How apprenticeships fit into the new social value guidance for government contracts

The new Government Procurement Policy Notice PPN 026, published 5 August, places apprenticeships even more firmly at the heart of social value.

From 1 January 2027, any central government procurement worth £1m+ will have 10% of scoring (20% for contracts £5m+) allocated to social value initiatives related to employment opportunities and learning and development activities.

Key takeaway

Government suppliers now face a major shift: from January 2027, large public‑sector contracts will require clear, measurable social value linked directly to jobs and skills. Apprenticeships become one of the most powerful and cost‑effective ways to meet these new requirements. By building talent pipelines, supporting young people and those facing barriers to employment, and investing in high‑quality training, organisations can strengthen bids, improve workforce capability, and create meaningful impact in local communities.

The PPN shifts focus from a wider set of social outcomes to prioritising British jobs, skills, and opportunities for people facing barriers to employment in our local communities.

In‑scope organisations must choose one of two delivery outcomes, each with its own award criteria:

Outcome 1: Good jobs, fair pay and fair working conditions
This outcome focuses on helping people get into work, stay in work, and progress in their careers.
Award criteria include: creating or retaining high‑quality jobs, providing fair working conditions, and ensuring fair pay.

Outcome 2: Addressing skills shortages and widening access to skills development
This outcome prioritises training and development, particularly for people who face barriers to employment or struggle to enter the labour market.
Award criteria include: providing training (including apprenticeships), supporting in‑work progression, and building talent pipelines that give young people – especially those facing barriers – clear routes into apprenticeships and other development opportunities.

The new PPN also places greater emphasis on reporting against KPIs, requiring reporting on the social value KPI at least once every 12 months.

Full guidance will be published in the autumn, and it is expected that the guidance will focus particularly on addressing opportunities for those not in employment, education or training (NEETs); those transitioning from education to employment; those with a long-term health condition or disability; care leavers; and other communities that face barriers to employment. We will identify target skills related to skills shortages.

Entry-level apprenticeships such as Business Administrator, Event Co-ordinator, Multi-Channel Marketer and Content Creator can all provide excellent skills development and employment opportunities for young people to start their careers. Specialist apprenticeships such as Service Designer, Sustainability and Social Impact Practitioner, and Marketing Manager help in-work progression, staff retention and improve service quality.

Apprenticeship training is free to larger organisations and at a 95% discount to smaller companies. The business must set aside a minimum of six hours per week for study time for formal seminar sessions and learning activities. 86% of employers said apprenticeships helped them develop skills relevant to their organisation. Apprenticeships also support diversity. There is extra funding from the government to train neurodiverse apprentices and those with physical disabilities. According to the government, over 20 years the proportion of people of black, Asian and mixed ethnicity apprentices has trebled. People of black and mixed race heritage are apprentices at double their proportion in the population as a whole.

The HR/L&D functions of many large organisations are only too pleased to receive creative ideas from functional teams about ways to spend the levy – if it isn’t spent then it is lost to the company and at present, HM Treasury is holding nearly £800 million of unspent levy funds!

With the right planning now, suppliers to government can use apprenticeships to meet these requirements and create meaningful opportunities for the people and communities who need them most.

Choosing an apprenticeship provider

You can search the full range of apprenticeships available on the Skills England website. The GOV.UK website will then help you find a suitable apprenticeship provider.

JGA Group is an Ofsted Outstanding training provider, priding ourselves on our high-quality and inclusive programmes. Our range of apprenticeship solutions for marketing and sales teams is one of the most comprehensive in the country. JGA skills coaches and tutors are not just teachers. They are professionals with current experience in the role, often maintaining a portfolio of consulting positions alongside their training/coaching responsibilities.

90% of employers and 95% of apprentices this year rank us Excellent or Good!

Looking to recruit or upskill within your company?

To find out more about apprenticeships, speak to our helpful team: sales@jga-group.co.uk

FAQs

From January 2027, 10–20% of scoring will be tied to social value linked to jobs and skills. Using apprenticeships to create employment pathways and develop staff capability will directly strengthen your bid.

Apprenticeships count as skills‑development activity under Outcome 2 and support fair work, progression and retention under Outcome 1. They provide measurable, reportable impact – exactly what the new PPN requires.

The upcoming guidance prioritises young people, NEETs, care leavers, people with disabilities or long‑term health conditions, and communities facing barriers to employment. Apprenticeships are a practical route to support these groups.

Entry‑level programmes (Business Administrator, Event Co‑ordinator, Multi‑Channel Marketer, Content Creator) support early‑career talent. Specialist programmes (Service Designer, Sustainability & Social Impact Practitioner, Marketing Manager) help with in‑work progression and retention.

Training is free for levy‑paying organisations and 95% funded for SMEs. The main requirement is six hours per week of protected learning time.

Yes. Government data shows significant increases in participation from Black, Asian and mixed‑ethnicity apprentices, and additional funding is available for neurodiverse and physically disabled learners.

Unused levy funds expire and currently almost £800m is sitting unspent. Apprenticeships allow you to convert that lost value into workforce capability and social value impact.

Sources:
UK Government – Procurement Policy Note 026/24, published 5 August 2024, outlining new social value requirements for central government contracts from January 2027.
Skills England – official directory of approved apprenticeship standards across all sectors. Gov.uk – guidance on selecting and registering with approved apprenticeship training providers.
Department for Education – employer research on apprenticeship impact, skills development and workforce outcomes.
UK Government – Apprenticeship Diversity Data, including participation trends for neurodiverse, disabled and ethnic‑minority apprentices.
FEWEEK – Apprenticeships budget top-up piles cost pressure on ministers (2026)