Companies bidding for government contracts worth £5m or more will be scored on the jobs and training they create rather than on net zero, equality and diversity measures, under changes to the £90bn public procurement system announced by the Cabinet Office on Wednesday.
The weighting given to the wider benefits a bidder brings, known as social value, will double from 10 per cent to 20 per cent of the assessment for contracts at that level. The new 20 per cent score will be based on job creation, replacing the previous set of measures, which covered areas including equality and diversity, net zero and the post-Covid recovery.
Bidders will be given extra credit for creating local jobs that pay above the minimum wage, for training that plugs local skills gaps and, in particular, for offering 45-day work experience placements for young people.
The rules will apply to both British and international firms bidding for central government contracts and take effect from 1 January 2027, with detailed technical guidance due in the autumn, the Cabinet Office said.
The changes come as the government seeks to tackle youth unemployment, with the prime minister, Andy Burnham, saying he wants to create “growth in every postcode”. Burnham used a similar initiative during his time as mayor of Greater Manchester.
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