Sked will advocate a withdrawal from the EU, renationalisation of the railways and an end to the coalition’s so-called bedroom tax.
He said: "I think the majority of the people in this country want out of the EU," reports the Sunday Times.
"They would like a party devoted to this cause, but couldn’t vote for one that was extremely right wing. They will now be given a serious alternative to the major parties and to UKIP."
In an interview with the Huffington Post UK last year, Sked described Ukip as "xenophobic".
Story continues after slideshow...
COMING UP INTO THE WORLD: Ukip Are Born
Ukip was founded in 1993 by LSE professor Alan Sked in opposition to the <a href="http://www.huffingtonpost.co.uk/2011/12/01/sarkozy-calls-for-refounding-of-europe_n_1123908.html" target="_blank">Maastricht treaty</a>.
GOING DOWN: 1997 General Election
Ukip fielded 193 candidates but only got 0.3% of the vote, losing out to the just as Europhobic Referendum Party, led by billionaire publisher and politician, Sir James Goldsmith, (left), who got 2.6%. Sked resigned saying Ukip "they are racist and have been infected by the far-right", a reputation they have yet to shake. He was replaced with Michael Holmes
GOING UP: James Goldsmith Dies
The unfortunate death of the rival party leader led to the dissolution of the Referendum Party with many members subsequently joining Ukip.
GOING UP: 1999 Elections To European Parliament
Ukip got 7% of the vote and gained three MEPs. This jolly looking chap, Jeffrey Titford, was one of them.
GOING DOWN: Holmes Resignation And 2001 General Election
Holmes was forced to resign in 200 due to a conflict between himself and the Ukip's National Executive Committee. Titford became leader. In the following year's general election Ukip failed to gain any seats with a 1.5% of the vote. (The man pictured is not a member Ukip but a pictorial representation of the misery felt by the party during this difficult time)
GOING STEADY: Knapman Takes Over
Titford decided he didn't really like being leader and so was replaced with this fellow, Roger Knapman in 2002. Knapman attracted some attention in 2006 when he employed a team of Polish builders to renovate his home despite his anti-immigration stance.
GOING WAY UP: 2004 European Elections
Building on their previous European success, Ukip went on to gain a (in relative terms) massive 12 MEPs in 2004. Godfrey Bloom, seen here far-right, immediately triggered a storm of protest over women's rights within hours of starting work in the European Parliament. After being given a place on the Parliament's Women's Rights Committee he told journalists he wanted to deal with women's issues because "I just don't think they clean behind the fridge enough", adding: "I am here to represent Yorkshire women who always have dinner on the table when you get home. I am going to promote men's rights." What a charming gent...
GOING DOWN TO THE PERMA-TANNED BOTTOM: Kilroy
The deliciously named, orange-faced TV agony aunt, Robert Kilroy-Silk, caused a tabloid frenzy when recruited to Ukip in 2004. He was elected an MEP that year but did nothing to hide his ambitions for leadership causing some consternation amongst the ranks. Silk left the party after nine months. His TV show, Kilroy, was cancelled after he wrote an article in the Sunday Express titelled '<a href="http://www.telegraph.co.uk/news/uknews/1451394/Kilroy-Silk-I-wont-be-gagged-about-the-evils-of-Arab-states.html" target="_blank">We owe Arabs nothing</a>'.
GOING UP PAST THE TORIES: Hartlepool By-Election
Ukip finished third in 2004 above the Conservatives who came fourth. <a href="http://www.thefreelibrary.com/Justice+4+flour+dad.-a0124833105" target="_blank">In other news this flour incident also happened.</a>
GOING DOWN TO THE BEACH: 2005 General Election
Ukip were rubbish. They didn't gain a single seat and their best result was third place in Boston & Skegness.
GOING UP. OR DOWN DEPENDING ON YOUR OPINION OF THIS MAN: Nigel Farage
September 2006 saw the introduction of Farage as leader.
GOING UP WITH BAGS OF CASH
In 2009, Tory party donor extraordinaire, Stuart Wheeler, jumped ships and gave Ukip £100,000. He was, rather unsurprisingly, expelled from the Conservative party for his treachery.
GOING DOWN WITH SOME DODGY FRIENDS: Geert Widlers
In 2009 Farage stood down as Ukip leader so he could contest the seat of Buckingham. Lord Pearson was chosen to replace him. Here is Pearson at a joint press conference with well-known Dutch extreme right-winger and general Islam hater, Geert Wilders. #justsayin
GOING UP THROUGH THE POLITICAL GLASS CEILING: 2009 European Elections
A climate where the electorate were slightly miffed at a banking crisis at the amount some MPs were claiming on expenses was a bonus for Ukip. They gained 16.5 per cent of the vote, or to put it another way, they beat the government.
GOING DOWN AGAIN: 2010 General Election
Farage lost to John Bercow. Once again, Ukip failed to win a single seat. This disaster however was slightly overshadowed by...
GOIND DOWN RATHER QUICKLY AND WITH A SLIGHT BUMP: Plane Crash
Farage was a passenger in this plane when it crashed on the morning of the elections. He broke his sternum, ribs and punctured a lung. The cause of the crash was put down to the Ukip banner the plane was towing getting caught in aircraft's tail.
GOING UP A LITTLE BIT: Farage Re-Election
Farage was re-elected in August 2010. Lord Pearson said: "The UKIP crown returns to its rightful owner". How nice of him...
GOING UP HIGHER THAN THEY'D EVER BEEN BEFORE: Rotherham By-Election
UKIP's Jane Collins came second in the 2012 vote with Ukip's highest ever share in a parliamentary election.
GOING UP SO MUCH IT MADE FARAGE DO THIS FACE: Eastleigh By-Election
Cometh the hour, cometh the grin. This was a huge coup for Ukip as they took second place in front of Labour and the Conservatives in 2013.
GOING DOWN WITH RACIAL PREJUDICE: Election Candidate Scandals
Farage admitted the party couldn't possibly have vetted all their candidates in the 2013 local elections. Unfortunately for Ukip it meant a number of slightly dubious characters being exposed in the press. This lady for example is alleged to have said: "<a href="http://www.huffingtonpost.co.uk/2013/04/25/anna-marie-crampton-ukip-candidate-suspended_n_3154709.html?utm_hp_ref=ukip" target="_blank">Only the Zionists could sacrifice their own in the gas chambers</a>." That, quite frankly, is simply not on.
FLYING HIGH: Local Elections 2013
He's right to look chuffed with himself. Ukip came second in the South Shields by-election and got 26 per cent of the vote in the local elections. The Conservatives and Liberal Democrats both lost seats. The biggest surge by a fourth placed party since WWII does not bode well for the coalition in 2015.
This slide has nothing to do with anything but this picture can NOT go to waste...
He said: ""Its extraordinary that at the last general election, with the country facing the greatest economic crisis since the Great Depression, [Ukip's] flagship policy was to ban the burqa."
"They're not an intellectually serious party. Their views on immigrants and on [banning] the burqa are morally dodgy."
Sked founded Ukip in 1993 but resigned in 1997 in protest at the increase in factionalism and the influence of the far-right.
He also hopes to challenge Ed Miliband's Doncaster constituency in the 2015 general election, while another New Deal candidate could stand against Nick Clegg in Sheffield.
New Deal may well be an extra headache for Labour at a time when Miliband's leadership is being increasingly criticised.
Miliband has consistently failed to give a definitive stance on EU membership and has been accused of "dithering".
He faced further pressure this week over his handing of the Unite Falkirk row, drawing criticism from former home secretary, David Blunkett.
Last month, Ukip MEP, Godfrey Bloom caused a stir by referring collectively to countries that receive aid from the United Kingdom as "bongo bongo land".