high value contracts.
LHCPG has long championed procurement solutions that extend beyond cost savings, leveraging frameworks to improve social, environmental, and economic wellbeing.
We actively work to embed robust assurance practices into our frameworks. For instance, we establish transparent processes for measuring and reporting social value, providing clarity to both partners and suppliers.
This commitment aligns with HACT’s recommendation to adopt “golden loop” principles, where insights from one initiative inform future strategies.
More than just free-to-use frameworks
Our regionalised frameworks align with our social value strategy 2024–2027, which emphasises flexibility to meet a place-based approach focusing on the unique needs of communities across England, Scotland and Wales.
We maximise social value by fostering stronger community outcomes, reducing inequalities and increasing opportunities for local economies.
One way in which we do this is by collaborating wherever possible with small and medium sized enterprises (SMEs) to enable local economic resilience. By supporting smaller suppliers in navigating social value procurement processes, we ensure their contributions are both impactful and achievable.
Working closely with local authorities, we identify how procurement strategies can reduce food and energy poverty, enhance social mobility and generate employment for locally qualified skilled workers.
Social value is central to every framework we develop – including the latest Retrofit & Decarbonisation (N9) and Roofing Systems (RS5) ones, which are designed to deliver long-term environmental and social benefits.
Empowering communities
Being not-for-profit, we also amplify social value by reinvesting in community projects and initiatives.
For example, our Community Benefit Funds – shaped by regional committees – target areas of greatest need to deliver real transformative change and lasting social value legacies.
Moreover, we actively engage employees in delivering social value. Our strategy includes dedicated volunteering days and training to empower staff to contribute to community focused initiatives. This approach strengthens the connection between our organisational values and the communities we serve.
A vision for leadership in delivering social value in procurement
As we move forward, LHCPG’s vision is to lead the sector in socially conscious frameworks that set a benchmark for public procurement.
I was hired in 2024 as LHCPG’s first dedicated social value manager and am working closely with the director of communities and technical procurement team to ensure that our commitment to transparency, collaboration and measurable outcomes remains unwavering.
Together we can showcase how procurement can be a powerful driver of positive change.
Through our frameworks and partnerships, we aim to maximise every opportunity to build thriving, resilient communities across the UK – proving that procurement is about far more than buying; it’s about shaping a better future.
*Please note that this is a commercial profile.
