1. Background

At the Autumn Budget 2024, the Government announced plans to create a new ‘Social Impact Investment Vehicle’ to mobilise private investment that delivers positive social impact to support the Government to deliver its missions. The Chief Secretary to the Treasury has subsequently established this Advisory Group, in partnership with the Secretary of State for Culture, Media and Sport (DCMS), bringing together government, socially motivated investors, representatives from civil society and social investment experts to support policy development of the vehicle.

The advisory group will report to the Chief Secretary to the Treasury and DCMS SoS and will meet monthly from January 2025. It will be time-limited for 6 months, until June 2025.

2. Purpose

Building on the UK’s strong industry leadership in social impact investing, this group seeks to advise Government on how to tackle complex social issues and support delivery of the Government’s missions by blending impact and philanthropic capital and targeting investment to government commitments.

The advisory group will:

1. Provide advice on effective ways for Government to use funds to mobilise social impact capital, making recommendations for the objectives, design and intended social outcomes of one or more Impact Investment Vehicles to announce at the conclusion of the Spending Review (SR) in June 2025. Funds in scope will include, but are not limited to, social outcomes partnerships and match-funded philanthropic or other capital.
2. Review existing work on impact capital across government and provide views on the long- term future and direction of this work, aligned with the missions. This work will complement but not replace the Government’s broader work on the impact economy.

3. Governance, responsibilities and resourcing

The advisory group will advise and provide challenge to the Government by:

• Advising on the design, development and implementation of the initial Impact Investment Vehicle for SR, providing challenge, steers and counsel on the direction of policy development and how it will be received. The scope of this includes the work of any associated working groups.
• Providing expertise on social impact investment or philanthropy and its applications to policy challenges highlighted by officials. This may include establishing working groups to develop and take forward actions in specific areas in between meetings.
• Advising on engagement across the market, including with major foundations, private sector investors, civil society, learning platforms, international organisations and other global policymakers and researchers.
• Making recommendations on the future direction and structure of the advisory group.

4. Membership

Dame Elizabeth Corley, former CEO of Allianz Investors and current Chair of Schroders, will chair the advisory group, bringing a wealth of knowledge from both the financial sector and social investment world – also serving as Chair Emerita of the Impact Investing Institute.

The group brings together impact investors from some of the world’s biggest banks and funds, civil society and industry experts to support government in creating the right environment for impact investment across the UK.