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 Phil Hope, Minister for the Third Sector, speaking at a groundbreaking social investment conference, has today announced a new programme of work to help standardise and improve how social return on investment (SROI) is measured. The Government is to carry out a project that will bring together the public sector, independent investors and social enterprises to agree a standard methodology for SROI measurement that places a financial value on social benefit.

The research aims to be an important driver of the rapidly developing social investment market and is designed to help third sector organisations, including charities and social enterprises, access more sustainable funding and finance. This is an exciting and developing field that may soon see the introduction of a social stock exchange and a social investment wholesaler.

It is estimated that ethical business in the UK is worth around £30bn. Increasingly, investors are looking at the impact of their investments on society and the environment. Consistent measurement of social return has the potential to enable investors to put a financial value on the social and environmental benefits derived from their investment. It could also help commissioners of public services take better account of the social value of a service when tendering for a contract.

Phil Hope, Minister for the Third Sector said:

'I am pleased to announce that the Office of the Third Sector will undertake fundamental development work on Social Return on Investment. Social enterprises and other third sector organisations play hugely important role in improving peoples' lives as well as the environment. Like any businesses they need access to finance. This will enable them to demonstrate their impact to investors and public services and help them attract funding.'

The Office of the Third Sector in the Cabinet Office, in partnership with NESTA, is presenting Good Deals, the first national social investment conference, sponsored by the RBS Group and organised by Social Enterprise magazine. This reflects the UK Government's position at the forefront of social investment.