Impact UK: The Size and Story of Our Impact Economy
Today, New Philanthropy Capital (NPC), a partner in the Impact Economy Collective, published Impact UK, a landmark report that maps, for the first time, the full scale and scope of the UK's impact economy. The findings are striking: the impact of the economy contributes an estimated £428 billion in gross value added to the UK economy, representing approximately 15 per cent of GDP.
This is a significant moment. For too long, the organisations and individuals who choose to prioritise public benefit, whether charities, social enterprises, impact investors, housing associations or purpose-driven businesses, have been understood in isolation from one another. NPC's report reframes them as part of a coherent, interconnected system bound by a shared intention to create positive change.
What the report tells us
The report distinguishes between two segments of the impact economy. The regulated impact economy, comprising organisations that are legally structured to deliver societal benefit, accounts for £105 billion in gross value added. This includes registered charities, higher education institutions, housing associations, community interest companies and others. The self-regulated impact economy, made up of impact-led businesses that voluntarily orient themselves towards public purpose, accounts for a further £323 billion.
Taken together, this positions the impact economy as a major force within the UK's broader economic landscape, comparable in scale to some of the country's most recognised sectors.
Why this matters for the Collective
The publication of Impact UK arrives at a moment of growing momentum. The Government's establishment of the Office for the Impact Economy within the Cabinet Office, its recognition of the sector in the Industrial Strategy, and cross-party engagement through the Social Impact Investment Advisory Group all signal a new willingness to partner with the impact economy to deliver on national priorities.
The Impact Economy Collective exists precisely to support this partnership. The Collective brings together leading organisations across philanthropy, impact investing and purpose-driven business to work alongside government. Through our Policy Labs, place-based investment research, cross-sector engagement, and project implementation, we are helping to further scale the impact NPC has now quantified and align it with government and public priorities.
As NPC's Chief Executive Jonathan Simmons observed, the report reflects a shift in mindset: from a set of disparate sectors to a unified system with shared aspirations. That is a shift the Collective has been advocating for since its inception; seeing it evidenced at this scale is both affirming and energising.
What comes next
Data alone does not drive change; partnership does. The Collective's work, from co-designing blended finance models in the early years to supporting place-based initiatives with MHCLG, demonstrates what becomes possible when the impact economy works together with government, local leaders and communities.
Impact UK gives us the evidence base. The task now is to ensure that these organisations, and the capital and expertise they represent, are fully mobilised to help tackle the UK's most pressing challenges, from child poverty and health inequalities to economic inactivity and community renewal.
We welcome NPC's contribution and encourage everyone working across the impact economy to read the report and consider how, together, we can build on this foundation.
