Partnering with the impact economy would unlock billions of pounds to address pressing social and environmental challenges such as child poverty, clean energy, and affordable housing, according to a report published today by the independent Social Impact Investment Advisory Group (SIIAG).
Partnering with the impact economy would unlock billions of pounds to address pressing social and environmental challenges such as child poverty, clean energy, and affordable housing, according to a report published today by the independent Social Impact Investment Advisory Group (SIIAG).
The report, Mobilising the impact economy as partners in national renewal, highlights the UK’s longstanding and thriving impact economy – a diverse ecosystem of purposeful organisations and capital, including social and institutional impact investors, philanthropic individuals and foundations, social enterprises, trading charities and purpose-driven businesses. Collectively, this ecosystem stewards £106 billion of UK impact capital, with at least £42 billion already aligned with Government priorities, making it a powerful engine for national renewal.
The Advisory Group, established in January 2025 by HM Treasury and the Department for Culture, Media and Sport (DCMS), worked with experts from across the UK to explore how government can better collaborate with the country’s growing impact economy.
In an environment where every pound of public funding must work harder, strategic partnership with the impact economy offers the opportunity to deliver national renewal and social impact at scale. Central to the report is the adoption of a ‘mobilisation mindset’, where government acts as a catalyst, using public funds and a co-design approach to attract private and philanthropic investment, share delivery and scale solutions that improve outcomes for people and places.
Key Recommendations
Pillar 1: Organising to Mobilise and Support the Impact Economy
Establishing sustained leadership at ministerial and senior civil service levels to champion the impact economy agenda, drive cross-government action and signal long-term commitment.
Creating an Office for the Impact Economy, a well-resourced hub to provide strategic leadership, coordinate across Government and provide a clear front door for philanthropists, impact investors and purpose-driven businesses that want to partner with Government to improve lives.
Pillar 2: Embedding the Mobilisation Mindset
Bringing together public, private and philanthropic capital – including through match funding, blended finance and social outcomes partnerships to deliver practical, innovative solutions – helping people live in homes and places they feel proud of, enjoy better health and good work, and give every child the best start in life, while strengthening communities across the UK.
Pillar 3: Unlocking Resources and Participation at Scale
Implementing targeted reforms to unlock more capital for social and environmental impact – clarifying fiduciary duties for pension schemes, modernising Gift Aid and legacy giving rules, integrating philanthropy and impact investment into wealth advice, and incentivising corporate purpose and giving – so every pound goes further in improving lives and strengthening communities and places across the UK.
The Social Impact Investment Advisory Group
The report builds on SIIAG’s previous work, which contributed to the creation of the £500 million Better Futures Fund, supporting vulnerable children and families through collaboration between Government, communities and impact investors. As the largest social outcomes partnership fund in the world, it demonstrates the potential for Government to act as a catalyst for long-term, systemic impact.
Dame Elizabeth Corley, Chair of SIIAG, and the Impact Investing Institute’s Chair Emerita explained that:
“Today’s report draws on the expertise of countless organisations across the country working in the impact economy. It is clear that the opportunity for the Government to partner with the impact economy is too big to ignore, with the potential to unlock billions and help address some of the biggest challenges facing the country. Our report outlines the steps the Government can take to work with the impact economy, to move from ad hoc projects to a system-wide partnership and deliver better outcomes and growth across the UK. The Government is to be commended for setting up the SIIAG to undertake this important work and we are looking forward to their continued partnership with the impact economy in the months ahead.”
Kieron Boyle OBE, Chair of the Impact Investing Institute and member of the SIIAG, added:
“The UK has long been a leader in the impact economy, from pioneering outcomes funds to building a world-class impact investment market. This report shows how government can build on that success, acting as the catalyst that brings business, investors and civil society together around shared goals. To meet the scale of the challenges ahead, we need to move from isolated innovation to a shared mobilisation of resources – aligning capital and capability behind shared priorities that matter to people, like inclusive local growth, better health and affordable housing.”
Other sector leaders, including Michele Giddens OBE (Bridges Fund Management), Stephen Muers (Better Society Capital), Neil Heslop (Charities Aid Foundation), and Alan Smith (Church Commissioners), welcomed the report, highlighting its potential to unlock capital and strengthen communities across the UK.
The Impact Investing Institute played a central role in shaping the report, practical support to the Advisory Group’s working groups and drafting the final report output. These groups brought together engaged representatives from across the impact economy, including those deploying capital as well as those receiving it, such as social enterprises, charities, and other purpose-driven businesses operating across the UK, regionally, and locally.