PIC at REiiF: Creating social value that lasts

As a leader in the growing pension risk transfer market, which collectively would like to invest up to £200 billion in UK housing and infrastructure over the next decade, Pension Insurance Corporation plc (“PIC”) is increasingly working with interested parties, including local and national government, to create the conditions that will allow us to invest more in Britain.These types of assets can provide the long-term, secure cashflows we need to pay the pensions of our current and future policyholders over coming decades. To date we have already invested more than £15 billion in these types of assets, so have considerable experience in this field.

Based on that experience, we think more developments would be approved if communities and local decision makers really benefit from them, or at least aren’t disadvantaged. In part, this means that those bringing forward well‑designed, well‑run projects have to take the initiative and describe in clear terms the benefit they will bring to local areas.

Done properly, social value isn’t a slogan; it is measurable, visible and real. It can arise during construction as well as during the operational phase. This includes the skilled jobs, apprenticeships, links with local educational establishments and rehabilitation programmes that are inherent to the construction phase. But it also can mean improved long-term health outcomes, stimulation for local economies, better transport connections, and new and better green spaces, that accrue to local areas during the operational phase of a development.

One part of the answer is to better define what social value actually means. We believe it is best described as the outcome of a company’s business model – for us, that means funding housing and infrastructure – as opposed to something more along the lines of Corporate Social Responsibility or impact investing type programmes.

A second part lies in standardising what is actually reported locally, so planning committees and others know what they are going to get. This could be, for example, a shared, practical framework that helps local authorities and communities judge whether a project genuinely improves the lives of local people. It also provides a clearer basis for local authorities to hold developers to account and to address legitimate local concerns, such as increased congestion or pressure on local services — countering the instinctive NIMBY response.

PIC has developed a standardised report which might serve as a good starting point for others, which we published in Citizen Gain. From the outset of every project, we quantify the social, economic and environmental impacts we expect to deliver. Our approach is based on long‑term outcomes – not least because we need the projects to be viable for many years. We are proud that our developments, such as Millers Quay in Wirral and New Vic in Manchester, show how this can work in practice — improving employment and education opportunities, expanding green space, building climate resilience, and providing new opportunities for local businesses.

Ultimately, however, social value outcomes must be shaped with the community to achieve genuine buy in. Development should be something done with local people, not to them.

Our report sets out practical steps to make this a reality. Social value needs a clear and shared definition. All stakeholders — government, local authorities, developers and investors — must align on what it means and embed that definition across governance, documentation and day‑to‑day processes. Social value has to be tailored to local needs. Every place is different, and social value should reflect the priorities of each community, shaped through meaningful engagement rather than imposed through rigid national templates. That requires reaching beyond the usual voices. A genuinely representative picture of what local people want can come from wider polling, focus groups, open consultations and better use of new data tools.

Delivering social value also relies on strong partnerships. No single organisation has all the answers, so local authorities should work closely with “anchor” institutions — major employers, universities and public bodies — to design and deliver outcomes that last. And throughout, everyone involved must take a long‑term view. Social value doesn’t end when construction does; it continues for decades. That means assessing, planning and committing to the benefits a project can deliver over the long run, not just in its early years.

The evidence from Citizen Gain is clear: when development starts with community priorities at the centre, projects secure more support, attract more investment and deliver benefits that last. If we are serious about getting Britain building again, embedding social value at every stage of the process isn’t just good practice — it is essential.