# STATE OF SOCIAL PROCUREMENTCountry Profile: United Kingdom A strong track record of social value laws and corporate procurement programs. **131,000** social enterprises are based in the UK **3.4%** Social enterprises contribute 3.4% of the UK's national GDP **£656 Million** spent on social procurement through partners of the Buy Social Corporate Challenge ## Overview One of the first countries to focus on social entrepreneuership at large and social procurement specifically, the United Kingdom stands as a leader in social procurement. Key contributors include innovative legislation like the Public Services (Social Value) Act 2012 and corporate initiatives such as Social Enterprise UK's "Buy Social Corporate Challenge" that have collectively contributed to growth in the country's social enterprise sector. ## Environment and context The roots of social entrepreneurship in Britain are often traced back to The Rochdale Society of Equitable Pioneers, founded in 1844, a precursor to the modern co-operative movement. It is now estimated that there are 131,000 social enterprises in the UK. The sector contributed approximately £78 billion to the UK economy over the last financial year, which is equivalent to around 3.4% of GDP. The Blair government of the late 1990s and early 2000s was the first to develop a specific policy framework in support of social enterprise which led to a number of advances including: the launch of UnLtd: The Foundation for Social Entrepreneurs (2000) to support and invest in startups; a specific legal structure for social enterprises the Community Interest Company (2005) and the world’s first social investment wholesaler, Big Society Capital (2011). ## Current State of Social Procurement Social procurement has been a driver for UK Government since the passing of The Public Services (Social Value) Act 2012 placed a legal obligation on public bodies to consider the social and environmental impact of their procurement alongside the economic impact. This legislation now influences almost £100 billion of public sector spending annually and also enjoys increasing influence on private sector procurement. Private sector businesses need to demonstrate social value in their operations and supply chains when bidding for public sector contracts. The inclusion of social enterprises in supply chains is one way of achieving this.The earliest drivers of corporate social procurement were businesses themselves - first Wates, one of the UK’s largest privately owned construction companies launched their “Social Enterprise Brokerage” in 2012 with an ambition to have a social enterprise on every construction site nationally. Then in 2014 Johnson & Johnson launched their “Social Impact through Procurement” program which aimed to, in the words of their then UK VP Sophie Dutilloy “For Every £1 that we spend in this country the philosophy is; can we spend that £1 on something that will better society?’ Not only will we procure what we need but that £1 will also make a lot more impact on the communities in which we live.” The program was a response to a challenge from the UK business’ US counterparts to build an impactful procurement program similar to the supplier diversity work in the US, where J&J were an early adopter and signatory to the billion dollar roundtable. # Outlook A number of key areas determine the future of social procurement in the UK. ### Integration of SMEs One is to increase the number of small and medium-sized businesses engaging in social procurement. Social Enterprise UK has launched the Social Procurement Connect service to start building this connectivity. Siemens is one of the partners signed up to the Buy Social Corporate Challenge programme, and they have launched their own ‘Buy Social’ initiative to encourage companies within their supply chain to engage in social procurement. ### Public sector contracting Secondly, there will be an increased opportunity for social procurement through government supply chains with the passing of The Procurement Act 2023, which encourages public sector contracting authorities to “maximise” procurement spend with SMEs (Small and Medium Enterprises) and VCSEs (Voluntary, Community and Social Enterprises). Further opportunities will also be driven through demand in corporate supply chains as businesses are required to report on their subcontracted spend with social enterprises when delivering government contracts over £20 million. ### B2B social procurement Finally, growing the number of social enterprises delivering B2B services will be vital as demand continues to outstrip supply. There is a specific lack of coverage by social enterprises in high-skill, high-value sectors. In response, some private-sector companies have set up supplier-readiness programs to stimulate supply from social enterprises. An example is Wates working with Impact Hub to create the ASSETS program, which supports social enterprises in the construction sector. Another example is Amey working with Hays, their long-term workforce solutions partner, to deliver the Amey Hays Social Enterprise Initiative, an accelerator delivering tailored business support to several social enterprises with the potential to enter their supply chains. ## Key programs and initiatives Regional programs and initiatives offer opportunities for companies to get engaged in social procurement in this country. ## Frequently Asked Questions *Common questions and answers* ## Regional case studies The United Kingdom features several inspiring case studies on social procurement ## Frequently Asked Questions *Common questions and answers* ### National Partners This country profile has been prepared by Social Enterprise UK and telos. *Partner organizations and sponsors* Last update was made on 13 January 2026.