Social Value Measures: Social (proxy) Impact Values explained
What are the social impact values?
The social impact values (also known as proxy values) are monetary values used across all social value measures to show the benefit created by social, economic and environmental outcomes in a clear and consistent way through pounds and pence. It is Not the costs to an organisation (supplier or contractor) of supporting social value. The values simply estimate the positive difference each measure makes for people, communities, or our wider society.
Where do they come from?
The outlined impact values are based on UK research and evidence that looks at the value of better outcomes for people and the environment. They are underpinned by government data and co-created by social scientists and stakeholders in the Public and Private Sectors.
How were they were developed?
Each impact value represents the pounds (sterling) value of an improvement in outcomes, such as better wellbeing, improved job prospects, or environmental benefits. This is worked out using approaches such as:
- Wellbeing valuation, which links improvements in quality of life to a £ value
- Cost avoidance, estimating where better outcomes reduce pressure on public services
- Long-term value modelling, looking at benefits over time
These values have been standardised by an external organisation so impact can be measured in the same way and added up across different projects and contracts.
What do they mean in practice?
A social impact value shows the estimated saved cost of the benefit created when a measure is achieved. In other words, it is the money the government has saved as a result of the outreach (e.g. by hiring a prison leaver, this will reduce risks of reoffending which would ultimately save the government X amount of money).
This helps organisations show the real value of the impact they create, rather than just reporting how much they spent or how many activities they delivered.
