The UK government is set to overhaul its approach to awarding public sector contracts by removing the requirement for companies to demonstrate environmental and broader social value contributions. Instead, contracting authorities will place greater emphasis on bidders’ commitments to supporting young people’s employment and skills development.

Under the new framework, which forms part of a broader initiative to reduce the number of young people not in education, employment, or training (NEETs) and to stimulate regional economic growth, public sector buyers will double the weighting given to social value considerations in contract evaluations—from 10% to 20%. However, the focus will shift from general social and environmental benefits toward companies’ ability to create local jobs that pay above the minimum wage, provide training or work experience, and address local skills shortages.

The government’s £90 billion annual procurement budget will now prioritise contracts that offer tangible employment outcomes for young people, care leavers, and individuals with long-term health conditions. Contracts valued under £1 million will be exempt from these requirements, a move intended to improve access for smaller enterprises that have previously struggled to compete under complex social value criteria.

Louise Haigh, First Secretary of State, defended the changes by arguing that existing social value policies have often become “tick-box exercises” that fail to deliver meaningful benefits to communities. She stated that taxpayer money should directly support job creation and skills development within local areas, ensuring public funds lead to visible economic improvements.

The revisions have drawn criticism from environmental groups, who caution that decoupling environmental objectives from procurement decisions risks undermining efforts to tackle climate change and biodiversity loss. Ami McCarthy, head of politics at Greenpeace UK, emphasised that supporting environmental protection and youth employment need not be mutually exclusive goals. Similarly, Rosie Downes of Friends of the Earth warned that the country is already facing grave environmental challenges, including rising heat-related mortality and ecosystem degradation, which require continued attention within government contracting processes.

Concerns have also been voiced by some within the Labour Party and campaign groups focused on equality and anti-trafficking efforts. A Labour source acknowledged that while the social value requirements were burdensome and amounted to red tape, removing certain indicators could elicit criticism. They stressed that the government’s intent is to channel funds toward businesses investing directly in local young populations and delivering measurable outcomes, rather than pursuing compliance with broad social goals that may lack practical impact.

The new procurement guidelines aim to ensure that suppliers demonstrate a clear commitment to fostering British jobs and skills development, particularly for disadvantaged groups. The government maintains that these changes will better align contracting practices with economic priorities and regional needs, encouraging targeted investment in workforce development across the UK.