The UK’s official statistics agency, whose information is at the heart of decisions affecting millions of people, is under review following criticisms about its data.
The government has asked a former top civil servant to conduct an independent investigation into the effectiveness of the Office for National Statistics (ONS).
The Bank of England has previously criticised the statistics agency for the reliability of its job market data, which the central bank looks at to decide whether to raise or cut interest rates.
The ONS has previously accepted its economic data has some issues and on Tuesday said it looked forward to engaging with the review.
It added that later this week it will publish a “new strategic business plan” which will set out “how key statistics and services will be prioritised over the year ahead”.
The Cabinet Office and the UK Statistics Authority, which has oversight of the ONS, said that they have asked Sir Robert Devereux to lead the review which will “assess the effectiveness of the ONS in delivering its core statistics”.
He will also examine the agency’s “organisational culture, structure and leadership” and look at the effectiveness of its relationships with the Treasury and the Cabinet Office.
The reliability of the ONS’s labour force survey has been an issue for some time. The survey gathers information from households on areas such as employment, joblessness and economic inactivity.
The Bank of England’s chief economist Huw Pill wrote to the ONS last May to raise concerns about “ongoing problems” with the survey, such as low response rates which had worsened during Covid.
As a result, he said the Bank was unable to “place much weight” on the ONS’s data and had to use other official figures to help decide on interest rates.
The ONS has committed to introducing a new, more accurate labour data series by next year.
However, in December Sir Ian Diamond, national statistician and leader of the ONS, cautioned it may not happen until 2027.
Sir Robert Chote, chair of the UK Statistics Authority, said: “This review is an opportunity to help ensure that the ONS can deliver of its best in what is a challenging external environment.”
