A responsible capitalism measure requiring councils and other public bodies to take into account wider social value, and not just cost, in awarding contracts is set to become law.

In a rare example of a private member's bill reaching the statute book, the Public Services Social Value Bill is due to complete its final passage in the Lords on Tuesday. It could radically alter the way taxpayer's money is spent, especially in the awarding of public service contracts to private companies, a controversial issue after the allegations of fraud at the welfare-to-work firm A4e.