background image
02
www.unity.co.uk
The Social Value Act was introduced on 31 January 2013
and requires people in England and Wales who commission,
or buy, public services to consider securing added economic,
social or environmental benefits for their local area.
It has
been criticised for not proving to be robust enough.
SECTOR
UPDATE
CONCLUDES LORD YOUNG
The Social Value Act is not going to
be extended until key issues around
"awareness, understanding and
measurement" are resolved, concludes
the review led by the Prime Minister's
enterprise advisor Lord Young of Graffham.
The Social Value Act review found that
where the Act has been taken up in the
past two years, it has encouraged "a
more holistic approach to commissioning"
­ but that the number of actual
procurements incorporating social value
have been low, relative to the number and
value of procurements across the whole
public sector.
In the report, Lord Young wrote:
"I can see the many positive benefits
being delivered by the Act where it is
operating well, but I believe that these
issues of awareness, understanding and
measurement should be overcome before
an extension of the Act is considered."
CEO of Social Enterprise UK (SEUK)
Peter Holbrook said his organisation was
"disappointed that there is no statutory
guidance underpinning the Act and
seemingly little support to extend the
Act to goods and works".
At the Social Value Summit held by
SEUK in London in February 2015,
crossbench peer Lord Victor Adebowale said
that the Act "needs to develop and deliver
the teeth necessary for it to drive the way
in which we deliver services to the public".
Holbrook said that despite
disappointment over Lord Young's
apparent lack of enthusiasm, "there
remain positive indicators for the country's
growing number of social enterprises
in the recommendations".
The recommendations to raise awareness
of the Act include for the Cabinet Office to
set up a `Social Value Steering Group' with
NHS England and Public Health England
Sustainable Development Unit to ensure
social value is more embedded in strategic
health commissioning.
Other key recommendations include
those to strengthen the framework for
measuring and evaluating social value.
A Measurement Working Group made
up of commissioners, social enterprises,
charities and relevant government officials
and agencies will develop systems to
assess the social benefits of the services
contracted by commissioners.
The review recommends that Inspiring
Impact, a 10-year collaborative programme
managed by charity think tank and consultancy
NPC, should lead the Working Group.
Head of development at NPC Tris Lumley
said: "In our manifesto we urged government
to bring experts together on the question
of social value, and make sure that we
had an agreed understanding of what the
Social Value Act was aiming to achieve.
"The Inspiring Impact programme
Want to learn more about the Social Value Act? Read the Quick
Guide to the Social Value Act at:
www.pioneerspost.com/publications
already enjoys the support of officials
and partners in the charity sector, so I
look forward to constructive relationships
on this exciting new work as well."
With the general election in May
and a predicted congested parliamentary
timetable in the new government's first
18 months in power, the review group ­
which included Hazel Blears MP, Chris
White MP, North East regional chairman
of the Federation of Small Businesses Ted
Salmon and CEO of Mentor UK Michael
O'Toole ­ have ruled out any further
immediate consideration about extending
the Act.
However, they have recommended
that a further review be undertaken within
the next two years, "to evaluate how
much progress has been made against
each recommendation, and what more
should be done".
procurements incorporating social value
have been low, relative to the number and value
of procurements across the whole public sector
``
SOCIAL VALUE ACT
WILL NOT
BE EXTENDED
Ellie Ward writing for
www.pioneerspost.com
reports on how
the sector has reacted to the findings of Lord Young's report.