Andy Burnham Procurement Changes To Double Jobs Weighting On Major Contracts

Companies bidding for large central government contracts will be judged more heavily on local jobs, skills and apprenticeships from January 2027, although the changes will not automatically rewrite procurement rules used by London’s councils, City Hall or Transport for London.

Prime Minister Andy Burnham’s government is changing public procurement rules to give job creation and skills a larger role in deciding which companies win major Whitehall contracts.

From January 2027, social value will account for 20% of the evaluation score on central government contracts worth at least £5 million, double the current minimum weighting of 10%. Bidders will be assessed on commitments including creating well-paid local jobs, addressing skills shortages and providing apprenticeships or work placements for young people.

The government also plans to remove the social value requirement from contracts below £1 million, arguing that the existing process creates disproportionate costs and barriers for smaller businesses, charities and social enterprises.

First Secretary of State Louise Haigh said the revised rules were intended to ensure that about £90 billion spent annually through government contracts produced benefits that residents could see in their communities.

“For too long, securing government contracts has been a tick box exercise that fails to deliver the positive change that people feel in their pocket and see in the places they live,” Haigh said.

She added: “These new rules will ensure the £90bn that is spent each year through government contracts supports British jobs, skills and people in every postcode.”

Green and Social Criteria to Be Narrowed

The reforms will concentrate the social value score on employment, training and skills rather than the broader range of environmental and social objectives previously available to contracting authorities.

Existing criteria can cover issues such as carbon reduction, equality, modern slavery, community wellbeing and support for victims of domestic abuse. Environmental groups have criticised the narrower approach, arguing that ministers are creating an unnecessary choice between employment and climate objectives.

However, the announcement does not mean every environmental condition attached to public contracts will disappear. Separate legal, departmental and sector-specific requirements may continue to apply.

For example, NHS England has published carbon reduction plan requirements for suppliers of NHS goods, services and works that are due to take effect from 1 April 2027.

The wider procurement system will also continue to operate under the Procurement Act 2023, which took effect for new procurements on 24 February 2025. The Institute for Government said ministers should build targeted reforms on that framework instead of replacing it before organisations and suppliers have had time to adapt.

What the Changes Mean for London Suppliers?

Businesses in London seeking central government work worth £5 million or more may need to provide more detailed and measurable commitments on employment, apprenticeships and local training.

Depending on the contract, bidders could be asked to explain how many jobs they would create, what wages would be offered, which skills shortages they would address and how opportunities would reach young people. Companies may also need systems for recording whether promised benefits are delivered after a contract is awarded.

The reforms could give London-based small and medium-sized businesses an advantage where they can demonstrate strong links to local labour markets. Removing social value scoring from procurements below £1 million may also reduce tendering costs, although smaller suppliers could still face challenges competing with larger companies on experience, capacity and price.

The new central government policy will not automatically replace procurement codes operated by the Greater London Authority, Transport for London or individual borough councils.

City Hall approved a separate revision of the GLA’s Contracts and Funding Code in March 2026. That change aligned parts of its purchasing process with TfL’s procedures and reduced the minimum quotation requirement for procurements below £25,000, but it did not place the GLA under the new Whitehall scoring model.

The Institute for Government has broadly welcomed the focus on using the state’s purchasing power more strategically, but warned that a 20% social value weighting could weaken value for money if criteria are vague or unrelated to the main contract.

It recommended that departments publish longer-term procurement pipelines, engage suppliers earlier, identify opportunities for innovation and improve contract data so officials can measure whether promised jobs and apprenticeships are actually created.

Government departments have also reportedly been asked to produce five announcements showing how they will support the procurement agenda. Further guidance will be needed before January 2027 to establish how the new scoring system will work across different types of contracts and how departments will verify suppliers’ employment and skills commitments.