Government Publishes Revised Social Value Model (PPN 026)

03 September 2026

Major Policy, Regulation & Funding Updates

Key developments affecting social firms, social enterprises and inclusive employment across the UK and Wales.

Major Policy & Procurement Shift: Government Publishes Revised Social Value Model (PPN 026)

The UK Government has released a revised Social Value Model, doubling the minimum social value weighting from 10% to 20% for central government contracts worth £5m+ and sharpening the focus on good jobs and skills, especially for people facing barriers to employment.

Why it matters for social firms:

This is the biggest procurement shift in years — and it directly rewards the core work of social firms.
Social enterprises delivering employability, skills development, and inclusive hiring will be strategically advantaged in public sector bidding.
Smaller social firms are protected: contracts under £1m are typically exempt from the weighting requirement.

Charity Commission Risk Assessment 2026: Sector Under Pressure

The Charity Commission’s new risk assessment highlights three escalating risks:

Financial resilience challenges
Abuse of charitable status for private benefit
Structural vulnerabilities from regulatory gaps

It also flags ongoing threats including governance failures, safeguarding, cyber risks, extremism, and geopolitical turbulence.

Why it matters for social firms

Expect tighter scrutiny of governance and public benefit.
Social firms with strong compliance and transparent impact reporting will stand out.
Cybersecurity is now a frontline issue — especially relevant given recent CRM breaches in the sector.

CIC Investigations: Fundraising Misconduct Identified

The Fundraising Regulator has concluded that Atoma Union CIC and Youth Works Union CIC conducted street fundraising without required licences, with complaints including verbal and physical altercations. Breaches of the Code of Fundraising Practice were confirmed.

Why it matters for social firms:

CICs are under increasing regulatory scrutiny.
This reinforces the need for impeccable public-facing conduct and compliance.

A timely reminder for members to review fundraising policies and training.

New Wales-Wide Funding: Local Growth Fund Delivered Through Four Regional Hubs (2026–27)

Wales has entered a new funding era with the launch of the Local Growth Fund (LGF) — a major programme supporting business creation, innovation, productivity, carbon reduction, and high-street regeneration.

Delivery is coordinated through four regional hubs, each responsible for administering business support in their area.

North Wales

Led by Cyngor Gwynedd

Supports pre-start businesses, growth, innovation, carbon reduction and test-trading bursaries.

Full application guidance available online

Mid Wales

Led by Ceredigion County Council

Ceredigion delivers the Cynnal y Cardi Business Capital Grant, supporting productivity, innovation and business expansion — including social enterprises.

Applications are currently closed.

South East Wales

Led by Rhondda Cynon Taf CBC

RCT leads regional LGF planning and delivery for 2026–27 and administers the Business Growth Grant, supporting start-ups, innovation, diversification and entry into new markets.

Applications are currently closed.

South West Wales

Led by Swansea Council

Swansea delivers a comprehensive LGF grant menu, including:

Pre-Start Grant (£500–£25,000)
Growth Grant (£1,000–£50,000)
Innovation Grant (£500–£10,000)
Carbon Reduction Grant (£1,000–£10,000; up to £30k in exceptional cases)
High Street Helper (up to £30,000)
Launchpad Bursary (£250–£1,000)

Contacts:
StartupGrant@swansea.gov.uk
GrowthGrant@swansea.gov.uk

Regional Funding Allocations (2026–27)

North Wales: £33.98m
Mid Wales: £11.53m

South West Wales: £39.73m
South East Wales: £82.59m

These allocations reflect deprivation, productivity and rurality indicators — ensuring funding reaches areas with both need and growth potential.

Why This Matters for Social Firms

LGF priorities strongly align with inclusive employment, innovation, community resilience, and carbon reduction.
Social firms operating in disadvantaged communities are well-positioned due to LGF’s focus on inequality and productivity gaps.
The regional hub model simplifies access: businesses apply through a single gateway per region.