The waste management company welcomed the government’s decision to increase the weighting given to social value in major public sector contracts.
However, it said that the revised approach focuses too narrowly on jobs and skills at the expense of wider environmental and social benefits.
The reforms, announced today (5 August 2026), will see businesses bidding for central government contracts worth more than £5 million assessed more heavily on the benefits they bring to local communities.
From 1 January 2027, the weighting for social value in these procurements will increase from 10% to 20%, with suppliers judged on their ability to create high-quality jobs, tackle local skills shortages and provide apprenticeships and work experience.
Under the new model, bidders will receive additional credit for creating jobs that pay above the legal minimum wage and for supporting groups, including young people not in education, employment or training (NEETs), care leavers and people with long-term health conditions.
Responding to the announcement, Dr Adam Read MBE, Chief External Affairs and Sustainability Officer at Suez, said the government’s intention to use procurement to boost economic growth and support local communities was “very much welcomed”, adding that the increased weighting for social value was a “positive” step.
However, he added that limiting the assessment to just two outcomes “undermines the value in areas which support local economies and the environment”, including responsible sourcing of materials, workplace health and wellbeing, biodiversity and carbon reduction.
Read warned: “This new narrowed approach risks more than a decade’s worth of progress in these areas and we would strongly encourage a place-based approach that truly meets the needs of local economies and their communities.”
Social value from public-private waste contracts
Social value requirements for public contracts for waste and recycling have already driven tangible benefits, including through re-use schemes, local clean-up efforts and community funds.
As part of its contract with Westminster Council, Veolia set up a ”Road to Work” scheme, whereby homeless people and rough sleepers can join Westminster’s street cleaning team, as well as providing specialised support services like counselling and help with housing.
Suez’s contract with Southend-on-Sea City Council also included a provision that 100% of profits from two new reuse shops would go to a local charity partner.
The most well-known example of how social value has been included in a public-private partnership in the sector is Suez’s contract with the Greater Manchester Combined Authority, which has seen Suez raise funds through its Renew Hub for the Mayor’s Homelessness Fund and other community projects in the region.
The company announced a further £100,000 donation generated through the Renew project to the Greater Manchester Mayor’s Charity in May 2026, taking its total contribution to £600,000.
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