Report from SCAPE and Social Value Portal reveals social value created by skills and employment has more than doubled since 2022
Room for improvement across the country through a stronger national campaign and focus on upskilling to support Labour’s growth agenda
New research has revealed that apprenticeships have become one of the biggest drivers of social value generation in the UK construction industry, with job creation measures making up 16.4% of the total amount of social value generated in 2023, more than doubling since 2022 (8%).
Published recently by public sector procurement authority SCAPE in partnership with Social Value Portal, the Social Value in Construction Benchmarking Report 2024 highlights how social value delivery is evolving and becoming more embedded across the construction industry.
Across the UK, 329 contracts with a combined total value of £3.2bn (accounting for 10% of all public sector construction spend) were analysed to establish the national and regional trends in social value delivery. Of the contracts analysed, 282 projects enabled skills and employment improvements, delivering more than 15,600 weeks of apprenticeship placements on site across the country.
However, the data, which compares the number of apprenticeship weeks delivered per £1m of contract spend, shows that there is significant variation across regions. Leading the way with an average of 10 weeks delivered per £1m is the West Midlands, where SCAPE has several live projects on site. This is closely followed by almost 9 weeks in Wales, where clients procure in accordance with the Well-being of Future Generations (Wales) Act 2015 and where the national apprenticeship employment scheme Y-Prentis is in operation. Meanwhile London, despite representing the highest contract value of those analysed, lagged behind at just 4.5 weeks per £1m.
Apprenticeships help to address the problems caused by an ageing workforce and the skills gap. They are critical to safeguarding the future of the construction sector, but the regional disparity reported in SCAPE’s analysis indicates that more can be done at national level to harness this potential.
With apprenticeship outcomes being hugely influenced by national procurement policy, the report suggests that Central Government has an opportunity to support Local Authorities in delivering more consistent improvement across the UK. This would support Labour’s aims to kickstart economic growth and drive forward productivity; a core part of the Government’s plans.
The report points again to Wales, where many framework operators and clients make apprenticeships a contractual requirement, and to SCAPE’s experience of collaborative social value planning around the Commonwealth Games in the West Midlands as examples of best practice.
The report’s findings indicate that if all regions achieved the same level of delivery as these two, an additional 13,810 apprenticeship weeks could have been created – an 88% increase. This would result in roughly 288 extra apprenticeships nationally and make significant strides towards supporting the next generation of skilled workers.
Since 2020, SCAPE has produced an annual Social Value in Construction Benchmarking Report for the UK construction sector, drawing on the combined expertise and industry reach of Social Value Portal, SCAPE and its delivery partners to provide a definitive review of social value in public sector built environment projects.
The findings show that overall social value return on investment is on an upwards trajectory since SCAPE’s first report in 2020, increasing from 17% to 27%. The 2024 report indicates that social value delivery in most regions is increasing year-on-year, on average by 10-15%. The biggest jumps were in the North West and the South East, which is reflective of the high number of projects in these areas’ major cities.
To accelerate the pace of change, this year’s report suggests solutions such as a greater focus on smarter procurement, including via the use of quality frameworks – such as those like SCAPE’s that are verified as Gold Standard, or those that are part of the National Association of Construction Frameworks (NACF). It also advocates for more transparency of pipeline, which supports long-term planning, enhances project outcomes and aligns with the Procurement Act 2023 due to be implemented in February 2025.
Mark Robinson, group chief executive at SCAPE, said: “The Social Value in Construction Benchmarking Report highlights the positive impact the construction industry is having on communities up and down the country. The increased value delivered by apprenticeships we have seen over the past year demonstrates the clear potential these programmes have for supporting the next generation – as well as the industry’s ability to drive positive economic growth.
By facilitating shared learning and best practices, SCAPE is proud to be leading the way in unlocking social value through public sector procurement. Our Gold Standard frameworks deliver strong skills and employment outcomes for the benefit of both local communities and economies. However, there is still more to be done – with Labour’s mission to drive economic growth and jobs creation, it is evident that there is a real opportunity for Government and industry to work together to ensure best practice is reflected consistently across the country. The findings of this report show a clear route for how this can be achieved and the benefits waiting to be realised.”
Nathan Goode, Chief Strategy Officer at Social Value Portal, added: “The construction sector has a pivotal part to play in building stronger, more resilient communities, and in progressing the wider social value movement. We’re encouraged by insights in this report, particularly around the year-on-year growth of the sector’s social value return on investment. While there is always room for improvement, the construction industry is clearly embracing its role in creating positive social and environmental outcomes. At Social Value Portal, we’re proud to be working alongside SCAPE and our many other construction partners to make sure every project delivers lasting value for society where it is needed.”
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