Social Partnership and Public Procurement (Wales) Act 2023

The Social Partnership and Public Procurement (Wales) Act 2023 received Royal Assent on 21 June 2023 and represents a significant step in the Welsh Government's ambition to use public procurement as a lever for delivering social and economic outcomes. It creates new statutory obligations on Welsh public bodies that go beyond those applying elsewhere in the UK.

What is the Social Partnership and Public Procurement (Wales) Act 2023?

The Act has two main components. The first establishes a statutory social partnership framework for Wales, requiring public bodies to work with trade unions and workers' representatives when making significant decisions, including decisions about procurement. This embeds worker voice into the procurement process in a way that is unique in UK legislation.

The second component introduces a procurement well-being duty. Public bodies in Wales with a procurement spend above a defined threshold must ensure that their procurement activity seeks to improve the economic, social, environmental, and cultural well-being of Wales, in line with the goals set out in the Well-being of Future Generations (Wales) Act 2015. This means that Welsh contracting authorities must actively consider how procurement contributes to the seven well-being goals defined under that Act, including a more equal Wales, a resilient Wales, and a globally responsible Wales.

The Act operates alongside the Public Contracts Regulations 2015 (and its successor the Procurement Act 2023 for England, Wales, and Northern Ireland), supplementing the procedural requirements with a substantive duty to pursue well-being outcomes. It also sits alongside the Public Services (Social Value) Act 2012, which provides a broader UK framework for social value consideration in procurement.

Welsh public bodies subject to the Act must publish annual reports on how they have fulfilled the procurement well-being duty, creating accountability and transparency. The Act empowers the Welsh Ministers to issue statutory guidance on how the duty should be discharged, and public bodies must have regard to that guidance.

Why it matters for bidders

Suppliers targeting Welsh public sector contracts must understand that buyers in Wales are operating under a distinctive legal duty to pursue well-being outcomes. This means that social, environmental, and economic criteria are not simply optional evaluation considerations: they are legally required elements of the procurement strategy. A well-prepared bidder will demonstrate clearly how their offer contributes to the well-being goals relevant to the contract.

The social partnership dimension also signals that Welsh buyers will be attentive to fair work practices, including trade union recognition, fair pay, and worker engagement in the supply chain. Bidders who can demonstrate genuine commitments on these fronts will be better placed in the Welsh market.

Example

A construction company bids for a social housing development contract let by a Welsh local authority. The authority is subject to the procurement well-being duty and has included a social value assessment worth 20% of the total evaluation score. The criteria focus on the well-being goals of a more equal Wales (measured by local employment and apprenticeship commitments) and a globally responsible Wales (measured by supply chain sustainability and carbon reduction plans). The company structures its bid around these goals, drawing on its existing community employment programme and its pathway to net-zero construction practices.

Frequently Asked Questions

Does the Social Partnership and Public Procurement (Wales) Act 2023 replace PCR 2015 in Wales?

No. PCR 2015 (and the Procurement Act 2023, which will apply to Wales as it does to England and Northern Ireland) continues to govern the procedural requirements for above-threshold procurement. The 2023 Act supplements the procedural framework by adding a substantive well-being duty and social partnership obligations. Both instruments apply simultaneously to Welsh contracting authorities.

What is the social partnership requirement in practice?

Public bodies covered by the Act must have regard to workers' representatives and recognised trade unions when making significant strategic decisions, including decisions about procurement strategy. In practice, this may mean consulting with unions before finalising a major procurement strategy, or including worker representatives in the development of social value criteria for large contracts. The precise form of engagement is guided by Welsh Government statutory guidance.

How does this compare to the Procurement Reform (Scotland) Act 2014?

Both the Scottish and Welsh frameworks go significantly beyond the minimum requirements of PCR 2015, using procurement as a vehicle for delivering social and economic policy goals. The Scottish approach is older and more mature in practice, with established community benefit reporting. The Welsh Act is distinctive in its explicit social partnership mechanism and its linkage to the Well-being of Future Generations Act framework, making the sustainability goals more legally embedded than in Scotland.