The UK government plans to remove mandatory net-zero emissions requirements from public procurement contracts, shifting its focus toward promoting employment opportunities for young people. The changes, announced by Secretary of State Louise Haigh in her capacity as Deputy Prime Minister, will prioritize social value criteria over environmental targets in government contracting.

Currently, net-zero and various social objectives—including addressing domestic abuse and revitalizing local high streets—are part of the evaluation framework used when awarding government contracts. Haigh criticized this approach for being overly broad, noting that many companies struggle to demonstrate their impact across such diverse areas.

Under the new rules, which are set to take effect in January 2027, social value will become a more significant factor in contract assessments. The Cabinet Office will increase the weighting of social value criteria from 10% to 20% for contracts exceeding £5 million. The revised model will emphasize initiatives that generate jobs and create opportunities specifically within the UK workforce, particularly aimed at supporting young people.

Guidance on the updated procurement framework is scheduled for release in the autumn, providing contractors with clarity on the new expectations. The government’s aim is to direct public spending toward fostering good-quality employment and apprenticeships, with a particular focus on reducing the number of young people not engaged in education, employment, or training.

Trade unions have welcomed the policy shift. Charlotte Brumpton-Childs, national secretary of the GMB union, expressed support for the emphasis on creating unionized jobs and apprenticeships through public contracts. The move also aligns with earlier endorsements from Prime Minister Andy Burnham, who has called for expanding work experience placements as a way to tackle youth unemployment.

The decision to scale back net-zero conditions in government procurement marks a notable adjustment in the UK’s environmental and social policy priorities. While environmental objectives are no longer a core requirement in awarding contracts, officials have framed the change as a strategic realignment aimed at maximizing social impact through employment.