Social Value Act goes live Thursday 31January – A challenge to private sector providers of public services?

The Social Value Act comes into force on 31 January and will require public authorities to have regard to economic, social and environmental wellbeing in connection with public services contracts”.

From next month, public bodies spending tax payers money on public services (from the NHS to swimming pools) will have to consider everything that the contractor brings to the table – they will no longer be able to make decisions solely based on the cheapest price.  Value for money will have to measure value to people and communities.

But what is Social Value?

The best way to explain Social Value is to show examples of the social businesses which are already bringing Social Value to the services they deliver². But the key difference between them and private business is that they put the profits back into the services they are delivering and their communities. Public authorities will now have to take this into consideration.

As public sector markets, such as policing and health are opened up, this legislation is going to be of vital importance to ensure that public spending decisions take Social Value into account.

Jonathan Bland, Social Enterprise leader and guru, CEO of Social Business International¹ and E3M club of social enterprise leaders, said:

“I challenge the Government to make the Social Value Act work and be more than warm words and good intentions – otherwise nothing will really change. The examples of businesses already delivering Social Value beg the question of those spending taxpayer’s money on public services – why wouldn’t you want a social enterprise running them? As well as excellent service providers, all their profits are reinvested in their business or their community. E3M is a club of social enterprises running public services of many different kinds – we aim to show the Social Value of these businesses.”

For further information and to set up interviews, please contact

Jonathan Bland on 0203 372 2878 or;   Glenys Thornton on 07961 844165 or


Notes for Editors

¹ Social Business International specialises in innovation and knowledge transfer in the field of social enterprise, by connecting people and social businesses across Europe and the World. SBI designs activities and programmes to support the growth of social enterprise.

² Social Value in action


Sports and Leisure Services


GLL is the pioneering worker-owned, charitable social enterprise that first took over the operation of Greenwich Council’s leisure centres in 1993 as an innovative ‘spin out’. Today GLL has a turnover of £100M, employs 5000 people in over 100 leisure centres, has just secured its first Libraries Contract and is key Social Enterprise player in the delivery of 2012 Olympics and Paralympics and will be the 2012 heritage manager of the Aquatics Centre, due to open 2014. The GLL ‘model’ has been replicated in more than 120 local authorities throughout the United Kingdom.

Contact: Mark Sesnan 07966647702


Social Care and Homes for Elderly and Disabled


Sandwell Community Caring Trust (SCCT), established in 1997, provides residential care, respite care, supported living, end of life care, care at home and day care services for adults. It is a company limited by guarantee and registered charity, and according to The Sunday Times, one of the best companies to work for in the UK.

The Trust was originally set up in an effort to save services from closure when Sandwell Metropolitan Borough Council had to reduce its social care budget significantly and a range of highly valued services were in danger of being closed down. Since then the Trust has expanded its range of services so that it now works with older people, as well as people with dementia, learning and or physical disabilities, complex care needs, challenging behaviour and mental health issues. SCCT is committed to providing high quality, user focused care at a lower cost than in-house local authority provision, without compromising its standards. By cutting management costs, it has been able to significantly increase the percentage of its turnover spent directly on front-line care.

Contact: Geoff Walker 07733322470


Care Plus Group works in communities in North East Lincolnshire and delivers health and social care services. It was created as an independent social enterprise under the Department of Health’s “Right to Request”.  The transfer of both health and adult social care staff has allowed the creation of a truly integrated health and social care organisation.

Formed in 2011 Care Plus employs over 750 members of staff providing a wide range of community services ranging from meals on wheels to community nursing, physiotherapy to dementia care. Care Plus delivers a large number of adult health and care services. Care Plus is a Community Benefit Society – any profit made is reinvested back into the development and delivery of health and care services ensuring it can constantly evolve and develop the services offered to communities.

Contact: Lance Gardner 07595385699


Public transport


HCT Group is a social enterprise in the transport industry. It generates its revenues from transport contracts won in the marketplace, from London red buses to social services transport, from school transport to Park and Ride, from community transport to education and training. It now has nine depots spread across London and Yorkshire, a fleet of over 320 vehicles, over 700 employees and delivers well over 12 million passenger trips on its buses every year. HCT Group does not do this to create shareholder value; rather it aims to create community value. Profits from commercial contracts are reinvested into further transport services or projects in the communities served by HCT Group. Training services are delivered for people who are long-term unemployed that specifically focus on employment and skills. HCT Group aims to create employment opportunities for people in deprived communities, contribute to local economies and actively seek new ways to make communities better places to live and work through the way it operates.

Contact: Dai Powell 07976407062



And many others




CAN  /

CAN is a social enterprise, which provides collaborative work space exclusively for charities and social ventures. It also runs an advisory service supporting charities and social enterprises on a range of property issues.


City Healthcare Partnership / Denise Anderton

City Health Care Partnership (CHCP) CIC is an independent, co-owned social enterprise providing NHS services to over 500,000 people in Hull and the East Riding area of Yorkshire. It offers a range of community based treatments, as well as early interventions which help to minimise the need for acute care in hospital, and promote healthy lifestyles. A key achievement has been the creation of specialist palliative care clinic which offers a holistic programme of care for patients with a life limiting illness, enables home visits and reduces hospital admissions. Other innovations include the development of a ‘telehealth’ service for patients with long-term conditions, the piloting of Personal Health Budgets and the development of a Medicines Management Service. As an employee owned organisation which allows all permanent staff to purchase a £1 share in the organisation, staff have a sense of belonging, accountability and the right to have a say about the running of the organisation.


Fusion 21  /

Fusion21 is a social enterprise that invests any surplus back into the delivery of social outcomes and the creation of social value across the country. The model has gained widespread acclaim within the sector. Working nationally, Fusion21 links spending programmes across numerous organisations with the creation of training opportunities and sustainable jobs for local people. As well as generating social value this model improves efficiency in the procurement process and generates significant cash savings. By using a small part of the savings generated through the procurement process, Fusion21 are able to fully fund its training and employment programmes.

Halo provides Sports and Leisure in Herefordshire and recently won a leisure services contact in Brigend. Halo Leisure prides itself on offering more than just fitness and leisure activities. Its centres also promote social inclusion and community safety. Halo’s initiatives to encourage young people to participate in exercise and sporting activities, for example, has helped to address anti-social           behaviour, as children feel they have a purpose in life and are beginning to form relationships with older people in the community.

Navigo  /

Navigo are based in North East Lincolnshire providing mental health services, and are an NHS spin out. The creation of a not-for-profit social enterprise to provide mental health services was part of the Right to Request scheme in which all provider services had to split from their commissioners. In North East Lincolnshire this means that mental health services are no longer provided by the Care Trust Plus. NAViGO’s mission is to provide services that all members would be happy for their own family to use, and it aims to do this by to building on its successes in particular areas such as in-patient dignity feedback, length of stay and also employment, accommodation and Improving Access to Psychological Therapies (IAPT) through the highly successful Open Minds centres.
P3 /

P3 is a social enterprise that deals housing, homelessness, ex-offenders, complex needs,

mental health and youth focused services – West Midlands, Derbyshire and SW London. ‘People, Potential, Possibilities’ – P3 is a social enterprise that deals holistically with supported housing, homelessness, ex-offenders, complex needs, mental health and youth focused services including

education, activities, training and advice. P3 exists to create and operate services, facilities and

opportunities for vulnerable and disadvantaged people, which offer effective and long lasting routes out of social exclusion. It seeks to work in partnership with those sharing its vision, goals and mission. P3’s main aim is to give people the practical skills and self esteem that they need to sustain an independent and self-sufficient lifestyle.


Turning Point
Turning Point is a leading health and social care organisation providing services in England and Wales for people with drug and alcohol related problems. It has been operating for almost 50 years, which means it is highly experienced in caring for, and about, people with complex needs. Turning Point has a track record of finding innovative ways of delivering services to maximise effectiveness and reach as many people as possible. Whether its service users come with drug or alcohol problems, mental health issues, employment issues, a learning disability or a combination of these, Turning

Point is able to offer services that respond to the needs of each individual.


Partners of E3M and experts in social enterprise


Bates Wells and Braithwaite BWB is a commercial law firm widely regarded as the

leading charity and social enterprise firm in the UK. BWB are experts in the Social Value Act.


Unity Trust Bank is a social enterprise and a specialist bank for civil society, social enterprises, CICs, councils, and trade unions, and supports its customers with socially-responsible banking services. Adrian.Oldman@unity,


The University of Northampton has a vision to become the UK’s leading university for social enterprise by 2015.


For further examples

3M Social Enterprise Leaders Group

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