1. What is Social Value?

Social Value is a concept used by the UK government to measure the broader non-financial impacts of programs, policies, and projects. It represents the net benefit to society when all costs and benefits are accounted for.

2. How Does the Calculator Work?

The calculator uses the simple Social Value formula:

Where:

• \( Benefits \) — Total quantified benefits in GBP
• \( Costs \) — Total implementation costs in GBP

Explanation: The equation calculates the net value created for society by subtracting all costs from all benefits.

3. Importance of Social Value Calculation

Details: The UK government requires Social Value to be considered in procurement decisions to ensure public money creates maximum benefit for communities.

4. Using the Calculator

Tips: Enter all benefits and costs in GBP. Values should include both direct and indirect impacts where quantifiable.

5. Frequently Asked Questions (FAQ)

Q1: What types of benefits should be included?
A: Include both financial benefits and monetized social benefits like improved health outcomes, reduced crime, or environmental benefits.

Q2: How should costs be calculated?
A: Include all direct implementation costs plus any negative externalities that can be quantified.

Q3: What is a good Social Value ratio?
A: The UK government typically looks for at least £2 of social value for every £1 spent, though this varies by sector.

Q4: Are there standard conversion factors?
A: Yes, the UK government provides Treasury Green Book guidance for converting various outcomes to monetary values.

Q5: How does this differ from ROI?
A: Social Value considers broader societal impacts beyond just financial returns to investors or government.