A new report from New Philanthropy Capital (NPC) estimates that the UK’s impact economy contributes £428 billion in gross value added, equivalent to around 15% of national GDP. The analysis, published as Impact UK, is the first attempt to quantify the full scale of economic activity driven by organisations and individuals that prioritise public benefit over private gain.
The report brings together data and insight from across what NPC defines as the impact economy, covering a wide range of organisational forms and sectors. It positions the impact economy as one of the UK’s largest economic forces, comparable in size to established sectors such as manufacturing and the creative industries.
Impact UK defines the impact economy as an ecosystem of people, organisations and capital with an explicit intention to deliver positive outcomes for society. This includes both regulated and self regulated activity. On the regulated side, the report counts charities, universities, community benefit societies, trade unions, housing associations, political parties and Community Interest Companies. It also includes mission led and impact oriented businesses, mutual insurers, friendly societies and credit unions that operate under self regulation.
According to NPC, bringing these elements together offers a clearer picture of how deeply embedded impact focused activity is within the wider economy. The report argues that while individual parts of this ecosystem are often analysed in isolation, their combined contribution has not previously been measured in a consistent way.
Jonathan Simmons, chief executive of NPC and one of the report’s authors, said the findings show that impact is not a marginal or niche activity, but a core feature of economic life in the UK.
“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.”
Alongside headline figures, Impact UK draws on contributions from leaders across philanthropy, business and civil society to illustrate the diversity of the organisations involved. The report includes profiles and case material to show how impact focused activity spans sectors ranging from finance and housing to health, education and employment.
NPC links its findings to wider trends that suggest the impact economy has been growing rapidly over the past decade. The report notes that the number of businesses identifying as impact led has tripled over that period, pointing to what it describes as a strengthening movement rather than a static group of organisations.
The publication also builds on earlier NPC research into philanthropy. Last year, NPC reported that giving by high net worth individuals had grown by an average of 18% a year since 2020. Impact UK extends this analysis by examining how philanthropic capital interacts with charities, social enterprises and mission driven firms as part of a broader economic system.
Ten philanthropists are profiled in the report, each described as committing significant resources to impact focused activity. NPC presents these examples as evidence of how private capital is increasingly being directed towards public benefit aims, often alongside more traditional commercial investment.
The report comes at a time of growing policy interest in impact focused activity. NPC points to recent developments such as the creation of the Office for the Impact Economy, alongside rising attention from academic researchers, policymakers and investors. According to the authors, this interest reflects a shift in how economic value is being understood and assessed.
Amanda Powell Smith, chief executive of Forster Communications, one of the sponsors of the report, said the findings underline the need for greater alignment across the sector.
“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.”
NPC argues that clearer recognition of the impact economy could help remove some of the fragmentation that currently exists. The report suggests that shared language and data could make it easier for organisations to collaborate, attract investment and engage with policymakers.
James Perry, co founder of COOK and co chair of B Lab UK, said the scale identified in the report shows what is possible when organisations align around purpose.
“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.”
Impact UK does not claim that growth in the impact economy is guaranteed. Instead, NPC frames the report as a baseline that can support better decision making and public debate. The authors argue that deeper understanding of the sector’s size and composition is a first step towards encouraging more participation and investment.
NPC says the timing is critical. With economic pressures, social inequality and environmental stress all shaping the policy agenda, the report suggests that recognising the role of the impact economy could help channel resources towards activities that deliver public benefit alongside economic output.
Impact UK is available from New Philanthropy Capital, with further information and updates available through NPC’s website and mailing list.
