The UK Games Fund is expected to produce productivity benefits ranging from £30 million to £58 million

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The UK Games Fund (UKGF) is projected to add between £30 million and £58 million ($40.6 million to $78.5 million) in economic productivity within the UK, as detailed in a recent report.

The Evaluation of the UK Games Fund, released on July 18, conducted by Alma Economics, assesses the economic impact of this non-profit organization, which focuses on aiding early-stage video game development in the UK.

This analysis suggests that the ongoing three-year span of the UKGF since its establishment in 2015 could yield substantial productivity gains for the UK economy, due primarily to salary increases among developers receiving support from the fund.

The report identifies a favorable benefit-cost ratio ranging from 3.8 to 7.3, with an average estimate of 4.8, considering the expenses involved.

Further, the UKGF has facilitated job growth within the UK's gaming industry, according to the evaluation.

Research indicates that funding from the UKGF has resulted in an additional 0.3 full-time equivalent (FTE) employees after one-year of support, compared to counterparts lacking such assistance.

Each £10,000 ($13,500) increment in funding is linked to a rise of 0.2 FTE positions and a 5 percentage point increase in the creation of reusable assets or code within a year, with higher funding correlating to greater increases.

The economic analysis predicts that the current three-year UKGF initiative will contribute approximately 430 new FTE jobs to the UK's video game industry.

In January, the Culture Secretary, Lisa Nandy, announced a substantial £5.5 million ($7.4 million) funding boost for the UKGF at a Creative Industries event in Gateshead. This award ensures the organization is funded at an unprecedented level for 2025/6, surpassing all previous grants given annually.

Additionally, in June, a new UK Video Games Council was formed to strengthen connections with Whitehall and enhance growth in the UK's creative sectors. Complementing this effort, the government has launched a £30 million ($40.6 million) Games Growth package to further support British game development initiatives.

gamesindustry.biz
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