Government announces Office for Impact Economy

Government announces Office for Impact Economy 

In a bid to bridge public policy and private philanthropy, the UK Government has announced the formation of a new Office for the Impact Economy ('the Office'), led by Chief Secretary to the Prime Minister, Darren Jones MP.

The Office will serve as a single, central point of contact for impact investors, philanthropists and purpose-driven businesses wanting to engage with the Government.   The Government intends to simplify the hurdles that have historically made it challenging to co-ordinate cross-sector social investment.

The announcement follows the November 2025 publication of the Social Impact Investment Advisory Group (SIIAG)'s report which recommended the establishment of a centralised office to drive collaboration with the impact sector.  SIIAG convened in February 2025 and included senior figures from finance, philanthropy, social enterprise and public service.

The Office's functions will include:

• Co-ordinating cross-government strategy, acting as a 'hub' for different departments (e.g., Business and Trade).
• Building capability by helping local and national government, as well as communities to partner effectively with impact investors.
• Enabling partnerships, such as co-investment initiatives to channel private and philanthropic capital into high-impact public projects.

The SIIAG report estimates the UK's impact economy, combining social investors, philanthropic capital, and purpose-led businesses, to be worth around £106 billion, with at least £42 billion aligned to government priorities like affordable housing, green energy, and social infrastructure.

The government's plans were praised across the sector.