Downing Street has created an Office for the Impact Economy, a Cabinet Office unit led by the Chief Secretary to the Prime Minister, to act as a single entry point for businesses, social investors and philanthropists. The initiative was launched at No 10 on 11 November with stakeholders from across the country.
Government and the advisory group define the impact economy as capital deployed for social or environmental outcomes alongside financial returns. The advisory group estimates it stewards around £106 billion in UK assets, with the new Office intended to cut duplication for applicants and route money to the right places faster.
Operationally, the unit will coordinate with the Department for Culture, Media and Sport, HM Treasury, the No 10 Partnerships Unit, the Office for Investment, the devolved governments and the Department for Business and Trade. The Office for Investment is a joint unit of HM Treasury, the Department for Business and Trade and No 10, set up to secure high‑impact investment across the UK.
Ministerial oversight sits with Darren Jones, appointed Chief Secretary to the Prime Minister in September 2025, while James Murray serves as Chief Secretary to the Treasury. Both roles formed part of a reorganisation to bolster cross‑government delivery.
The launch is a direct response to the Social Impact Investment Advisory Group’s final report. SIIAG was established in January 2025 by HM Treasury and DCMS and chaired by Dame Elizabeth Corley to advise on partnering with investors and philanthropists and to shape impact investment vehicles.
The Office will sit alongside the Better Futures Fund, a £500 million, ten‑year outcomes programme that government describes as the largest of its kind globally, aiming to support up to 200,000 children and families. Plans include drawing further contributions from local government, social investors and philanthropists to increase the total envelope.
Timetables are phased. DCMS has told Parliament it expects to publish detailed policy guidance for the Better Futures Fund in 2026, with eligibility and evaluation still in development. Bids will be commissioned on an outcomes basis, with payments released only when agreed metrics are met.
On 20 October 2025, Legal & General announced a £2 billion commitment to impact investment by 2030, targeted at housing, infrastructure and regeneration. The programme aligns with efforts to channel long‑term pension capital into UK projects and places.
For councils and VCSE organisations, the unit is intended to make engagement with Whitehall more straightforward and to link place‑based plans to national programmes such as the Better Futures Fund. Commissioning teams should assemble robust baselines, data‑sharing protocols and evaluation plans to support outcomes contracts.
For investors, philanthropists and foundations, a clearer route into government is expected, with the Office for Investment positioned to work with large pools of capital and support departmental deal flow. The new Office is designed to match opportunities to national priorities and structure co‑funding where appropriate.
Definitions are broad. The advisory group’s framing spans institutional impact investment, philanthropy and blended finance. It estimates at least £42 billion is already aligned to priorities such as affordable housing, clean energy and good jobs, indicating significant capacity to scale.
Ministers say the unit will be developed with sector organisations over the coming months. The Autumn Budget is scheduled for 26 November 2025, providing the fiscal context for early operational announcements and resourcing decisions tied to outcomes‑based programmes.