The UK’s Impact Economy: A Force for Good – and Worth £428 Billion

A new report from think tank New Philanthropy Capital (NPC) has revealed something exciting and important about how the UK’s charities, social enterprises, purpose-driven businesses and philanthropists contribute to our society. The Impact UK report shows that this “impact economy” is not a small part of the UK economy – it’s a major force that makes a real difference to people’s lives.

What is the Impact Economy?

The impact economy is all the organisations and people who choose to put public good before private profit. This includes charities, social enterprises, mission-led businesses and investors who care about people, the planet and communities as much as financial success. It’s about intention as much as outcome – doing work that means something for society.

A Big Contribution to the UK

One of the headline findings of the Impact UK report is the sheer size of the impact economy:

It contributes £428 billion to the UK economy every year – that’s about 15% of the entire UK’s GDP.

This means that organisations focused on social good are not just “nice to have” — they are a significant economic force alongside sectors like manufacturing or the creative industries.

Who’s Involved?

The report shows that the impact economy is broad and diverse:

• Charities contribute billions through the work they do in communities across the UK.
• Housing associations and community interest companies play an important role too.
• Most of the contribution comes from impact-led businesses, not just traditional social organisations.

When we see the impact economy as a connected whole, rather than lots of separate parts, it helps us appreciate how much good is already being done and how much potential there is to do more together.

Stories Behind the Numbers

To bring the data to life, the report includes inspiring stories of philanthropists and organisations making a difference – from supporting young people and environmental causes to tackling inequality and improving wellbeing. These examples bring home that impact isn’t just an idea — it’s real people creating real change.

Why It Matters for Communities

The Impact UK report helps us see that:

• Social purpose and economic success can go hand-in-hand.
• Working together across sectors unlocks new opportunities for impact.
• Understanding and measuring impact helps organisations attract investment, improve services, and ultimately help more people.

For groups like ours here in Norfolk — where community action is at the heart of what we do — recognising the value of the impact economy strengthens our work and shows that community efforts contribute not just to wellbeing, but to the national economy too.

A Growing Movement

The report is also a call to recognise and grow this movement. It shows that many organisations, big and small, are part of a shared mission. Whether you’re a charity, a social enterprise, a supporter, or someone who gives time, money or expertise; you are part of the impact economy.

If you’d like to dive deeper into the full report, you can read it on NPC’s website here.