Deriving a reliable measure of household income – DWP Joanna Littlechild Head of Surveys 10 February 2015

What is the Family Resources Survey? The Family Resources Survey (FRS) is an annual household survey which collects detailed information on the income and circumstances of individuals living in private households. The FRS collects data from a representative sample of 20,000 UK households across the financial year (April-March). Interviews conducted face-to-face by a Consortium consisting of ONS/Nat Cen and NISRA in NI. The survey is sponsored by DWP and designed to meet DWP needs. It has been running since October 1992. EU-SILC has been part of FRS since 2012

FRS data collection to dataset production and publication The questionnairre is key to the quality of any outputs. We review the content annually. Specialist software (BLAISE) used to collect the information during the interview. Valued and experienced fieldforce to achieve effective interviews. Data processing – benefits editing, imputation, validation checks, user testing, grossing

Using FRS Survey Data The FRS is a household survey and so subject to the nuances of using survey data, including: SAMPLE SIZE SAMPLING ERROR SURVEY DESIGN NON-RESPONSE ERROR SURVEY COVERAGE

Pensions Policy Institute Family Resources Survey Who uses the FRS? Outside Government Government (OGD) Pensions Policy Institute HMT UK Data Service ( UKDS ) HMRC Northern Ireland ( DSDNI ) DWP Households Below Average Income New Policy Institute Scottish Government Pensioner Incomes Institute of Fiscal Studies ( IFS ) Communities and Local Government Policy Simulation Family Resources Survey EU Statistics on Income and Living Conditions Housing Policy Division Pensions analysts News and Media

Households Below Average Income Provides an analysis of the income distribution Data on income inequality Different population groups Different measures of poverty Numerous breakdowns into sub groups, characteristics All based on good quality FRS data

What is Income Poverty? The UK does not have an official definition of poverty – cross-sectional measures are: Relative Low Income The proportion of population living in households where income is less than 60 per cent of median household income Absolute Low Income The proportion of population living in households where income in real terms is less than 60 per cent of median household income in 2010/11 Material Deprivation Indication that a family lacks the ability to purchase key goods or services – questions that can only be asked in a survey

HBAI Reliable income statistics Analysis based on large-scale household survey Data collected on detailed income components, adjustments for those with high incomes Independent checking of HBAI dataset – additional quality assurance step Improved commentary and publication over the last 3 years. Last year worked closely with the National Statistician’s Good Practice Team. Comprehensive analysis published on gov.uk