New Philanthropy Capital (NPC) has published Impact UK, which for the first time estimates the scale, scope, and power of the UK’s impact economy – contributing £428 billion in gross value added to the UK economy as a whole and, at 15% of UK GDP, one of the most significant sectors in the economy.
The report, with contributions from leaders across the impact economy, highlights the scale, vibrancy and diversity of the organisations that form it, and compares it to other significant economies, such as the creative and manufacturing sectors.
Jonathan Simmons, CEO of NPC and one of the report authors, said:
“The UK has a powerful engine for positive change at the core of its economy, which we should be so proud of. Millions of people and organisations, everyday, focused on positively impacting our society. By recognising the impact economy as a dynamic, significant part of our country, we are celebrating the charities, businesses and others bound together by an intention to make a positive difference.
At a time when the challenges we face appear significant we wanted to highlight the people who choose to devote money, time and expertise to creating a positive impact, and invite others to join in.”
The report echoes other reports and trends, pointing to a real opportunity to grow the impact economy. We highlight how businesses that consider themselves impact-led have grown threefold over the last decade as evidence of a rapidly strengthening movement, and we tell the stories of ten philanthropists committed to the impact economy. Impact UK builds on previous NPC research last year that giving by high net-worth individuals has grown by an average of 18% a year since 2020.
The analysis brings together all parts of the impact economy, defined as an ecosystem of individuals, organisations and capital prioritising public benefit over private gain. It includes both the regulated impact economy – charities, universities, community benefit societies, trade unions, housing associations, political parties and Community Interest Companies – and the self-regulated impact economy of mission-led and impact-oriented businesses, friendly societies, mutual insurers and credit unions.
Amanda Powell Smith, CEO of Forster Communications, one of the sponsors of the report, said:
“I’m immensely proud to be part of the impact economy and incredibly excited about what it could achieve if we can ditch the different labels we wear and come together to radically increase the impact we can make on the big challenges we are facing.”
Momentum behind the impact economy is growing, with developments such as the creation of the Office for the Impact Economy and increased attention across academia, policymakers and investors. NPC explains that now is the moment to build on this progress, deepen understanding and encourage more people to contribute, participate and invest so the impact economy can grow and deliver even greater public benefit.
James Perry, Co‑Founder of COOK and Co‑Chair of B Lab UK, said:
“This report shows that the impact economy is a major economic force shaping the future of the UK for the better. Its scale demonstrates what happens when purpose-driven organisations, investors and communities pull in the same direction. If we continue to accelerate this momentum, the UK has the opportunity to lead the world in building an economy that creates value for people and planet.”
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