Abstract

Public services currently equate to one-fifth of the output of the UK economy and there is an ever increasing need to report on performance and evidence its contribution to the economy and value for the public purse. Therefore, it’s vital that statistics in this area provide a true reflection of public service performance and productivity levels are reported as accurately and effectively as possible.

Here in the UK, we have been undertaking a public services productivity review looking at the ‘how we measure public sector productivity’ and the Office for National Statistics has been partnering with government departments, academics and others looking to further develop methodology and data sources so measures can be improved.

Measuring and monitoring public service productivity is challenging because there is no direct charge for services that are delivered, unlike the private sector which in comparison is relatively easy where you can simply add up a company’s or sector’s output, and then divide it by the number of workers or hours worked.

Key factors in determining public sector performance and productivity growth, is the use of an inputs and outputs approach however, to go beyond that approach, we have been applying quality adjustments that can help take into consideration the quality of a service. Making quality adjustments to the methodology help to produce more robust and consistent outputs and outcomes of the services provided. Better methods can also make it easier to answer questions like:
- How much improvement to pupil outcomes are schools delivering?
- How has the quality of social security administration changed over time?
- What impact has the Coronavirus (COVID-19) pandemic had on health services?

In this session, we will provide an overview of measuring productivity in the UK and the steps we have taken to improve the methods and metrics on this. We will show the improvements we have made to reporting on public service productivity and the challenges we have as we look to implement updated measures into the UK’s National Accounts.

We would also like to take this opportunity to update the international community on the review and welcome discussion.