Overview
Policy makers should consider the impact of new proposals on stakeholders. Impact assessments are a core part of the policy making process for any proposed change in legislation. Complete one at different points of the policy development process, to assess the costs, benefits and risks of a proposal. Involve the Evidence and Analysis Unit (EAU) early on.
Types of policy
You generally need to do an impact assessment if your proposed policy affects the private sector, the third sector or public services. You will need to do an impact assessment if the policy involves:
- additional costs or reduced costs for businesses or the third sector
- additional administration or reporting for the public sector
- new regulatory costs for the public sector of more than £5m
- redistribution affecting the public, private or third sector
- a collective agreement for UK negotiating positions on EU or international issues
Timing
Development stage
Articulating the problem, objective, options and likely impact are useful in early stage of policy development, but a formal document is not required.
Consultation stage
If a public consultation is carried out, complete assessments for each of the policy options that stakeholders will debate.
Final proposal stage
When the Government announces its support for a single policy option, and when the proposal enters Parliament.
Enactment stage
Only if material changes have been introduced during the Parliamentary process that affect the assessment of costs and benefits.
Review stage
When a Post Implementation Review is carried out, three to five years after the initial implementation of the policy.
