Updated 20 December 2012
DWP Productivity technical description
| Short title | DWP Productivity Measure |
|---|---|
| Technical definition | Output (cost-weighted activity index) divided by input (deflated expenditure), in-line with National Accounts convention for public service output and productivity measurement |
| Rationale | By relating the output that the Department produces with the volume of resources used in producing it, the productivity measure provides information on whether the Department is delivering relatively more for less, thus demonstrating whether the Department is delivering genuine efficiency savings in implementing the spending review settlement. |
| Formula | Indicator results calculated as follows: Productivity = Output / Input Productivity is expressed as per cent change from the previous year Worked Example: If output increases by 1% whilst input decreases by 3% then the productivity index changes as: 100 x 101/97 = 104.1 – a productivity gain of +4.1% |
| Start date | Already published by DWP, with data available from 2002/03 onwards |
| Good performance | Over the long term the productivity measure should increase to demonstrate that genuine efficiencies have been delivered |
| Behavioural impact | No – collecting the data will not have any behavioural impact. The indicator is at too high a level to set operational targets or to influence operational behaviour. |
| Comparability | The measure is now well established in the Department, having been developed in accordance with the methodology of the Atkinson Review. In 2009 and 2010 the Office for National Statistics published a comparison of productivity across the public sector. The DWP productivity measure is based on this methodology. |
| Collection frequency | Annually. |
| Time lag | Final figures available approximately six months after the end of the financial year, provisional figures available earlier. |
| Data type and source |
Data collected from DWP administrative systems, including Departmental Activity Based Management and Management Information System Programme |
| Robustness and data limitations | The DWP productivity measure is now well established in the Department, having been developed in accordance with the methodology of the Atkinson Review. the Office for National Statistics have confirmed it is in line with standard convention and the National Audit Office have described it as "an accredited methodology". |
| Return format | Expressed as a percent increase in productivity relative to the previous year. |
| Geographical coverage | Geographical coverage is at National – GB level |
| How indicator can be broken down | Productivity measure at national level. It gives an aggregate picture of how efficiently the Department delivers its outputs and can be broken down into input and output components. Additional breakdowns are not available or appropriate. |
| Further guidance | Additional notes on methodology: |
