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This publication, the second in the series, sets out the framework for effectively evaluating policy initiatives which are designed to promote lifelong learning and to produce wider economic and non-economic benefits. It is structured as follows: chapter one outlines the main issues covered in this paper, drawing distinctions between monitoring, evaluation and modelling; chapter two discusses the approaches to evaluation that are located within the social science literature as well as evaluation methods that have more of a management perspective, and brings together the similarities and differences between these two approaches to evaluation; chapter three provides an overview of measuring relevant outcomes, both learning outcomes and their wider benefits; chapter four focuses on research design; chapter five covers the statistical analysis; chapter six shows how the cost-benefit analysis can be used to provide an economic assessment of interventions; and the final chapter sets out the conclusions and recommendations. The chapters are: Introduction; Types and styles of evaluation in lifelong learning; Outcomes from lifelong learning interventions; Designs for impact evaluation; Estimating impact using statistical modelling; Cost-benefit analysis; Conclusions and recommendations. Also included are three appendices: (1) Data sources for monitoring lifelong learning; (2) Systems representation of a lifelong learning programme; (3) Stufflebeam scheme of evaluation comparisons.