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UK to double job-creation weighting in public contract procurement
The Cabinet Office said the social benefits score for contracts worth £5m or more will shift from 10% to 20%, with the added weight tied to creating jobs and 45-day work experience placements.
The UK government plans to overhaul how firms are scored when bidding for public contracts, with new requirements aimed at reducing youth unemployment, according to BBC Business.
Under the changes, the weighting given to bidders for delivering benefits to local communities will be doubled from 10% to 20% for contracts worth £5m or more, the Cabinet Office said, and the 20% measure will be based on job creation rather than prior categories including net zero and post-Covid recovery measures.
Companies will be awarded extra credit for creating local jobs that pay above the minimum wage, for plugging local skills gaps through training, and for providing 45-day work experience placements for young people, as the government seeks to address issues highlighted by Office for National Statistics data showing more than a million people aged 16 to 24 are not in education, employment, or training.
Green groups criticized the shift, arguing support for young people should not come at the expense of environmental goals, while the government says contractors should give back by creating more local jobs and opportunities for young people in their areas.