This report, produced by the Fraser of Allander Institute, provides a comprehensive technical report of how the Office for National Statistics (ONS) measures Non-Profit Institutions Serving Households (NPISH) within the UK National Accounts. The NPISH sector – comprising charities, trade unions, political parties, and educational institutions – plays a critical but often under-recognised role in the UK economy. However, existing methods for estimating the sector’s economic contribution are limited in scope and transparency, particularly outside of England and Wales.
The report provides a detailed breakdown of the four stages of the ONS NPISH measurement framework: data processing, NPISH Local, Unbalanced, and Balanced systems. Each stage involves distinct inputs, processing techniques, and outputs. Key external data sources include the National Council for Voluntary Organisations (NCVO), the Higher Education Statistics Agency (HESA), the UK Trade Union Certification Officer, and the Electoral Commission. These inputs are processed, mapped to National Accounts, classified using a market test (for charities), and grossed to produce national- level estimates of NPISH activity.
