2 September 2025
Setting the Standard for the UK? The Welsh Government's Drive For Social Value
Written by: Abbey Jones
"In Wales, well-being isn’t a buzzword, it’s the law." [1]. With a small but connected population, a distinctive language and culture, plus legislative agility, the Welsh government has been able to make strides in social value policy, measurement and delivery. The legislation has proven so effective that it has resonated with governments across the world, with countries like New Zealand, Japan and Canada currently drafting their own versions of Wales’ ‘Future Generations’ approach [2]. With its proven positive social impacts, this provides a huge opportunity for the UK government to learn from the valuable precedent the Welsh government has set.
Despite its prosperous manufacturing, farming and tourism industries, Wales has high levels of child poverty and low levels of social mobility. One in three children grows up in poverty, and by GCSE level, disadvantaged students are, on average, 18 months behind their peers [3]. With its unique farming practices, populous coastal communities and tourism businesses, Wales is also particularly vulnerable to the unpredictable nature of climate change and global warming, which in turn, has a huge social impact.
To address these concerns, the Welsh government has used its devolved powers to introduce two key pieces of legislation that work together to improve social sustainability across Wales:
The Well-being of Future Generations (Wales) Act 2015 [4]
The Social Partnership and Public Procurement (Wales) Act 2023 [5]
The approach, beginning in 2015 with the Future Generations Act, calls for a new mindset and gives residents the ambition, permission and legal obligation to improve the social, cultural, environmental and economic well-being across the country. The Social Partnership and Public Procurement Act cements these goals Wales by ensuring all public procurement in Wales delivers positive social, economic, and environmental outcomes, aligning with the WBFGA's goals [6].
The Well-being of Future Generations (Wales) Act 2015
The Welsh Government introduced the Well-being of Future Generations Act to fundamentally change how public bodies operate, shifting the focus from short-term gains to long-term well-being for both current and future generations. The Act mandates that public bodies consider the sustainable development principle, meaning they must act in a way that improves the social, economic, environmental, and cultural well-being of Wales, without compromising the ability of future generations to meet their own needs.
The Act sets out five ways of working (such as collaboration and integration) needed for public bodies to achieve the Act's seven well-being goals (including, for example, prosperous, resilient and equal). This approach provides an opportunity for innovative thinking, reflecting the way we live our lives and what we expect of our public services.
The Social Partnership and Public Procurement (Wales) Act 2023
The Social Partnership and Public Procurement (Wales) Act 2023 aims to enhance public services and improve wellbeing in Wales by promoting social partnership working, fair work practices, and socially responsible public procurement [7].
To establish 'social partnership,' the bill includes a statutory duty on certain public bodies to seek consensus or compromise with their recognised trade unions, or other staff representatives, when setting and delivering their well-being objective [8]. The bill also made provisions to set up a Social Partnership Council through which Welsh Ministers can consult social partners, employers and worker representatives when delivering their wellbeing objectives [9].
Whilst it is too early to say what the impact of this bill will be, it is a landmark piece of legislation that “puts the voice of workers at the heart of decision-making in Wales” [10] for the first time. By sharing information and establishing a shared vision, this law creates "a principle and a duty around social partnership, rather than the ad hoc or sector-specific commitment that previously existed." [11]
Measuring the Impact
To measure the social value of these laws, the Senedd has published a Welsh Themes, Outcomes and Measures (TOM) System - a bespoke framework designed to help public sector organisations measure and report on their contribution [12]. The Welsh TOM system is a bespoke tool based on the unique priorities of Wales and the goals of the Future Generation Act.
In July this year, the Senedd announced a further initiative to improve social value reporting across the country. This includes:
Piloting a centralised reporting platform for all public bodies in Wales
Providing all public bodies access to the TOM System to enable consistent and transparent reporting
Developing tools for benchmarking and insights to inform policy and drive continuous improvement
The initiative will enable the Welsh Government to evidence how public procurement is delivering meaningful impact, with a unified standard of measuring community impact across all public bodies. [13]
Taking the Next Step
Whilst this represents a significant step forward, there remains an opportunity for the Welsh (and UK) government to further enhance their measurement of social impact. The Welsh TOMs framework will allow public bodies to primarily measure the social value of their outputs. However, the true value of impact lies in understanding the outcomes experienced by people. Changes in people's health, feelings of isolation, and wellbeing at work, are factors that directly impact individual wellbeing and costs to society. At RealWorth, we specialise in measuring these kinds of outcomes to capture the real difference that policies and programmes make in people's lives. By setting a focus on these tangible life changes, the Welsh Government can further lead the way in social value measurement.
Wales is certainly leading the way in demonstrating the benefit of a unified approach - from a shared vision to a unified measurement framework, the Senedd's legislative programme has put community well-being at the heart of procurement and policy.
Inspiring countries around the world, the Welsh government's approach has demonstrated the art of the possible in improving community well-being without compromising the ability of future generations to meet their own needs. This is an active trend across many countries, public bodies and businesses alike. Paul Polman (former CEO of Unilever and social impact commentator) said: “Businesses cannot succeed in societies that fail" and businesses are waking up to the fact that their success is tied to the health of the communities they serve [14]. This suggests a global trend towards policy (both in terms of legislation and business policies) that prioritises social value and community well-being, in addition to simple financial profit.
Wales is setting a powerful example in creating a more equal society through its pioneering social value legislation, which will have positive benefits for years to come. At RealWorth, we see enormous potential for the UK Parliament to follow its devolved counterpart, and are excited at the prospect of similar transformative legislation being adopted.
Sources and Links:
[1]https://futuregenerations.wales/explore/impact/
[5]https://www.gov.wales/social-partnership-and-public-procurement-wales-act
[10]https://www.lrd.org.uk/free-read/can-wales-new-partnership-legislation-strengthen-workers-voice
[11]https://www.lrd.org.uk/free-read/can-wales-new-partnership-legislation-strengthen-workers-voice