A highly critical government review has concluded that “deep-seated” issues must be addressed before the UK’s Office for National Statistics (ONS) can “rebuild its reputation.”
The review was commissioned in response to repeated problems with ONS data, which informs critical decisions impacting millions of citizens, prompting government scrutiny of the agency and its leadership.
According to the review, many of these problems stem from “inadequacies” in the ONS’s planning and decision-making processes.
The ONS has acknowledged the issues raised in the report, welcoming its findings and outlining plans to restore the quality of its economic data.
The ONS provides data utilized by government bodies for crucial policy decisions, including setting state benefit increases, planning housing developments, and informing strategies related to migration and crime.
The Bank of England also relies on ONS data when evaluating adjustments to interest rates, which subsequently affect rates on mortgages, credit cards, and other loans.
In April, Sir Robert Devereux, a former senior civil servant, was tasked by the government to conduct an independent investigation into the ONS following a series of data-related concerns.
Sir Robert concluded that “most of the well-publicized problems with core economic statistics are the consequence of ONS’s own performance,” attributing this to “choices made at the top of ONS, over several years.”
He noted a preoccupation with “the new” that diverted attention from the “less exciting but crucial task” of ensuring core economic data were of sufficient quality to inform sound decision-making.
The report also pointed to a reluctance at senior levels to acknowledge and act upon unfavorable information.
The ONS has faced criticism from its regulator for its “defensiveness” in responding to critiques of its new analysis of gender identity.
Furthermore, repeated upward revisions to migration figures have raised questions regarding the reliability of its population data.
The Bank of England has also consistently voiced concerns regarding the reliability of the ONS’s job market data.
During the review process, Sir Ian Diamond, the National Statistician and head of the ONS, stepped down with immediate effect, citing health reasons.
The ONS, like many statistical bodies, has faced challenges related to budget constraints and difficulties in securing public participation in data-gathering questionnaires.
Sir Robert emphasized the need for a swift resolution to the ongoing dispute between management and staff regarding the return to office work. He also highlighted that comparatively low salaries for analysts were hindering recruitment and retention efforts.
He summarized his findings by stating he was “not surprised that so many, experienced, senior leaders have chosen to leave”.
Given that many of the identified issues were organizational rather than technical in nature, he recommended splitting the role of National Statistician into two distinct positions.
He proposed recruiting a senior civil servant to manage the organization’s operations, while a senior statistician would provide technical expertise and leadership for the government and ONS staff.
In response to the review, Acting National Statistician Emma Rourke stated that she welcomed the report and “fully acknowledges the issues he has highlighted.”
The ONS has also unveiled plans to improve the quality of its core economic statistics.
These improvements will be funded by discontinuing the development of its data linking program, which integrates various government datasets, and by implementing management restructuring. These changes are projected to save approximately £10 million, which will be reinvested to enhance the ONS’s capabilities.
Despite these measures, the ONS will continue to operate under budget constraints.
While the recent spending review allocated additional funding to the UK’s statistical system to prepare for the 2031 census, the remaining funding is not expected to keep pace with inflation.
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