Charity sector leaders have welcomed the government’s launch of an Office for the Impact Economy to improve philanthropy and social investment.

The new unit will be housed in the Cabinet Office with Chief Secretary to the Prime Minister Darren Jones as its ministerial lead.

Setting up the Office for the Impact Economy was among recommendations made by a Social Impact Investment Advisory Group earlier this year involving the Treasury and the Department for Culture, Media and Sport.

Driving cross government impact economy strategy and acting as a “front door or new impact economy relationships” are among its priorities.

Supporting councils and other government departments to work in partnership with philanthropists, social investors and others involved in the impact economy are also part of its remit.

Charities Aid Foundation chief executive Neil Heslop said the new unit “is an important step towards the government learning how to partner more effectively with philanthropy, impact investing and responsible business”.

He added: “The Office should help to mobilise more impact capital to tackle some of the biggest social challenges we face, and crucially, all of us must take the necessary steps to grow giving in the UK.

“CAF has long called for a strategic approach from government to increase philanthropy – and the wider impact economy – to support charities to do their vital work, and this is an encouraging signal of action to come.”

James Somerville, head of policy at think tank New Philanthropy Capital says that the unit’s launch “shows that this government is serious about engaging with the impact economy”.

“A single front door and clear strategic direction will help government work more effectively with impact organisations to tackle shared priorities. This joined-up approach is a step change from what we’ve seen before,” he said.

“The level of commitment at the heart of government is promising, and we look forward to shaping this next chapter with colleagues across the sector.”

The think tank is to publish a report on growing the impact economy next year.

It’s chief executive Jonathan Simmons added: “The creation of the Office for the Impact Economy can unlock billions in capital and drive inclusive growth. It’s a clear signal that government recognises this as a growing and vital part of our economy.”

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