Reflections on ESCoE’s Wealth and Assets Workshop
By Paul Mizen and Darren Morgan
ESCoE and Experian recently ran a workshop on developing wealth and assets data for the UK.
The event brought together experts from Experian, the Office for National Statistics, academia and other relevant organisations.
In this blog, event organiser and ESCoE Research Associate Paul Mizen and ESCoE Engagement Director Darren Morgan reflect on the event and the future of wealth and assets data in the UK.
The Objective: Enabling better decision-making
We began with a clear objective: to explore how existing data on consumer savings, investment and wealth could be improved. The aim was to enable better decision-making across central and local government, support commercial organisations, and strengthen academic research in the field of economic measurement.
Multiple perspectives
One of the most valuable aspects of the event was the opportunity to hear from such a diverse group of well-informed individuals – people who both collect and use data on wealth and assets in very different ways. The range of perspectives brought real depth to the discussion.
The broad landscape of measuring wealth and assets
When looking at the broad landscape of measuring wealth and assets, the first word that comes to mind is complexity. Over the past 20 years, society has changed the way it manages finances and plans for long-term security, making the measurement challenge even greater.
A clear imbalance exists in the availability of data. On credit and debt, the evidence base is strong; on assets and liabilities, it is far weaker. That is no accident. In credit and debt markets, there are significant benefits in participants understanding the system as a whole, which creates strong incentives to share information. In the field of assets and liabilities, those incentives are far less obvious. The key question is therefore how can we encourage and reward the “players” here to make their data more available.
Are administrative data or surveys the answer?
Another issue often mentioned is whether administrative data or surveys are the answer. We can discuss whether this is the correct way to frame the debate but it may be better to consider how each can complement the other and how best to bring them together to maximise value. There are improvements to surveys already on the way, but it will take time before these make a real difference.
Incentivising information sharing
The workshop quickly homed in on a central challenge: how do we incentivise the sharing of information while accounting for the complexities involved? Progress here will require joint efforts from both public and private sector organisations, supported by common standards, regulatory frameworks and household permissions. Not all these factors are in our control, but there are areas where we can act. This includes through improved surveys, better use of administrative and transactional data, and research that identifies where new evidence would make the greatest impact.
Looking forward
There is some excellent and important research already being done in the UK and internationally, with researchers being innovative in the way that they secure and use data. But so much more could be achieved if we improve the availability of data on wealth and assets.
Given the importance of this field, the potential prize is significant and that is why there is real value if we can turbo-charge the effort. The workshop heard three viable options to help do that: the Government (as part of their data strategy), the Financial Conduct Authority (using their regulatory powers to support), and the UK Statistics Authority, using the legislation available to support data sharing, alongside their convening ability to bring people together.
Thank you to Experian who sponsored the event and to all speakers and attendees for helping to make it such a success.
ESCoE blogs are published to further debate. Any views expressed are solely those of the author(s) and so cannot be taken to represent those of ESCoE, its partner institutions or the Office for National Statistics.