Policy areas to be covered by SIPS include housing, welfare reform impact, labour markets, regeneration, the voluntary and community sector, social justice and human rights, public health and education.

It will also encourage multi-disciplinary policy studies research with attention on key issues such as austerity, migration, devolution, public sector transformation and young people.

At the launch of SIPS, The Guardian columnist Polly Toynbee said: "We have to hope government policy is shaped by practical research. The Government needs to know it is spending money well and, quite simply, needs to know what works."

Professor Peter Wells, co-director for SIPS, said: "We recognise that solutions to the great economic, social and environmental challenges facing policy makers today cannot be addressed adequately by single academic disciplines, without full engagement of policy communities, nor without the involvement of the public.

"With this in mind we have created a space for innovative, inter-disciplinary working and capacity building that will extend its reach beyond the University to engage with a dynamic and expanding group of stakeholders."