Separating out Households and NPISH data in the National Accounts Sarah Crocker Household and NPISH Development

Introduction Households and Non-Profit Institutions Serving Households (sectors S.14 and S.15) are currently published together. ESA 2010 requirement to present these sectors as two separate and distinct sectors. Huge policy need, and NPISH sector ~3% of GDP

Who are households? Individuals or groups of individuals as consumers and as entrepreneurs producing market goods and non-financial and financial services (market producers)

What is NPISH? NPISH stands for Non Profit Institutions Serving Households and is defined in ESA10 as: The Sector Non-Profit Institutions Serving Households (S.15) consists of non-profit institutions which are separate legal entities, which serve households and which are private non-market producers. Their principal resources are voluntary contributions in cash or in kind from households... from payments made by general government and from property income. Charities Higher Education Political Parties Religious Orgs Trade Unions Further Education

The Sequence of Accounts Production Account - Output - Intermediate consumption Income Accounts - Compensation of Employees - Taxes and subsidies - Property Income - Social benefits and contributions - Other current transfers Capital Account - Investment grants - Capital transfers - Non-financial Assets Financial Account and Balance Sheet - Currency and deposits - Securities - Loans - Shares

NPISH 9,950 Households 10,000 Data

Total Economy Households and NPISH Combined Residual NPISH Residual Financial Institutions Private Non-Financial Institutions Government Household estimates as a residual Rest of the World Households Data Wealth and Assets Survey NPISH Holdings e.g. Charities Commission Data

Wealth and Assets Survey (WAS) Sample size of around to 40k individuals Looks at the economic well-being of households Gathers information on:  level of assets,  savings and debt;  saving for retirement;  how wealth is distributed among households or individuals Run by ONS and funded by a consortium of OGDs Longitudinal survey but can be used as a cross-sectional survey Each wave of the survey lasts 2 years Limitations – Capturing the ‘super rich’ – Does not provide quarterly data

NPISH data sources Charities Reports submitted to Charities Commission Universities Annual Accounts Government data on Further Education colleges Trade Unions & Political Parties Accounts from regulators Transfers between HH and NPISH – Donations Donated items Transfers from NPISHs to HHs

Impact Ultimately this will be a useful thing Be interested in views on continuity – would it be useful to still have a combined series for context? Saving Ratio will change as a result of HH only data

Any Questions?