sr2010_datasources

8/8/2019 sr2010_datasources

1/20

October 2010

Spending Review 2010Distributional Impact Analysis Data Sources


2/20


3/20

October 2010

Spending Review 2010Distributional Impact Analysis Data Sources


4/20

O fcial versions o this document are printed on100% recycled paper. When you have fnishedwith it please recycle it again.

I using an electronic version o the document, pleaseconsider the environment and only print the pages whichyou need and recycle them when you have fnished.

Crown copyright 2010

You may re-use this in ormation (not including logos)ree o charge in any ormat or medium, under the terms

o the Open Government Licence. To view this licence,visit http://www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the In ormation PolicyTeam, The National Archives, Kew, London TW9 4DU, ore-mail: [email protected].

ISBN 978-1-84532-792-7PU1076


5/20

Spending Review 2010: Distributional Impact Analysis Data Sources 1

ContentsPage

Chapter 1 Distributional Impact Analysis 3


6/20


7/20


1 Distributional Impact Analysis Data SourcesData in tables,charts, text oradditional notes

ONS sourcecode (ifapplicable) Data source Further reference information

Key definitions and data sources for analysis

Demographicinformation(population size,

number ofhouseholds etc.)

FamilyResourcesSurvey

2007-08 and2008-09

Calculations based on demographic data taken fromFamily Resources Survey. Latest data available at:http://statistics.dwp.gov.uk/asd/frs/2008_09/frs_2008_

09_report.pdf

Incomequintile/decileinformation, size ofaverage household

FamilyResourcesSurvey 2007-2008and 2008-09

Calculations based on demographic data taken fromFamily Resources Survey. Latest data available at:http://statistics.dwp.gov.uk/asd/frs/2008_09/frs_2008_09_report.pdf

Expenditureand FoodSurvey 2005-2008

Available at:http://www.statistics.gov.uk/downloads/theme_social/Family_Spending_2007/FamilySpending2008_web.pdf

Households are ordered by their household equivalisedincome and then divided into 10 equally sized groupscalled deciles or 5 equally sized groups called quintiles.

Income quintileand decile analysisof tax, tax creditand benefitchanges

Income quintile and decile analysis has been simulatedusing HM Treasurys tax an d benefit micro-simulationmodel. The model uses data from the Family ResourcesSurvey (FRS 2007-08) and Expenditure and FoodSurvey (EFS) collected between April 2005 and March2008 (future editions of the EFS are to be known as

the Living Costs and Food Survey). The small samplesize of the EFS means that to be able to producerobust analysis three years of data has been pooledtogether. This data is then uprated appropriately toreflect the tax year being modelled. This dataset is thenused to model each households net income under agiven and alternative tax and benefit system. Thedifference between the two results produces thechange in net income for each household. Householdsare then allocated into quintiles/deciles (see entryabove) and the average (mean) change in net incomefor all the households in each quintile/decile is

calculated. The model assumes no changes inbehaviour to employment, income or spending choices.The model assumes 100 per cent take up of tax credits
http://statistics.dwp.gov.uk/asd/frs/2008_09/frs_2008_09_report.pdfhttp://statistics.dwp.gov.uk/asd/frs/2008_09/frs_2008_09_report.pdfhttp://statistics.dwp.gov.uk/asd/frs/2008_09/frs_2008_09_report.pdfhttp://statistics.dwp.gov.uk/asd/frs/2008_09/frs_2008_09_report.pdfhttp://statistics.dwp.gov.uk/asd/frs/2008_09/frs_2008_09_report.pdfhttp://statistics.dwp.gov.uk/asd/frs/2008_09/frs_2008_09_report.pdfhttp://www.statistics.gov.uk/downloads/theme_social/Family_Spending_2007/FamilySpending2008_web.pdfhttp://www.statistics.gov.uk/downloads/theme_social/Family_Spending_2007/FamilySpending2008_web.pdfhttp://www.statistics.gov.uk/downloads/theme_social/Family_Spending_2007/FamilySpending2008_web.pdfhttp://www.statistics.gov.uk/downloads/theme_social/Family_Spending_2007/FamilySpending2008_web.pdfhttp://www.statistics.gov.uk/downloads/theme_social/Family_Spending_2007/FamilySpending2008_web.pdfhttp://statistics.dwp.gov.uk/asd/frs/2008_09/frs_2008_09_report.pdfhttp://statistics.dwp.gov.uk/asd/frs/2008_09/frs_2008_09_report.pdfhttp://statistics.dwp.gov.uk/asd/frs/2008_09/frs_2008_09_report.pdfhttp://statistics.dwp.gov.uk/asd/frs/2008_09/frs_2008_09_report.pdf


8/20

4 Spending Review 2010: Distributional Impact Analysis Data Sources

Data in tables,charts, text oradditional notes


and benefits. Changes in indirect tax assume that thesame quantity of goods and services are purchased andthat all of the increase in indirect tax is passed throughto consumers. The model under-represents the numberof pensioners in the country as the FRS does notcapture people with communal living arrangements.There are known issues with the FRS under-recordingtax credit receipt. For example, seehttp://www.ifs.org.uk/bns/bn70.pdf

Equivalisationmethodology

Equivalisation is a process that adjusts a householdsnet income to take into account the size andcomposition of the household. This reflects the factthat larger households will require a higher net incometo achieve the same economic well-being and standardof living as a household with fewer members. With theexception of child poverty analysis, which follows themodified OECD equivalisation scale (as used in DWPsHouseholds Below Average Income publication), theanalysis here is based on the Before Housing CostsMcClements equivalisation scale.

All net incomes are adjusted in comparison to a couplewith no children, whose equivalised income isnormalised at the same level as their unequivalisedincome. To calculate the equivalised net income for ahousehold, each person is given a factor based on theposition in the household relative to the head of thehousehold and their age. These factors are shown inthe table below. Each household is given an overallfactor by adding the factors for each person. The netincome for the household is then divided by this factorto produce the equivalised net income figure for thishousehold.

Equivalisation factors:Cohabiting head of household 0.61Partner/spouse 0.39Other 2nd adult 0.46Third adult 0.42

Subsequent adults 0.36

Child aged:16-18 0.3613-15 0.27 11-12 0.258-10 0.235-7 0.212-4 0.18 Under 2 0.09

For example, a household with a combined net incomeof 25,000 containing a couple and two children aged11 and 7 years old will have an equivalised net income

of around 17,100. This is calculated as follows:Factor: 0.61 + 0.39 + 0.25 + 0.21 = 1.46Equivalised net income: 25,000 / 1.46 = 17,123
http://www.ifs.org.uk/bns/bn70.pdfhttp://www.ifs.org.uk/bns/bn70.pdfhttp://www.ifs.org.uk/bns/bn70.pdf


9/20




Spending on eachof the mainfunctions ofgovernment, andon Total ManagedExpenditure

HM Treasury SpendingReview 2010

Economicestimates

These figures are calculated as economic estimates,including the effects of assumptions and results fromeconomic analyses that have a material impact, and aretherefore outside the domain of official statistics. Theseare estimated projections of spending in 2010-11.

The classifications used for these projections areconsistent with the outturn statistics published by HMTreasury in the public expenditure outturns NationalStatistics release, Feb 2009, available at:http://www.hm-treasury.gov.uk/national_statistics.htm

Paragraph B.8 B.15: Distributional analysis methodology

Methodology fordistributionalanalysis

See Annex B for detailed explanation of methodologyfor distributional analysis.

Distributional analysis has been estimated using HMTreasurys distributional analysis model. This modeluses data from provided by Departments informed byexternal sources. The model uses a static income andpopulation distribution (based on 2010-11 data).Nominal values are used to calculate spend, deflated to2010-11 prices. Analysis was performed on Englishhouseholds only.

The equivalisationprocess

See section Definitions or data in text, table of charts Equivalisation methodology

Further details ofdistribution ofpublic spendingover the SpendingReview 2010period

Departmental spending over the Spending Reviewperiod was modelled to estimate distributional effects.This distributional analysis was informed byDepartmental data, HM Treasury analysis and externalsources, as detailed below.

Individual local authorities make spending decisions inline with their local priorities. The Spending Review setsthe overall funding for Local Government DEL. InAnnex B, Local Government covers an analysis of adultsocial care and local cultural services delivered by LocalGovernment. Since social care may fall under healthcare provision it is sensible to consider social careimpacts alongside health. This analysis takes intoconsideration the additional funds allocated to socialcare in the Spending Review; that said final decisionsregarding social care budgets will be for LocalGovernment. Services delivered by Local Governmentthat are closely aligned to public goods (e.g. wasteservices) have not been included. Schools funding iswithin the Department for Education analysis.

In June the Government announced 6 billion ofefficiency savings. Those areas it has been possible to model have been included in the baseline to show thecombined impact of the consolidation. This excludes
http://www.hm-treasury.gov.uk/national_statistics.htmhttp://www.hm-treasury.gov.uk/national_statistics.htmhttp://www.hm-treasury.gov.uk/national_statistics.htm


10/20




the devolved administrations, capital, public goods andcentral Government administration.

The analysis does not include expenditure by theDevolved Administrations because decisions on theallocation of the Devolved Block Budgets are mattersfor the Devolved Administrations.

These figures are calculated as economic estimates,including the effects of assumptions and results fromeconomic analyses that have a material impact, and aretherefore outside the domain of official statistics.

Department forBusiness,Innovation andSkills

Apprentices-hip Pay(Fong, B.,Phelps, A.)

2007 survey of earnings by sector, published byDepartment for Innovation, Universities and Skills (nowa part of the Department for Business, Innovations andSkills). Available at:http://www.bis.gov.uk/assets/biscore/corporate/migratedD/publications/D/DIUS_RR_08_05

AdultLearnersResponsiveLearners(2010)

Data taken from Prior Qualifications Survey (PQS) ofAdult Learners Responsive Learners (2010). Anexplanation of the PQS is available at:http://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdf

Train to Gain(2010)

Data taken from Prior Qualifications Survey (PQS) ofTrain to Gain (2010). An explanation of the PQS isavailable at:http://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdf

HigherEducationFundingCouncil forEngland(HEFCE)

Information on Higher Education take-up. Available at:http://www.hefce.ac.uk/pubs/hefce/2010/10_13/10_13.pdf

Department forCommunities andLocal Government

CLG P1EHomelessne-ss returns

Updated quarterly; the latest data in the series isavailable at:http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/publicationshomelessness/

HouseholdsBelowAverageIncome

1994-95 -2008-09

Available at:http://statistics.dwp.gov.uk/asd/hbai/hbai_2009/pdf_files/full_hbai10.pdf
http://www.bis.gov.uk/assets/biscore/corporate/migratedD/publications/D/DIUS_RR_08_05http://www.bis.gov.uk/assets/biscore/corporate/migratedD/publications/D/DIUS_RR_08_05http://www.bis.gov.uk/assets/biscore/corporate/migratedD/publications/D/DIUS_RR_08_05http://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.hefce.ac.uk/pubs/hefce/2010/10_13/10_13.pdfhttp://www.hefce.ac.uk/pubs/hefce/2010/10_13/10_13.pdfhttp://www.hefce.ac.uk/pubs/hefce/2010/10_13/10_13.pdfhttp://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/publicationshomelessness/http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/publicationshomelessness/http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/publicationshomelessness/http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/publicationshomelessness/http://statistics.dwp.gov.uk/asd/hbai/hbai_2009/pdf_files/full_hbai10.pdfhttp://statistics.dwp.gov.uk/asd/hbai/hbai_2009/pdf_files/full_hbai10.pdfhttp://statistics.dwp.gov.uk/asd/hbai/hbai_2009/pdf_files/full_hbai10.pdfhttp://statistics.dwp.gov.uk/asd/hbai/hbai_2009/pdf_files/full_hbai10.pdfhttp://statistics.dwp.gov.uk/asd/hbai/hbai_2009/pdf_files/full_hbai10.pdfhttp://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/publicationshomelessness/http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/publicationshomelessness/http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/publicationshomelessness/http://www.hefce.ac.uk/pubs/hefce/2010/10_13/10_13.pdfhttp://www.hefce.ac.uk/pubs/hefce/2010/10_13/10_13.pdfhttp://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.thedataservice.org.uk/NR/rdonlyres/9B41EF2C-4270-4C8B-8318-E0D0E76A6556/0/FirstnessRatesforSFRVersion2.pdfhttp://www.bis.gov.uk/assets/biscore/corporate/migratedD/publications/D/DIUS_RR_08_05http://www.bis.gov.uk/assets/biscore/corporate/migratedD/publications/D/DIUS_RR_08_05


11/20




HomelessHouseholdsaccepted byLocalAuthorities -quarterly

Updated quarterly; the latest data in the series isavailable at:http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/livetables/

Department forCulture, Media andSport

Taking PartSurvey 2009-10

Available at:http://www.culture.gov.uk/images/research/TakingPart_AdultChild2009-10_StatisticalRelease.pdf

Department ofEnergy and ClimateChange

EnglishHousingSurvey 2008-09

Available at:http://www.communities.gov.uk/documents/statistics/pdf/1479789.pdf

Department forWork and Pensions

HouseholdsBelowAverageIncome 1994-95 -2008-09

Available at:http://statistics.dwp.gov.uk/asd/hbai/hbai_2009/pdf_files/full_hbai10.pdf

Department forEducation

Schools,Pupils andtheirCharacteristi-

cs Jan 2010

Providing all data for schools. Available at:http://www.dcsf.gov.uk/rsgateway/DB/SFR/s000925/SFR09-2010.pdf

Participationin Education,Training andEmploymentby 16-18

Year Olds inEngland June 2009

Available at:http://www.dcsf.gov.uk/rsgateway/DB/SFR/s000938/sfr18-2010v2.pdf

LongitudinalStudy of

YoungPeople inEngland(Wave 5) and

YouthCohort Study(Cohort 13,Sweep 2) 2008

Providing data for Education Maintenance Allowance(EMA). Available at:http://www.dcsf.gov.uk/rsgateway/DB/SBU/b000850/Bull01_2009textvfinal.pdf
http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/livetables/http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/livetables/http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/livetables/http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/livetables/http://www.culture.gov.uk/images/research/TakingPart_AdultChild2009-10_StatisticalRelease.pdfhttp://www.culture.gov.uk/images/research/TakingPart_AdultChild2009-10_StatisticalRelease.pdfhttp://www.culture.gov.uk/images/research/TakingPart_AdultChild2009-10_StatisticalRelease.pdfhttp://www.communities.gov.uk/documents/statistics/pdf/1479789.pdfhttp://www.communities.gov.uk/documents/statistics/pdf/1479789.pdfhttp://www.communities.gov.uk/documents/statistics/pdf/1479789.pdfhttp://statistics.dwp.gov.uk/asd/hbai/hbai_2009/pdf_files/full_hbai10.pdfhttp://statistics.dwp.gov.uk/asd/hbai/hbai_2009/pdf_files/full_hbai10.pdfhttp://statistics.dwp.gov.uk/asd/hbai/hbai_2009/pdf_files/full_hbai10.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SFR/s000925/SFR09-2010.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SFR/s000925/SFR09-2010.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SFR/s000925/SFR09-2010.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SFR/s000938/sfr18-2010v2.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SFR/s000938/sfr18-2010v2.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SFR/s000938/sfr18-2010v2.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SBU/b000850/Bull01_2009textvfinal.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SBU/b000850/Bull01_2009textvfinal.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SBU/b000850/Bull01_2009textvfinal.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SBU/b000850/Bull01_2009textvfinal.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SBU/b000850/Bull01_2009textvfinal.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SFR/s000938/sfr18-2010v2.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SFR/s000938/sfr18-2010v2.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SFR/s000925/SFR09-2010.pdfhttp://www.dcsf.gov.uk/rsgateway/DB/SFR/s000925/SFR09-2010.pdfhttp://statistics.dwp.gov.uk/asd/hbai/hbai_2009/pdf_files/full_hbai10.pdfhttp://statistics.dwp.gov.uk/asd/hbai/hbai_2009/pdf_files/full_hbai10.pdfhttp://www.communities.gov.uk/documents/statistics/pdf/1479789.pdfhttp://www.communities.gov.uk/documents/statistics/pdf/1479789.pdfhttp://www.culture.gov.uk/images/research/TakingPart_AdultChild2009-10_StatisticalRelease.pdfhttp://www.culture.gov.uk/images/research/TakingPart_AdultChild2009-10_StatisticalRelease.pdfhttp://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/livetables/http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/livetables/http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/homelessnessstatistics/livetables/


12/20




Department ofHealth

Non-journalarticle

ONS; TheEffects ofTaxesand BenefitsonHouseholdIncome(Barnard, A. 2009)

Article from the Office for National Statistics. Availableat:http://www.statistics.gov.uk/articles/nojournal/Taxes_Benefits_0809.pdf

Local Government Caresimmodel

Economicestimates

HM Treasury/Department of Health estimates informedby analyses from the Caresim model developed by RuthHancock, Professor of the Economics of Health andWelfare and Head of the Health Economics Group atthe University of East Anglia.

LocalGovernmentFinancialStatisticsEngland 2008-09

Available at:http://www.communities.gov.uk/documents/statistics/pdf/1240022.pdf

Taking PartSurvey 2009-10

Available at:http://www.culture.gov.uk/images/research/TakingPart_AdultChild2009-10_StatisticalRelease.pdf

Department forTransport NationalTravel Survey 2009

Available at:http://www.dft.gov.uk/pgr/statistics/datatablespublications/nts/technical/nts2009technical.pdf

Paragraph B.16: Consumption of public services across income quintiles

the consumptionof services isskewed towardslower incomehouseholds

Income quintiles: See section Definitions or data intext, table of charts Income quintile/decileinformation, size of average household .

Net income: See section Definitions or data in text,table of charts Income quintile/decile information,size of average household

Consumption of public services by quintile calculatedusing HM Treasurys distributional analysis model. Seesection Distributional analysis methodology - Furtherdetails of distribution of public spending over theSpending Review 2010 period

http://www.statistics.gov.uk/articles/nojournal/Taxes_Benefits_0809.pdfhttp://www.statistics.gov.uk/articles/nojournal/Taxes_Benefits_0809.pdfhttp://www.statistics.gov.uk/articles/nojournal/Taxes_Benefits_0809.pdfhttp://www.communities.gov.uk/documents/statistics/pdf/1240022.pdfhttp://www.communities.gov.uk/documents/statistics/pdf/1240022.pdfhttp://www.communities.gov.uk/documents/statistics/pdf/1240022.pdfhttp://www.culture.gov.uk/images/research/TakingPart_AdultChild2009-10_StatisticalRelease.pdfhttp://www.culture.gov.uk/images/research/TakingPart_AdultChild2009-10_StatisticalRelease.pdfhttp://www.culture.gov.uk/images/research/TakingPart_AdultChild2009-10_StatisticalRelease.pdfhttp://www.dft.gov.uk/pgr/statistics/datatablespublications/nts/technical/nts2009technical.pdfhttp://www.dft.gov.uk/pgr/statistics/datatablespublications/nts/technical/nts2009technical.pdfhttp://www.dft.gov.uk/pgr/statistics/datatablespublications/nts/technical/nts2009technical.pdfhttp://www.dft.gov.uk/pgr/statistics/datatablespublications/nts/technical/nts2009technical.pdfhttp://www.dft.gov.uk/pgr/statistics/datatablespublications/nts/technical/nts2009technical.pdfhttp://www.culture.gov.uk/images/research/TakingPart_AdultChild2009-10_StatisticalRelease.pdfhttp://www.culture.gov.uk/images/research/TakingPart_AdultChild2009-10_StatisticalRelease.pdfhttp://www.communities.gov.uk/documents/statistics/pdf/1240022.pdfhttp://www.communities.gov.uk/documents/statistics/pdf/1240022.pdfhttp://www.statistics.gov.uk/articles/nojournal/Taxes_Benefits_0809.pdfhttp://www.statistics.gov.uk/articles/nojournal/Taxes_Benefits_0809.pdf


13/20




Chart B.1: Household consumption of benefits in kind by net equivalised income quintile (per week 2010-11)

Consumption ofpublic services byincome quintiles(s)


Consumption of public services by quintile calculatedusing HM Treasurys distributional analysis model. Seesection Distributional analysis methodology - Furtherdetails of distribution of public spending over theSpending Review 2010 period .


Table B.1: Weighted average annual net equivalised income and benefits in kind by quintile

Weighted averagenet income andbenefits in kind byquintile


Net income information: See section Definitions ordata in text, table of charts Income quintile/decileinformation, size of average household .

Consumption of public services by quintile calculated

using HM Treasurys d istributional analysis model. Seesection Distributional analysis methodology - Furtherdetails of distribution of public spending over theSpending Review 2010 period .


Chart B.2: Household consumption of benefits in kind by net equivalised income quintile in2010-11 and 2014-15 ( per week 2010-11 prices)

Consumption ofpublic services in2010/11 and2014/15distributed byincome quintile


Consumption of public services by quintile calculatedusing HM Treasurys distributional analysis model.

Distribution of public services by department: Seesection Distributional analysis methodology - Furtherdetails of distribution of public spending over theSpending Review 2010 period .

Unmodelled spend: Total DEL figures from SpendingReview 2010, calculated using HM Treasurys


14/20




distributional analysis model.

These figures are calculated as economic estimates,including the effects of assumptions and results from

economic analyses that have a material impact, and aretherefore outside the domain of official statistics.

Table B.2: Table of absolute weekly changes in household benefits in kind by net equivalisedincome quintile

Absolute weeklychange in benefitsin kind


Change in consumption of public services by quintilecalculated using HM Treasurys distrib utional analysismodel. See section Distributional analysismethodology - Further details of distribution of publicspending over the Spending Review 2010 period .


Paragraph B.19: Results based on the policy changes described in this Spending Review

Changes inconsumption ofpublic services as aconsequence ofSpending Review2010


Consumption of public services by quintile calculatedusing HM Treasu rys distributional analysis model. Seesection Distributional analysis methodology - Furtherdetails of distribution of public spending over theSpending Review 2010 period .


Chart B.3: Changes in benefits in kind as a per cent of 2010-11 household consumption ofbenefits in kind

Change in benefitsin kind as apercentage of2010-11consumption ofpublic services byincome quintiles


Consumption of public services by quintile calculatedusing HM Treasurys distributional analysis model. Seesection Distributional analysis methodology - Furtherdetails of distribution of public spending over the

Spending Review 2010 period .


15/20





Paragraph B.29: List of measures that can be modelled

This section setsout the impact onindividuals of thebenefit and tax credit changesannounced in thisSpending Review,along with thecumulative impactof these changesand Budgetmeasures

Methodology: See section Definitions or data in text,table of charts - Income quintile and decile analysis oftax, tax credit and benefit changes.

Not all measures can be reliably modelled due to dataconstraints. The following measures have beenincluded in this analysis:

Personal tax:1,000 cash increase to the PersonalAllowance in 2011-12;2,500 reduction in the basic rate limit andUpper Earnings Limit and Upper Profits Limit in2011-12;Freeze higher rate threshold in 2012-13,keeping upper earnings limit and upper profitslimit aligned with higher rate threshold;Increase Primary Threshold in 2011-12 by 21above alignment with where the personalallowance would have been under plansinherited by this Government;Increase all National Insurance rates by 1

percentage point from 2011-12.

Tax credits:Increase the child element of the Child Tax Credit by 180 above indexation in 2011-12and 110 above indexation in 2012-13;Increase the first and second withdrawal ratesto 41 per cent from April 2011;Remove the baby element from April 2011;Start tapering the family element of Child Tax Credit immediately after the child element iswithdrawn from April 2012;

Remove the 50 plus element of the WorkingTax Credit from April 2012;Increase the Working Tax Credit working hoursrequirement for couples to 24 hours in 2012-13;Reduce the proportion of costs covered by thechildcare element of the Working Tax Creditfrom 80 per cent to 70 per cent from April2011;Freeze the basic and 30 hour elements of theWorking Tax Credit at 2010-11 rates from2011-12 until 2013-14.


16/20




Benefits:Freeze Child Benefit at 2010-11 rates from2011-12 until 2013-14; Remove Child Benefitfrom families where there is at least one adultwith an income above the higher ratethreshold from January 2013;Increase minimum guarantee for PensionCredit by cash increase in Basic State Pensionfor 2011-12;Freeze maximum award of Savings Credit fromApril 2011.

Uprating:Change uprating of benefits and tax credits toCPI from April 2011;Change uprating of Basic State Pension tohigher of CPI, earnings or 2.5 per cent fromApril 2011 except for 2011-12 only uprate byRPI if higher than CPI.

Indirect taxes:Increase the standard rate VAT to 20 per centin January 2011;Reverse cider duty increase at March 2010Budget in June 2010;

These figures are calculated as economic estimates,including the effects of assumptions and results fromeconomic analyses that have a material impact, and are

therefore outside the domain of official statistics.

Chart B.4: Impact of Spending Review and Budget measures (including pre-announcements)in cash terms ( per year) by income distribution (2012-13)

Impact of SpendingReview and Budgetmeasures(including pre-announcements) incash terms ( peryear) by income

distribution (2012-13)

Income deciles: See sec tion Definitions or data in text,table of charts Income quintile/decile information, sizeof average household .

Estimates are derived using HM Treasurys tax andbenefit micro-simulation model as described inDefinitions or data in text, table of charts - Income

quintile and decile analysis of tax, tax credit and benefitchanges .


Chart B.5: Impact of Spending Review and Budget measures (including pre-announcements)as a per cent of net income by income distribution (2012-13)

Impact of SpendingReview and Budgetmeasures(including pre-announcements) as

Income deciles: See section Definitions or data in text,table of charts Income quintile/decile information, sizeof average household .

Estimates are derived using HM Treasurys tax and


17/20




a per cent of netincome by incomedistribution (2012-13)

benefit micro-simulation model as described inDefinitions or data in text, table of charts - Incomequintile and decile analysis of tax, tax credit and benefitchanges .


Paragraph B.42: the impact of tax, tax credit and benefit changes

the Office forNational Statisticsand others havesuggested thatexpenditure decilesmay provide amore relevantdistributional splitof households

N/A ONS: TheEffects ofTaxes andBenefits onHouseholdIncome,2008/09(June 2010)

Available at:http://www.statistics.gov.uk/pdfdir/taxbhi0610.pdf

Chart B.6: Impact of the consolidation on households as a per cent of 2010-11 net income(including households benefits in kind)

Impact of theconsolidation onhouseholds as a percent of net income

(includinghouseholdsbenefits in kind)


Tax, tax credit and benefits changes are derived usingHM Treasurys tax and benefit micro -simulation modelas described in Definitions or data in text, table ofcharts - Income quintile and decile analysis of tax, tax credit and benefit changes .

See section list of measures that can be modelled.Additionally, for this 2014-15 analysis, the followingmeasures are also included:

Introducing a cap on total welfare paymentseach benefit unit can receive from 2013-14Limiting Pensions Tax Relief to 50,000 fromApril 2011Introducing objective medical assessments forall DLA claimants from 2013-14Time-limiting contributory ESA to one year forthose in the Work Related Activity Group from2012-13

The final three of these measures are modelled byapportioning to quintiles the Exchequer savings fromthe measures, according to information on thenumbers of people affected in each quintile.

Distribution of public services by department: Seesection Distributional analysis methodology - Further
http://www.statistics.gov.uk/pdfdir/taxbhi0610.pdfhttp://www.statistics.gov.uk/pdfdir/taxbhi0610.pdfhttp://www.statistics.gov.uk/pdfdir/taxbhi0610.pdf


18/20




details of distribution of public spending over theSpending Review 2010 period.



19/20


20/20

HM Treasury contacts

This document can be ound in ull on ourwebsite at:hm-treasury.gov.uk

I you require this in ormation in anotherlanguage, ormat or have general enquiriesabout HM Treasury and its work, contact:

Correspondence TeamHM Treasury1 Horse Guards RoadLondonSW1A 2HQ

Tel: 020 7270 4558Fax: 020 7270 4861

sr2010_datasources

Documents