Not long ago, "social value" was just a line in a company's annual report. Not anymore. A recent survey found that 7.4 million UK households are struggling to pay for essentials like food and heating — the worst it's been since records began in 2021. At the same time, the government is getting stricter about which suppliers can prove they actually help their communities.

Put those two things together, and you get a real shift: doing good isn't enough on its own anymore — businesses need to show it, with real numbers. That's especially true here in the South West, which is becoming a genuine hotspot for this kind of work. In this article, we cover five things worth knowing right now: new rules for government contracts, the growing cost-of-living crisis, how staff volunteering is changing, why the South West stands out, and what small businesses can actually do about it. We built CommonGood to help businesses measure this kind of impact, so we keep a close eye on where things are heading.

1. Government contracts now reward more than just price

If your business sells to councils, the NHS, or any public body, the rules changed in a big way in 2025. A new law called the Procurement Act 2023 means buyers can now score bids not just on price, but on the wider good a company does — things like local jobs, training and community support.

In practice, three moments matter more than before: the conversations buyers have with suppliers before a contract is even advertised, how bids get scored, and what happens after you win. Bigger contracts (over £5 million) now have to publicly report on whether they actually delivered what they promised.

The market is already responding. More contracts are being advertised, more companies are winning them, and over 40,000 public contracts are due to be re-tendered in the next year. Good news for small businesses: research suggests SMEs are already ahead here, often over-delivering on social value thanks to their local ties and community connections. Source: Social Value Portal.

2. The cost-of-living crisis hasn't eased — it's deepened

You'd be forgiven for thinking the cost-of-living crisis had eased by now. New research from the Joseph Rowntree Foundation says it hasn't. Here's what they found, looking back over the last six months:

  1. 7.4 million low-income families couldn't afford essential items — the highest number since JRF started tracking this in 2021.
  2. 62% of low-income households couldn't afford at least one essential item.
  3. 5.6 million households went without food because they couldn't afford it, and nearly half of low-income families skipped meals or went hungry in the last month.
  4. 1.5 million households used a food bank.
  5. 2.4 million families couldn't keep their home warm enough, and 4.5 million households are behind on bills or debt repayments.
  6. 3.8 million households borrowed money just to cover essentials, including 1.3 million who used payday lenders or loan sharks.

This isn't only affecting the people you'd expect — more households who used to manage fine are struggling too. For local charities and food banks, help from businesses — volunteers, funding, spare skills — is often the difference between staying open and shutting down. That's why more people, from buyers to investors to your own staff, want to see that support properly counted, not just mentioned in a newsletter.

3. Staff volunteering is getting more serious

Company volunteering used to mean one slightly awkward day a year picking up litter as a team. That's changing. Businesses are moving towards volunteering that uses people's real skills, focuses on things like the environment, and gets tracked properly all year round — not just once. Some estimates suggest this could add around £33 billion to the UK economy if done well at scale.

Part of the reason for this shift is a bigger conversation about what someone's time is really worth. The "real Living Wage" — an independently calculated hourly rate based on the actual cost of living — is currently £13.45 an hour across the UK (£14.80 in London), and over 16,000 employers pay it voluntarily. Compare that to the legal minimum wage for over-21s, which is only £12.71 an hour from April 2026. Right now, 4.4 million UK workers — about 1 in 7 — are paid less than the real Living Wage.

That gap matters for how businesses value volunteering time, too. A flat, made-up number rarely reflects reality, and skilled, professional time is worth more than general labour. It's why CommonGood's own calculator treats standard volunteering, skilled volunteering and donated money as three separate things, rather than lumping them into one figure.

4. Why the South West is leading the way

Across the UK, social value is having a moment. Here in the South West, it's arguably already arrived.

  • More B Corps than almost anywhere else. B Corp is a certification for businesses that meet high standards on how they treat people, communities and the environment. The South West now has over 400 certified B Corps — more than any English region outside London. Simon Beer, director of local agency Bigwave Marketing, put it well: certification is "more than a certification – it's a framework that helps us make better decisions." Exeter in particular has become known for its cluster of B Corp marketing and creative agencies.
  • A dedicated way to reach local social enterprises. A programme called Buy Social West of England helps around 2,200 social enterprises across the West of England find customers, and trains councils and universities on how to buy from them.
  • Big growth plans to match. Regional leaders across Devon, Cornwall, Dorset, Somerset, Gloucestershire and Bristol have been promoting the South West's roughly £100 billion economic potential to investors. As that growth arrives, the new procurement rules mean how it's delivered will matter just as much as the money itself.

Put it all together, and the South West has an unusually large number of purpose-driven businesses, a proper way to connect them with buyers, and growth big enough to make social value matter.

5. What this means for South West SMEs

  1. Get ready for public contracts now. Even if you don't sell to the public sector today, over 40,000 contracts are coming up for renewal in the next year — and small businesses are already doing well under the new rules.
  2. Make it a habit, not a one-off. Regular volunteering or support beats a single away-day, both for your community and for how it looks to buyers.
  3. Actually measure what you do. A rough note of "hours volunteered" won't cut it for contract bids or funding applications anymore. You need a proper number — which is what tools like CommonGood are for.
  4. Support a local charity consistently. With so many households struggling, charities need reliable partners more than one-off gestures.
  5. Get involved locally. Groups like Buy Social West of England, the Black South West Network and the local B Corp community can offer introductions, advice, and often new customers too.

Frequently asked questions

What is social value? Social value is the good a business does beyond its main product or service — things like local jobs, sharing skills, supporting the community, or cutting environmental impact. It's been part of how the government buys things since 2012, and the rules around it just got a lot stronger.

Do small businesses have to report social value? Only businesses bidding for certain public contracts are legally required to. But more clients, banks and certifications like B Corp expect to see it anyway — which is why it helps to measure it properly, even if you're not chasing government work.

How much is a volunteering hour worth in the UK? There's no official figure. Most organisations use something like average earnings or the real Living Wage (£13.45 an hour in 2026) as a starting point, and pay more for specialist or professional time. CommonGood's calculator, for example, values ordinary volunteering, skilled volunteering and donations separately.

What is the Procurement Act 2023? It's the law that changed how the UK government and public bodies buy goods and services, starting in 2025. It means buyers can now score bids on their wider social and environmental impact, not just price — backed by new rules on transparency and reporting.

The bottom line

Government contracts are changing. Life is getting harder for a lot of people. And staff volunteering is becoming something businesses actually track, not just talk about. Put it together, and the message is simple: social value needs proof, not just good intentions — and the South West is in a strong position to lead on it. If you're a South West business wanting to turn your volunteering, giving and community work into a clear, credible number, that's exactly what CommonGood is for.

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