In an era of constrained budgets and growing challenges, from ongoing economic uncertainty and lasting effects of Covid-19 to cost of living pressures, public sector organisations must do more than ever
It is no longer enough to be the best deal; it’s also about delivering real, measurable impact. Under the Procurement Act, there is a legal obligation to not only deliver value for money but also measurable social, environmental and economic outcomes.
The proportion of young people aged 16-24 not in education, employment or training (NEET) is at its highest level since 2014 – a reminder of the continued need to support projects and enterprises that help address these inequalities. In this context, public procurement holds untapped potential as a catalyst for change.
As a not-for-profit framework provider working across England, Scotland and Wales, LHC Procurement Group (LHCPG) is uniquely placed to help clients respond to local needs and deliver against wider strategic goals.
Our first annual Social Impact Report details our efforts, revealing how public sector procurement can act as a powerful driver of community transformation, delivering greener homes, inclusive growth, social mobility and better lives.
It outlines a new level of openness and insight, showcasing exactly how our frameworks, partnerships, supply chain and reinvestment strategy are maximising value beyond cost and compliance, creating meaningful impact across communities.
Raising the bar on social value
Our Social Value Strategy, launched in March 2024 with social value charity HACT, underpins every aspect of our work – from framework design and supplier selection to project delivery and community investment.
The goal is to embed social value at every stage of procurement and to ensure it is both measurable and meaningful.
For public sector clients, this provides guidance in setting local priorities, access to suppliers supported to deliver achievable social value, and clear measurable outcomes aligned with community needs and national policy goals.
A framework for fairer outcomes
This new approach is already being delivered via our sector leading Retrofit & Decarbonisation (N9) framework, designed to accelerate progress towards net zero.
We’ve appointed 126 contractors and consultants, of which 88 are SMEs and 30 are micro-businesses – demonstrating a commitment to inclusive economic growth, supporting not only social mobility but greener jobs and homes in communities that need them most.
Social value aims of N9 include outcomes such as lower energy bills, improved indoor air quality, enhanced comfort and health, and tackling regional skills gaps. These benefits are felt directly by residents and communities, particularly in areas experiencing fuel poverty and housing disrepair.
Alongside this, our Energy Efficiency & Renewable Technology DPS gives clients flexible access to specialist services for the inspection, repair and installation of low-carbon technologies, supporting long-term value.
These are the kinds of holistic, future-ready solutions public sector clients are under pressure to deliver – especially in housing, education and community infrastructure.
Investing surpluses locally
We don’t just deliver social value through projects; we also reinvest our surpluses directly into communities. In 2024-25, £314,816 was allocated through our community Benefit Fund, supporting charities and community initiatives across our five regional hubs.
Projects funded this year created upwards of £936,000 in social value, according to HACT’s Social Value Bank metrics.
One standout project is YMCA Tayside’s Y Enterprise programme, supported by Scottish Procurement Alliance (SPA) in Scotland.
Targeted at 14-year-olds disengaging from mainstream education, the pilot offered entrepreneurial training and mentoring, helping young people build confidence, skills and aspirations. The £10,000 grant enabled the project to reach a crucial intervention point in young people’s lives, reducing the risk of long-term exclusion and unemployment.
Another example of our place-based social impact comes from the Welsh Procurement Alliance (WPA), which is supporting the Youth Engagement & Progression Framework – a national initiative in collaboration with the Welsh government. This work is directly aligned with Wales’ national target of ensuring that 90% of young people aged 16 to 24 are in education, employment or training by 2050.
Delivering community impact through the supply chain
We are also reshaping how suppliers engage with local communities. Through early stage engagement, clear expectations on social value delivery and ongoing support, LHCPG’s appointed suppliers are encouraged to align with community goals. Regional relevance is a key pillar of this approach.
In Scotland, for instance, SPA works closely with the Supplier Development Programme to help local businesses – especially SMEs without dedicated bid teams – break into public sector procurement. Over 900 suppliers attended training events co-hosted by SPA in 2024-25, generating over £1.1m in economic impact.
In the North of England, the Northern Procurement Alliance (NPA) partners with Preston Vocational Centre to support construction careers for young people and adult learners.
Social value as standard, not add-on
For public sector organisations, working with framework providers like LHCPG offers a route to maximise the wider impact of capital and maintenance projects.
Whether it’s through inclusive supply chains, greener procurement practices or reinvestment in local communities, our approach demonstrates that social value doesn’t need to be an add-on. It can be the foundation.
As clients grapple with shrinking budgets, net zero targets and rising demand for services, the need for procurement that delivers more for people and places has never been greater.
Visit our website to download your copy of the 2025 Social Impact Report and discover how procurement with purpose is delivering real results for people and places across the UK.
*Please note that this is a commercial profile.
