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The Government has announced that businesses bidding for public contracts will be judged on their commitment to creating high-quality jobs, tackling local skills shortages and supporting young people into apprenticeships and work placements.
This follows the JIB’s sustained engagement with Government departments, advocating for procurement processes which shift the focus – from lowest initial cost to delivering better outcomes. JIB has encouraged policies which support fair work, direct employment, investment in apprenticeships and recognised competence frameworks. This has involved working with the Cabinet Office, Department for Energy Security & Net Zero (DESNZ), the Department for Business and Trade (DBT), the Department for Education (DFE), Skills England and the Welsh Government – as well as MPs and other stakeholders.
Skills-led social value
Together with a cross-sector group of construction and built environment leaders, JIB wrote to the Government’s Procurement and Construction Ministers in January 2026, calling for changes which:
JIB shared its belief that the way contracts are specified has a direct impact on skills investment, employment practice, competence and long-term productivity. This makes procurement one of the strongest levers the Government has to influence behaviour.
When central Government departments are considering bids for contracts worth £5m or more, the benefit to the local community is currently weighted at 10% of the decision-making process. The announcement states this will increase to 20% from January 2027. Bidders can get extra credit for creating local jobs paying above the legal minimum wage and by offering training opportunities.
Fair employment practices
The JIB is pleased to see the Government responding to its call for measures which encourage investment in workforce competence, training, apprenticeships and fair employment practices. The proposed refocusing of social value towards jobs, pay and skills is a positive step and offers an opportunity to move away from broad, difficult-to-measure commitments towards outcomes that have a tangible impact on workers, employers and local economies. The awarding of extra credit in tenders to recognise companies committed to fair work and decent employment terms, such as under collective agreements, is encouraging.
JIB hopes that it will see greater use of existing industry assurance mechanisms which provide independent evidence of competence, workforce standards and employment practices.
JIB members are more likely to invest in apprenticeships, and their completion rates stand at 74% – compared to the national average of 58%. The JIB model also recognises direct employment, workforce welfare and competence requirements, presenting a successful sectoral agreement which aligns with the Government’s procurement aims.
Andy Reakes, Acting CEO at the JIB, responded to the announcement:
“This is a significant step forward in recognising the role that public procurement can play in shaping a more skilled, competent and productive workforce. The JIB, ECA and Unite have consistently argued that procurement should seek to secure long-term value for taxpayers.
“We welcome the Government’s decision to place greater emphasis on jobs, pay and skills, alongside simplifying requirements for smaller businesses. Employers who invest in apprenticeships, fair employment practices and good workforce welfare, including under relevant sectoral agreements like the JIB’s, should be recognised as meeting many of these outcomes.
“JIB member companies already demonstrate what good looks like and show how sustained investment in people delivers better outcomes for individuals, employers and the wider economy.
“I thank Minister Ferguson and the team at the Cabinet Office for the engagement and agreement to work with us and industry to ensure the intention of this announcement is met in practice.”
JIB, Electrical Contractors’ Association (ECA) and Unite the Union will continue to engage with Government and act to bring forward representation from across the wider construction and built environment sector.
Read more on the letter to Government’s Procurement and Construction Ministers here.
More detail on the Government announcement is available here
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