Combined Authority Series 1 — Article 2 of 3

VCSE Commissioning Analytics Series — Article 9 of 18 | Combined Authority Series 1 — Article 2 of 3

What Social Value KPIs Are and Why They Matter Under Combined Authority Contracts | Combined Authority Series 1 — Article 2 of 3

Combined authority social value KPIs for VCSEs are the measurable indicators against which VCSE suppliers must demonstrate the wider social, economic, and environmental benefits their service delivers — beyond the core contract deliverables — to the combined authority commissioning them. In 2026, these KPIs have moved from bid evaluation criteria to live contract performance requirements, with the Procurement Act 2023 transparency provisions making underperformance publicly visible on the Central Digital Platform for the first time.

Social value KPIs in combined authority contracts typically fall into five categories. Employment and skills outputs — jobs created or sustained locally, apprenticeships offered, qualifications gained by participants, progression into further training or employment. Community and social wellbeing — volunteering hours generated through the contract, community organisations supported, wellbeing outcome scores for participants. Environmental sustainability — carbon reduction commitments, sustainable procurement percentages, environmental certifications held. Diversity and inclusion — proportion of jobs or opportunities offered to people from underrepresented groups, pay gap reporting, supplier diversity in the contract supply chain. Economic impact — local spend as a percentage of contract value, SME and VCSE involvement in the supply chain, economic value added to the local area.

Each combined authority frames these categories differently. Greater Manchester Combined Authority uses its own Social Value Framework with specific priority themes tied to the GM Strategy. West Yorkshire Combined Authority embeds social value requirements in its commissioning standards. South Yorkshire Mayoral Combined Authority applies a unit cost database approach that quantifies the financial value of each social value output. VCSEs holding contracts across more than one combined authority face the challenge of evidencing social value in multiple formats simultaneously.

The Procurement Act 2023 and What It Changes for Social Value Reporting

The Procurement Act 2023 came fully into force in February 2025, with additional transparency provisions activated in April 2026. The most significant change for VCSEs holding combined authority contracts is the shift from social value as a bid evaluation criterion to social value as a live contract performance requirement.

Under the previous regime, a VCSE could make social value commitments at bid stage and face limited accountability for whether those commitments were delivered. Under the Procurement Act 2023, social value commitments become contractual KPIs. Contracting authorities must include at least three KPIs per contract for contracts above the relevant threshold, and supplier performance against those KPIs is published quarterly on the Central Digital Platform. Underperformance against published KPIs can trigger a Contract Performance Notice — a formal public record of failure that affects future procurement eligibility.

According to analysis from procurement specialists, over 8,000 live contracts worth £5 million or more are now subject to these rules, with new eligible contracts being awarded daily. For VCSEs, the practical implication is that the social value reporting systems they used to complete at bid stage and then largely ignore now need to be operational throughout the contract lifecycle. Manual spreadsheet returns are no longer adequate.

How to Structure Social Value Data Collection for Combined Authority Reporting

Social value data collection for combined authority contracts requires a different discipline to health outcomes data collection. Health outcomes are typically measured at the individual service user level using validated tools. Social value outputs are a mixture of individual-level evidence and aggregate organisational evidence — some tracked at participant level, some at contract level, some at organisational level.

The most effective approach structures data collection into three streams. Participant-level tracking captures individual employment, skills, and wellbeing outcomes for every person who engages with the contracted service — referral date, demographic data, service received, outcome achieved, follow-up status. This data lives in the VCSE case management system. Contract-level tracking captures aggregate social value outputs generated through the contract — volunteering hours, local spend figures, apprenticeships created. This data is typically held in a separate contract management record updated monthly. Organisational-level tracking captures the VCSE’s own social value evidence — workforce demographics, carbon footprint, supplier diversity, pay ratios. This data feeds into the combined authority social value report as background evidence of the VCSE as a social value organisation, not just a social value deliverer.

Quematics builds Power BI dashboards that consolidate all three streams into a single social value analytics view, producing the combined authority KPI report automatically from live operational data. The dashboard tracks performance against each KPI target throughout the contract lifecycle, flags any KPI at risk of underperformance before the reporting deadline, and generates the formatted submission in the combined authority required format.

Social Value Monetisation: When Combined Authorities Ask for Financial Value

Some combined authorities — particularly South Yorkshire and elements of Greater Manchester commissioning — use unit cost databases to express social value outputs in financial terms. A job entry for a long-term unemployed person might carry a unit value of £9,700. An apprenticeship created might carry a unit value of £3,900. VCSEs holding these contracts need to understand the unit cost methodology used by the combined authority and apply it consistently to their output data.

This monetisation approach creates both an opportunity and a risk for VCSEs. The opportunity is that a VCSE that can demonstrate high social value output — expressed in financial terms — is making a compelling case for contract value that goes beyond simple service delivery metrics. The risk is that inconsistent data collection or incorrect application of unit costs creates evidential gaps that undermine the social value claim at performance review.

Frequently Asked Questions

What are social value KPIs in combined authority contracts?

Social value KPIs in combined authority contracts are measurable indicators against which VCSE suppliers demonstrate the wider social, economic, and environmental benefits their service delivers beyond core contract deliverables — including local employment, apprenticeships, volunteering hours, carbon reduction, and community engagement.

Are combined authority social value KPIs the same as the Social Value Model?

Not always. Combined authorities have developed their own social value frameworks reflecting local priorities. Greater Manchester, West Yorkshire, and South Yorkshire each have distinct requirements, though most align broadly with the Social Value Model themes.

What happens if a VCSE fails to meet its social value KPIs?

Under the Procurement Act 2023, underperformance against contract KPIs can result in a Contract Performance Notice published on the Central Digital Platform. Published poor performance is a discretionary ground for exclusion from future procurements.

How should VCSEs collect social value data during contract delivery?

VCSEs should collect social value data at individual participant level from point of referral, recording employment status, qualifications, protected characteristics, and outcome achievement. Aggregate outputs such as volunteering hours should be recorded monthly in a structured system that produces the combined authority report format automatically.

Can Power BI produce social value reports for combined authority contracts?

Yes. Power BI connects to VCSE case management systems and produces social value KPI reports in the format required by combined authority commissioners — including individual-level outcome evidence, aggregate social value metrics, and demographic breakdowns — automatically refreshed without manual extraction.

To discuss how Quematics can build combined authority social value reporting and VCSE commissioning analytics infrastructure for your VCSE, visit our data analytics for charities page or contact us for a free 30-minute data review.