To ask the Minister of Finance how his Department ensures a consistent approach to social value in the public sector.

Mr O'Dowd

Mr Speaker, may I have an extra minute to answer the question?

Mr Speaker

Certainly.

Mr O'Dowd

The procurement policy note (PPN) 01/21 on social value in procurement was revised in February 2025 following reviews by the Strategic Investment Board (SIB) and key stakeholders, including the voluntary, community and social enterprise sectors, Departments and centres of procurement expertise (COPEs). The reviews identified the policy as having made a real difference to how contractors incorporate social value into their business models. However, they also identified some unintended consequences for small and microbusinesses that were finding it more difficult to compete with larger companies for contracts where social value was a scored criterion. Key changes were made to remove barriers for those businesses. The policy ensures a consistent approach to social value in the public sector and mandates that, for services contracts above £500,000 and work contracts over the UK threshold, at least 10% of the total award criteria must be allocated to social value. The PPN further outlines requirements to incorporate social value in procurements under four themes: increasing secure employment and skills; building ethical and resilient supply chains; delivering climate action; and promoting well-being. To help maintain consistency in the scoring of social value, model criteria have been developed. That consistency also helps with reporting social value outcomes, which are monitored through the SIB portal. The social value procurement policy also requires Departments to develop a social value strategy to align social value objectives with their procurement pipelines and to look for other opportunities across their operational and policy responsibilities to improve social and economic outcomes. My Department is the first to publish its social value strategy and recently published its first progress report on the implementation of that strategy. The public procurement policy statement (PPPS) published in June 2025 sets out the Executive's priorities for a more streamlined, simplified and accessible procurement environment. It has four principles, including social value. The social value principle has six objectives, each of which is accompanied by a specific action and descriptor to ensure clarity and consistency in the delivery of the objectives.

Mr O'Dowd

The Member will have heard me set out the comprehensive criteria that are used. As a result of the work that has been carried out, there has been success not only in my Department, with its role in procurement, but in other Departments. We are seeing success. As legislators, we will say that legislation has its uses, but it is not always necessary. If evidence is produced that statute is the best way forward, I will be more than happy to look at it.

Miss Hargey

Minister, you highlighted some of the challenges regarding social value in procurement in the PPN. Will you highlight some of the opportunities and benefits?

Mr O'Dowd

Policies and strategies have their value, but, unless they deliver, they are just documentation. In this instance, over 7,200 people who were long-term unemployed or disadvantaged in the labour market have gained employment and over 370 social enterprises have been part of the supply chain in public-sector contracts. There have been over 11,700 hours of volunteering with the voluntary and community and social enterprise sectors, 27,700 hours of health and well-being initiatives and 2,600 hours of digital inclusion initiatives, and almost 700 environmental action plans have been delivered. It is making a significant difference in our society.

Mr Harvey

The voluntary and community sector in Northern Ireland delivers huge social value through excellent front-line services in the hearts of our communities. Has the Finance Minister an assessment of how much value that sector delivers in Northern Ireland?

Mr O'Dowd

I do not have an assessment in front of me, but the voluntary and community sector has proven its worth time and time again; indeed, I will meet the sector again tomorrow in relation to the local growth fund and the challenges that that will bring. I think that all Members can agree that the voluntary and community sector makes a huge difference across our communities.