UK Government Launches Investigation into Office for National Statistics Amid Data Criticism

The UK government has launched an investigation into the Office for National Statistics (ONS), the country’s official statistics agency, following concerns about the accuracy and reliability of its data, which is used to guide key decisions affecting millions of people.

The Bank of England has previously raised issues regarding the ONS's labour market data, which is crucial for determining interest rate decisions. In response to these criticisms, the government has appointed former senior civil servant Sir Robert Devereux to conduct an independent review of the ONS.

Review to Assess ONS’s Effectiveness and Organisational Structure

Sir Robert Devereux will assess the effectiveness of the ONS in delivering its core statistics, as well as evaluate the agency’s organisational culture, leadership, and its relationships with key government bodies such as the Treasury and Cabinet Office. The UK Statistics Authority, which oversees the ONS, will also play a key role in ensuring the review addresses the concerns raised about the agency's performance.

Concerns Over Labour Market Data and Response Rates

A major issue highlighted in the review stems from the ONS’s labour force survey, which collects information on employment, joblessness, and economic inactivity. The Bank of England’s chief economist, Huw Pill, previously expressed concern over the low response rates to the survey, which were exacerbated during the COVID-19 pandemic. As a result, the Bank of England has indicated it cannot fully rely on the ONS’s data for its interest rate decisions and instead has turned to other sources for more reliable figures.

The ONS has acknowledged these issues and committed to introducing a more accurate labour data series by next year, though Sir Ian Diamond, the national statistician and leader of the ONS, has warned that the new data series may not be available until 2027.

Looking Forward: New Business Plan and Strategy

In addition to the review, the ONS announced it will release a new strategic business plan later this week. The plan will outline how the agency intends to prioritise key statistics and services in the upcoming year.

Sir Robert Chote, chair of the UK Statistics Authority, emphasized that this review presents an opportunity to ensure the ONS can perform at its best in an increasingly challenging environment.

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