The Role of NPISH Measurement Improvements in Developing a Voluntary Sector Satellite Account

The UK voluntary sector - including charities, social enterprises, cooperatives and volunteers - plays a vital role in the national economy. It supports essential public services such as health and social care, contributes to employment and skills development, drives innovation in local communities, and generates significant economic value through volunteering and fundraising. However, its economic contribution is currently underrepresented in official statistics. The Non-Profit Institutions Serving Households (NPISH) sector within the UK National Account gives us only a subsection of the full voluntary sector as many organisations are excluded from NPISH because they earn income through trading or fall outside strict definitional criteria. This discussion paper explores how improving the measurement of NPISH can lay the groundwork for developing a voluntary sector satellite account; a supplementary statistical framework that would provide a more accurate, holistic view of the voluntary sector’s role in the UK economy.