Office for the Impact Economy
(1 day, 20 hours ago)
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Lord Rook
To ask His Majesty’s Government how they monitor and measure the progress and impact of the new Office for the Impact Economy.
Baroness in Waiting/Government Whip (Baroness Anderson of Stoke-on-Trent) (Lab)
My Lords, I thank my noble friend for the work he has done to get us to this place. The office’s impact and progress will be measured against its remit, including an increase in the Government’s capacity and capability to partner with the impact economy, an increase in the number of partnerships across the country and an increase in the amount of impact capital committed to places and areas of government priority. The progress of the office against these areas will be monitored through a cross-government ministerial board chaired by the Chief Secretary to the Prime Minister.
Lord Rook (Lab)
I thank my noble friend. I am sure noble Lords will join me in welcoming the creation of the Office for the Impact Economy in the Cabinet Office. Given the tendency of Governments sometimes in the past to work independently of social investment and philanthropy, I am interested in which areas and departments of His Majesty’s Government will use the new Office for the Impact Economy to foster greater investment and increase collaboration and innovation around important areas of public policy.
Baroness Anderson of Stoke-on-Trent (Lab)
My Lords, the office is already building partnerships to benefit people in exactly the way my noble friend has outlined. We are working with MHCLG to secure match funding for the £5 billion Pride in Place programme, and with DHSC on the neighbourhood health implementation programme. In the early years space, we are supporting the DfE’s Blended Finance Facility and working with it on the Best Start Family Hubs match fund and of course the better futures fund, the biggest outcomes fund in the world, which will change the life chances of over 200,000 children over the next decade. This is only the beginning. The Office for the Impact Economy really will help us deliver on our promise of national renewal.
Lord Wallace of Saltaire (LD)
My Lords, the Liberal Democrats are strongly in favour of a larger third sector—mutuals, non-profits and charities—rather than outsourcing, for example, special needs or care homes to the private equity sector instead. The Social Impact Investment Advisory Group’s report, which foresaw the setting up of this new office, said priority one was to establish
“visible leadership at both ministerial and senior civil service levels”.
Does the Minister agree that visibility has been rather blurred so far and that, if one wants to attract the wealthy philanthropists into partnership with the government to strengthen the third sector, a great deal more visibility is needed?
Baroness Anderson of Stoke-on-Trent (Lab)
My Lords, I thought it was the season of goodwill and I genuinely thought there was going to be a positive question. In terms of visibility, let us be clear that the Office for the Impact Economy was announced by the Prime Minister—I am not sure how much more visible or committed we can be. Also, the main Minister leading this is the Chief Secretary to the Prime Minister, who will be overseeing its implementation, along with my right honourable friend Lisa Nandy, the Secretary of State for Culture, Media and Sport. This is being led at the highest level, with huge commitment. This is an excellent report, led by Dame Elizabeth Corley. We thank her for her work. We are now seeking to work with her and the wider team to co-design what happens next, to make sure that we can deliver on the promises that can come from the impact economy.
Lord Sherbourne of Didsbury (Con)
My Lords, I did not quite understand the Answer the Minister gave to the noble Lord, Lord Rook. I have gone to the website and I understand that the Office for the Impact Economy is going to act
“as a ‘front door’ for … impact economy relationships and general strategic relationships and … delivery relationships”,
all through a “huband spoke model”. Can the Minister explain in plain English what it is going to do?
Baroness Anderson of Stoke-on-Trent (Lab)
My Lords, I praise the civil servants that are genuinely communicating well in this space. With regard to the hub-and-spoke model, the Office for the Impact Economy is based in the Cabinet Office, working with civil servants across the departments that will be able to help deliver it. We are trying to create a one-stop shop for philanthropists, social enterprises and social purpose-driven businesses so they know one place to come, and then it is up to government to be able to facilitate what they need. We are talking about potential investment— as was established by the report published last month— of £106 billion of assets; £42 billion is already being spent on government priorities. This is to make sure everyone is swimming in the right direction by providing a one-stop shop. I hope that provides a level of basic English for the noble Lord.
The Lord Bishop of Derby
My Lords, I am pleased to endorse the Government’s intentional investment in social impact, but may I ask the Minister how the new Office for the Impact Economy plans specifically to engage with faith-based organisations and faith-motivated individuals, including—but not exclusively—from the Christian community, to optimise the reach for common good of such faith-driven philanthropy?
Baroness Anderson of Stoke-on-Trent (Lab)
I thank the right reverend Prelate. She raises a very important point, especially at this time of year when many people are considering their charitable donations. The UK has a proud tradition of charitable giving and philanthropy and I take this opportunity to thank our country’s faith communities for their generosity towards charitable causes. The Government are determined to create a more supportive environment for philanthropy and we will work to make giving as easy, compelling and impactful as possible. The new Office for the Impact Economy will work with philanthropic foundations and institutions, many of which are faith based, to explore how we can make this happen. For example, where I believe both the church and other faith communities can clearly assist is with DCMS’s efforts on place-based philanthropy. Noble Lords will appreciate that faith communities tend to have a footprint in every community and, when we are seeking to ensure impactful reach in disadvantaged communities, working with faith-based communities will be the most important way of achieving that.
Baroness Bull (CB)
My Lords, in launching this new office, Darren Jones noted:
“Change comes as much from the ground up as from the top down”.
He highlighted the crucial role of people who know their local area and communities, and know
“the problems and the opportunities inside and out”.
The issue is that these community groups may not recognise themselves in the term “impact economy”. Can the noble Baroness say how the office will tailor its approach to ensure it reaches not just people who have this kind of language available but are truly on the ground doing the work?
Baroness Anderson of Stoke-on-Trent (Lab)
This is a genuinely important point from the noble Baroness. There are several parts to this: it is about empowering local communities but also ensuring that there is training undertaken, so that community groups can genuinely access some of the funds. I used to run a national charity and am very aware of how challenging it can be for local charities to access some philanthropic pots of money. There are two schemes where I think that we genuinely will be able to work with communities. The first is the Pride in Place scheme, where we are seeking to deliver over £5 billion-worth of funding in 244 areas. We are talking in this space about £2 million per year for 10 years in specific communities; I should declare that my husband is on the board of my local Pride in Place scheme in Bentilee. We will also hope to work with them to ensure match funding to expand that £2 million to up to £4 million a year, which can genuinely make a difference at the award-based community level. There is also the better futures fund, which is an outcomes-based fund. It is government saying not what needs to be done but what ultimately we need to achieve, and leaving it up to local people to determine how to get there.
Baroness Finn (Con)
My Lords, while the objectives of the Office for the Impact Economy are welcome, the creation of a new office is no guarantee of delivery. We have seen how other co-ordinating bodies, such as the Government’s newly reformed mission boards, have struggled to translate cross-government ambitions into outcomes. The Office for Value for Money has been closed down, at a cost of the taxpayer of £1.6 million. What assurances can the noble Baroness give that this office will be different, and what specific measures have the Government incorporated to ensure that it achieves tangible and measurable results?
Baroness Anderson of Stoke-on-Trent (Lab)
And there was me hoping for Christmas miracles and not for the Grinch.
Baroness Anderson of Stoke-on-Trent (Lab)
Thank you for the “Merry Christmas”.
My Lords, let us be clear about why this is so extraordinary and exceptional. We are working to bring together social investors, social enterprises and philanthropists to deliver, using their expertise and ours to make sure that this works. Already, a significant number of assets are delivering. Why do I think this will be so successful? Only last month, Legal & General announced an additional £2 billion of investment in this space, which is going to lead to an additional 24,000 jobs and 10,000 social and affordable homes. When we talk about what this Government are trying to do for our national renewal, it is about 1.5 million homes and homes anchored in communities. This is about delivering for every corner of society; that is what we are doing with the Office for the Impact Economy.