Select Committee on Treasury Written Evidence


Supplementary memorandum by the Statistics Commission

THE INTER-DEPENDENCE OF STATISTICAL WORK IN GOVERNMENT

  The statistical outputs of government departments are, in the main, readily available on departmental websites. Some, such as Census statistics, are well known and widely used in decision-making. What is less well known is that many of the thousands of sets of statistics and reports do not arise simply from within one department. Rather they are the result of agreement and co-operation between several departments, sometimes involving shared funding, interchange of data and joint publication arrangements.

  This network of interdependencies is not much discussed in existing official reports although the annual National Statistics Work Programme provides ample evidence of its existence. As one example, the interdepartmental group of officials that co-ordinates health statistics has input from, in addition to the Department of Health, some 10 other departments and agencies.

NATURE OF THE INTER-DEPENDENCE

  This note illustrates the dependencies through selected examples. These are particularly relevant at a time when the Chancellor has announced plans to legislate to make statistical work more independent from the rest of government.

  The Statistics Commission has long argued that existing statistical arrangements can be improved and we have welcomed the Chancellor's announcement. We do, however, urge that, in planning the changes, the statistical interdependency between ONS and other government departments, and between these departments and the devolved administrations and some other bodies too (Higher Education Statistics Agency, Health and Safety Executive etc), must be factored in to the final structure and reflected in the roles of any new bodies established.

  The nature of the interdepartmental co-operation varies. Where permitted by law and ethical considerations, one department may pass individual records (relating to persons or businesses) to another department so that those records can be combined with other data to produce a richer basis for statistical analysis—for example NHS patient lists are used by ONS in estimating population migration within the UK.

  The transfer of raw records is, however, a relatively uncommon form of co-operation—although it may grow in the future. More typically, two or more departments need to agree on the form of data collection, technical definitions and standards, the coverage of surveys, the timing of production, the transfer of aggregate information, the form and timing of publication etc. There is also some shared funding of statistical activities—such as the Neighbourhood Statistics programme which is funded by both ODPM and ONS.

  Departments also need to co-operate in agreeing a UK position on statistical matters to be taken forward by ONS at the EU or wider international level.

  Some examples:

    —  Estimating the population: ONS compiles and publishes estimates of the UK population. The 10-yearly Census provides the benchmark for these. ONS directly manages the Census for England and Wales but the Census in Scotland is conducted by the General Registrar Office Scotland; and that in Northern Ireland by the Northern Ireland Statistics and Research Agency. Putting together UK estimates requires close co-operation between the three departments, and with the Welsh Assembly in some aspects, to ensure a common approach and the compatibility and consistency of data.

    —  Estimating migration: Data on migration flows—internationally and within the UK—are important for tracking population changes, which in turn are fundamental for resource allocation and policy analysis across government. They are recognised as being unsatisfactory currently. Statistics on international migration are published by ONS, which also manages the International Passenger Survey, a principal source. Other sources include the devolved administrations and UK departments such as the Home Office, which compiles statistics on asylum seekers and estimates of illegal immigration. ONS estimates of internal migration make use of NHS records from all parts of the UK. Improving estimates of migration is likely to require data from DH, HO, ODPM and ONS and devolved administrations to be brought together to create new estimates.

    —  Analysing demand for social care: To analyse future demand for social care for the elderly and others in need, data from the Department of Health, DWP, demographic estimates from ONS, and data from local authorities (via ODPM and devolved administrations) need to be drawn together. Coherence and compatibility of these data sources is an issue at present (a forthcoming report by Sir Derek Wanless will refer).

    —  Underpinning government targets: Official statistics are widely used as the basis of hundreds of top-level targets set by government. There has been criticism in the past of targets set without adequate data being available for monitoring. The Statistics Commission's forthcoming report PSA Targets: The Devil in the Detail (for publication 20 March 2006) points to the need for joined-up planning to meet current and future data requirements.

    —  Monitoring agriculture: DEFRA are responsible for compiling the UK agricultural statistics required to comply with European regulations. The devolved administrations collect and provide DEFRA with the relevant data for their countries.

    —  Compiling National Accounts: ONS put together the UK national accounts drawing in data from other departments. For example, construction output comes from DTI; agricultural output from DEFRA and devolved administations.

    —  Monitoring public sector finances: ONS and Treasury work together to produce, and jointly publish, monthly data for public sector finances. HMRC (tax receipts), ODPM (local authorities borrowing) and the Bank of England (banking data) are also involved as data suppliers. Pulling the monthly data together quickly requires close co-operation.

    —  Tracking cancer incidence: Cancer statistics for the UK are published by ONS. Data come from nine regional cancer registries in England and from cancer registries in Wales, Scotland and Northern Ireland. The registries need to co-operate both with each other and with ONS and the devolved administrations to ensure that the information is consistent. Cancer statistics are an example of sharing confidential personal data for statistical purposes.

    —  Evidence for local areas: The Neighbourhood Statistics service provides a wealth of small area information for a wide range of indicators, covering topics such as education, health and care, crime and safety, housing, the physical environment, population and migration and aspects of deprivation. The website is managed by ONS, but maintaining it requires the active co-operation of many other government departments including DfES, ODPM, DH and Home Office.

    —  Monitoring the labour force: The Labour Force Survey is conducted by ONS for Great Britain (there is a separate LFS for Northern Ireland). Together the surveys provide information on the UK labour market. In order to improve the robustness of data for particular areas, ONS make a number of targeted "boosts" to LFS sample size. These boosts have been agreed as partnership projects with the relevant departments which provide funding support in return for more robust data. Partnership projects are in place with DWP and DfES for England, with the Welsh Assembly and with the Scottish Executive.

    —  Maintaining the Inter-Departmental Business Register: This is a core index of UK businesses maintained by ONS, which is used as a base for selecting samples for the statistical surveys that underpin UK economic statistics. Information for the IDBR comes from a number of sources including HMRC (VAT payments and repayments, and PAYE collection). A number of departments besides ONS use the IDBR for their surveys, including ODPM, DTI and DEFRA and the devolved administrations.

    —  Measuring government output: The work to follow up the Atkinson Report on measuring government output and productivity is led by ONS but involves a number of departments and the sharing of key staff and expertise.

    —  Addressing deprivation: The Index of Multiple Deprivation is commissioned by ODPM, but constructed by a research institution. Corresponding indices are commissioned by the devolved administrations. This work involves the co-operation of a number of government departments (including ONS, DfES, DWP, DH, HMRC, ODPM, HO) in supplying local data covering income, employment, health and disability, education, skills and training, housing and services, environment, crime. The indices are used extensively by local and central government to identify deprived areas. The future of such indices will require ongoing central co-ordination.

    —  English Longitudinal Study of Ageing: This statistical survey is jointly sponsored and funded by a number of government departments (DH, DWP, ONS, ODPM, DCM, DfES, Treasury), as well as the National Institute on Aging in America. Several departments have drawn on ELSA data in their research activities eg ODPM in their work on social exclusion and older people, ONS and DWP.

    —  Work and Pensions Longitudinal Study: The WPLS is an example of detailed data sharing between two departments. It links benefits information held by DWP, with employment records from HMRC. It is governed by the data-sharing provisions of the Employment Act 2002. The individual data records are confidential so there are restrictions on access and on the purposes for which access is allowed. Examples of uses include providing information on the effectiveness of Job Centre Plus, and understanding the links between savings held and the benefits in retirement.

    —  Regional statistics: Implementing the Allsopp Review of statistics for economic policy making will require close co-operation across all government departments and the devolved administrations.

May 2006



 
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