Public sector contracts to reward employers investing in skills and apprenticeships
The UK Government has announced significant changes to the way social value is assessed in central government procurement, placing a greater emphasis on skills, apprenticeships and workforce development when awarding public sector contracts.
Under the updated approach, organisations bidding for government contracts will be assessed more heavily on how they contribute to local economic growth, tackle skills shortages and create opportunities for people entering the workforce.
Social value weighting will increase from 10% to 20% for contracts worth £5 million or more, while contracts between £1 million and £5 million will carry a minimum 10% weighting. The reforms will also place greater emphasis on apprenticeships, work placements and supporting young people into employment.
The changes reflect a growing recognition that skills investment is not simply a social value initiative. It is a key driver of economic growth, workforce resilience and social mobility.
As part of the Government's wider procurement agenda, Prime Minister Andy Burnham has been clear about the role procurement can play in supporting local economies. Speaking about the Government's ambitions, Burnham said the focus is on delivering "good growth in every postcode", with work placements and apprenticeships placed at the centre of how contracts are awarded.
A welcome focus on skills
The Government's decision to place greater emphasis on skills and apprenticeships within procurement frameworks sends a powerful signal to employers across the UK. By rewarding organisations that create high-quality jobs, provide opportunities for young people and invest in workforce development, public procurement can become a catalyst for both economic and social progress.
At a time when employers continue to face persistent skills shortages, particularly across digital and technology roles, creating more routes into employment and training has never been more important.
Skills create opportunities beyond the workplace
For QA, these ambitions closely align with work that has been central to our mission for many years.
Through our apprenticeship programmes, Teach the Nation initiative and wider social impact activity, we have consistently focused on helping people access the skills needed to thrive in the modern economy. Whether supporting career starters, career changers or individuals looking to progress in work, our aim is to open pathways into sustainable, rewarding careers while helping employers build the talent pipelines they need.
The Government's announcement recognises the wider value that skills programmes deliver, not just for businesses, but for communities and society as a whole.
"Apprenticeships are one of the most powerful tools we have to create lasting social impact. They help people develop confidence, skills and long-term career opportunities, while giving employers access to the talent they need to grow.
At QA, we have been committed to this mission for many years through our apprenticeship programmes, Teach the Nation initiative and broader social impact work, helping people from all backgrounds access opportunities in digital and technology careers.
It's encouraging to see skills, apprenticeships and workforce development being given greater prominence within public procurement, recognising the important role they play in strengthening communities, improving social mobility and supporting sustainable economic growth."
Jo Bishenden, Chief Learning Officer, QA
Investing in people for long-term growth
The reforms represent an important step towards recognising and rewarding organisations that invest in workforce development. By placing greater value on skills, apprenticeships and employment opportunities, the Government is reinforcing the idea that economic growth and social impact are closely connected.
As further guidance is published ahead of implementation in January 2027, employers will have an opportunity to demonstrate how they are supporting communities, addressing skills shortages and creating opportunities for the next generation.
At QA, we welcome the renewed focus on skills and apprenticeships and remain committed to helping individuals, employers and communities build the capabilities needed for the future.