Targeting investment in social value

To maximize social value, the UK’s Department for Transport (DfT) is developing a strategy to target funding opportunities and demonstrate community value. Looking at policies and Train Operating Companies (TOC) contracts across the business, we supported DfT’s Passenger Services division in creating a Social Value Policy Framework. This will help inform and prioritize policies in support of social value to boost economic opportunities, improve passenger experiences and increase sustainability.

What is social value?

First, we looked at what social value, or the quantification of contribution to the long-term wellbeing and resilience of individuals, communities, and society in general, means for train operators. This includes:

• Their services, interaction, and delivery of the contract

• Their operation as a company

• How they develop and empower their staff.

Setting a social value roadmap

Following an extensive literature and best practice review of social value in the rail and other relevant sectors, we engaged with subject matter experts and key external stakeholders to help define the level of ambition and different perspectives on what good looks like. Workshops were established to agree a roadmap to achieve the desired policy outcomes and trade-offs in five key areas.

Five key social value areas:

• Community impact and levelling up

• Workforce skills and equity, diversity and inclusion (ED&I)

• Economic growth

• Accessibility

• Environment and climate change.

Community perspective

Considered from the perspective of those affected, social value must be assessed in respect to the relative importance that people place on the changes they experience in their lives. In developing the social value policy framework, we struck a balance between aligning to the existing and successful approach achieved to date in contracts, addressing the more ambitious policy landscape and reflecting the challenging position of public finances, particularly those of the rail sector.

To help DfT outline clear opportunities in line with its levelling up agenda of balanced economic growth, and target investment, we defined and identified deprived urban regions with little accessibility. Policy notes were created to guide DfT employees when considering investments and contracting services.

The new framework ensures compliance with the UK Social Value Act, while providing clarity on the overall definition, level of ambition and priorities to support government plans to provide moral, social, environmental and economic improvements to regions that need it most.