Think tank calls for standard approach to social value

A standardised approach to evaluating social value could help improve the lives of residents and the way in which council services are commissioned, according to a new report.

The report by think tank Localis – Brighten All Corners – maximising social value in place – calls on councils to adopt community value charters, as a way of measuring the success of commissioned services, with particular reference to the Social Value Act.

The legislation first came into force in January 2013 and calls on all public sector organisations to factor in economic, social and environmental well-being when awarding contracts.

But since it became law, there have been questions raised about how effective it is and whether or not it should be strengthened.

The Localis report recommends the government revise the Social Value Act with a local element requiring councils to produce community value charters to define specific goals and priorities for residents.

It adds that all charters be publicly available and define where social value offers would be best targeted as an aid to both commissioners and contractors placing bids.

The document also recommends the government define a list of approved social value metrics for quantifying the social value element of a tender.

‘During the Covid-19 pandemic everyone in society is having to drastically reorient how they go about their everyday business or deliver public services,’ said Localis chief executive, Jonathan Werran. 

‘In this spirit, our report calls for a greater sense of human values, trust and relationship in how we generate value for our communities from the commissioning process.

‘Providers must be accountable to residents, tenants and local people for both the services they deliver and the benefits agreed to when business contracts are signed,’ added Mr Werran. 

‘And these must be explained in a clear way – not through complex targets and opaque mechanisms.

‘As we start to move in the coming months from lockdown to economic recovery, a depleted private sector will, as is always the case during economic recessions, naturally drive more intense competition when bidding for government contracts.’

The executive director of Mears Group, Alan Long added: ‘If we can’t get social value right for our communities now then we never will. It has been said that the Covid pandemic could further highlight the divide in our communities. The housing sector, alongside local and national commissioners, have a golden opportunity to use the resources of the private sector for the public good.

‘I commend this report for providing a clear platform for demonstrating social value to communities and will be speaking to colleagues in central government about how we can take these recommendations forward immediately.’

The full report – Brighten all Corners – is available to read here.

Photo Credit – Free-Photos (Pixabay)