Updates to the Social Partnership and Public Procurement (Wales) Act 2023 in 2026

The Social Partnership and Public Procurement (Wales) Act 2023 (SPPPA), discussed in our recent article, embeds social partnership, fair work, and well-being considerations into procurement activity, moving these principles from policy aspiration to statutory obligation.

The SPPPA applies to a range of Welsh public bodies and ensures public procurement supports not only value for money, but also wider social, economic, environmental and cultural well-being. The SPPPA has been commenced in stages, supported by guidance, codes of practice, model clauses and secondary legislation.

Recent changes

The Social Partnership and Public Procurement (Wales) Act 2023 (Commencement No. 4) Order 2025 brings the remaining provisions of the SPPPA into force, moving from framework duties to operational requirements. Key areas coming into effect from 25 March 2026 include:

• Socially responsible procurement duties: Including setting objectives for major construction contracts and outsourced services contracts, and applying the social public works clauses in subcontracts.
• Governance and accountability: Requirements for notifying Welsh Ministers when clauses are not used, and ensuring Welsh Ministers publish statements about major contracts.
• Procurement strategies and reporting: Contracting authorities must publish strategies and maintain contract registers.
• Oversight powers: Welsh Ministers may investigate procurement activities.

From 1 April 2026, there will be requirements for:

• contracting authorities to publish annual socially responsible procurement reports for prescribed contracts; and
• Welsh Ministers to produce an annual report on public procurement in Wales.

What this means in practice

The commencement of these provisions will bring more structure and potential scrutiny to public procurement in Wales. Key practical impacts include:

• Procurement planning: Strategies will need to explicitly reference socially responsible procurement objectives, including fair work and well-being considerations.
• Contract drafting and management: Social public works clauses and social public workforce clauses will be more widely used, and authorities will need to monitor compliance in subcontracts.
• Reporting and transparency: Authorities will need robust systems to record decisions and public annual reports, creating clear audit trails.
• Challenge risk: Suppliers and third parties may scrutinise whether social partnership duties have been applied correctly, particularly in relation to evaluations and reporting.
• Supplier considerations: Suppliers should be ready to demonstrate compliance with fair work and social objectives, especially when bidding for major construction or outsourced services contracts.

Embedding these requirements early into procurement processes, templates, and evaluation approaches will help authorities manage risk and demonstrate compliance.

Supporting guidance and consultations

Welsh Government has published a series of consultations and draft materials to support implementation, including:

• Draft guidance on applying the SPPPA’s duties in practice, including socially responsible procurement and reporting requirements.
• Model social public works clauses for inclusion in major construction contracts.
• Draft public services outsourcing and workforce code and model clauses to guide authorities in outsourcing public service contracts.
• Draft regulations covering definitions of prescribed/registrable contracts and required reporting information.

Final thoughts

The Commencement No. 4 Order, together with the accompanying consultations, demonstrates that socially responsible procurement in Wales is becoming increasingly structured, documented and enforceable.

Contracting authorities and suppliers should ensure they are monitoring commencement dates, guidance, codes and model clauses, and preparing to embed these requirements into their procurement strategies, evaluation and contract management processes.

Nicola Cullen is an Associate at Capital Law.