UK regulator gives thumbs down to household wealth statistics
The suspension of accredited status for the data by the Office for Statistics Regulation comes as the ONS is under investigation by the government over long-running problems with labour market data and follows a significant error in April's inflation data and the suspension of producer price figures.
"Declining response rates and a lack of investment have significantly impacted the quality of the survey data, which measures the financial wellbeing of households across Great Britain," the regulator said.
The most recent version of the wealth data, published in January, stated that the median British household had wealth of 293,700 pounds ($397,552), with the top 10% of households being worth at least 1.2 million pounds and the bottom 10% under 16,500 pounds.
The regulator said the survey, which began in 2006, had provided "crucial economic data on assets, savings, debt and retirement planning that informs state pension levels, academic research, and both monetary and fiscal policy development."
The regulator said it had given the ONS instructions on how to improve the data and expected a progress report in September.
Declining response rates lie at the heart of the problems with the ONS' Labour Force Survey - used to calculate the unemployment rate and inactivity in the labour force, key data points for the government and the Bank of England.
The BoE and the regulator have said the fall in responses to the often lengthy ONS surveys appeared sharper than in other countries which collect similar data.
($1 = 0.7388 pounds)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
18 minutes ago
- Daily Mail
Retail sales up - but confidence weakens as Britons fear tax hikes
Retail sales momentum returned last month as consumer spending and high street footfall was boosted by record-breaking June temperatures. However, confidence weakened as Britons sensed 'stormy conditions ahead' amid reports the Chancellor is considering tax hikes in the Autumn Budget. Official data published by the Office for National Statistics confirmed evidence of improved retail sales for the month, with volumes up 0.9 per cent in June after plunging 2.8 per cent in May. The ONS attributed the boost to strong sales of drinks, both alcoholic and non-alcoholic, as well as clothes and car fuel, as England recorded its hottest June on record and the wider UK enjoyed its second warmest. However, the increase was smaller than economist forecasts of 1.2 per cent for the month, reflecting the weight an inflation rate of 3.6 per cent continue to place on British consumers. Consumer confidence down Separate data published on Friday further demonstrated the cautious mood that continues to hang over British consumers as they prepare for potential tax hikes in Autumn. The closely-watched GfK consumer confidence index dipped to -19 for July, from a six-month high of -18 in June. However, this is better than forecasts of a decline to -20. Economists polled by Reuters had mostly expected a reading of -20. Neil Bellamy, consumer insights director at GfK, said: 'The data suggests that some people may be sensing stormy conditions ahead. 'With speculation growing over possible tax rises in the Autumn Budget , and price pressure contributing not just to higher inflation already but also to the likelihood of worse inflation to come, the news is worrying.' Weaker consumer confidence also coincides with the 26th consecutive month of real income growth, according to Asda's income tracker, which showed 3.7 per cent for June. Analysts at Shore Capital said: 'All things being equal, one would expect to be reflected in a loosening on customers purse strings. 'This contradiction again highlights the uncertain and fragile nature of the consumer economy in the UK at this time. 'The pressures households felt during the cost of living squeeze in 2022-23 will not be soon forgotten and so as long as the national rhetoric remains one of weak growth, high debt and higher taxes we expect households to remain nervous.' The pound fell roughly 0.3 per cent against the euro and US dollar on Friday morning, to around £1.15 and £1.35, respectively, reflecting greater expectations of a Bank of England interest rate cut next month.
Times
an hour ago
- Times
Close Brothers sells Winterflood for £104m
One of the best-known players in the London stock market is changing hands after the owner of Winterflood Securities agreed to sell the market-making firm for about £104 million. The troubled merchant bank Close Brothers said on Friday that it would offload the equities business to Marex, a British broker focused on commodities that is listed in the United States. The sale comes two years after the death at 86 of Brian Winterflood, a veteran of the British stock market, who set up his firm 37 years ago. The late City grandee was a champion of share dealing in smaller companies whose career spanned the golden age of the trading floor before the rise of electronic dealing, an innovation he also seized upon. He entered the market in 1953 as a messenger for a stockbroker, lived through the Big Bang deregulation of the Square Mile in 1986 and two years later founded the market-maker that bears his name, which was sold to Close Brothers in 1993. A spokeswoman for Marex said it planned to keep the Winterflood brand. The London-listed Close Brothers, itself a venerable name that can trace its roots to 1878, has been engulfed in turmoil since January last year when the Financial Conduct Authority began an inquiry into car loans. There is speculation that the motor finance industry will be forced to pay out tens of billions of pounds in compensation to borrowers, although this will hinge partly on a Supreme Court ruling expected next week. Motor finance is a big part of Close Brothers' business and it has taken a series of emergency actions to bolster its capital position by more than £400 million to prepare for the scandal's fallout. These included suspending dividends and selling its asset management division. Offloading Winterflood leaves Close Brothers focused on specialist lending and will increase its common equity tier one capital ratio, a measure of balance sheet strength, by about 30 basis points to 14.3 per cent when the deal goes through, and then by a further 25 basis points later.
Daily Mail
an hour ago
- Daily Mail
Close Brothers sells Winterflood as it slims down ahead of car finance ruling
Close Brothers has sold market maker Winterflood as part of a simplification drive ahead of an imminent ruling on compensation related to the motor finance commissions scandal. London-based financial services group Marex will buy Winterflood for just under £104million in a deal set to complete early next year. Close Brothers said the sale, which follows the agreed disposal of Close Brothers Brewery Rental last week, will help 'simplify' the business, and 'enhance operational efficiency and drive sustainable growth'. Winterflood is a leading equity market maker in the UK, offering a range of trading services to institutional investors, retail brokers and other financial institutions. Close Brothers, which sold its asset management business in February, told shareholders on Friday now 'is the right time to sell Winterflood and focus on the group's core lending activities' as it continues 'actively evaluating its portfolios to ensure that returns are maximised'. Boss Mike Morgan said the Winterflood sale 'marks another important step in simplifying the group to focus on our core specialist lending business'. It comes amid a looming decision on potential compensation payments related to the motor finance commissions scandal from the Supreme Court. Close Brothers shares have been back in favour this year amid growing expectations that total redress payments will not be as large as initially feared. The shares added more than 9 per cent on Friday morning to 450.6p, taking 2025 gains to around 93 per cent. However, the shares remain around 13 per cent lower over the last year and more than 70 per cent below their April 2021 peak, reflecting continued concerns about the lender's exposure to potential compensation payments. Gary Greenwood, equity research analyst at Shore Capital, said Close Brothers had obtained a 'decent price' for Winterflood, which 'in recent times has been operating around a break-even level due to a combination of cyclical and structural factors'. He added: 'This means the group should have plenty of headroom in its capital ratios prior to the conclusion of the Supreme Court's judgement on motor finance commissions and subsequent FCA interpretation. 'To the extent that any excess capital is available after this, we would expect this to either be reinvested in faster and higher returning parts of the business or returned to shareholders. We will update our forecasts in due course. 'We currently have a HOLD recommendation on Close Brothers' shares with a fair value of 370p, being below the current share price albeit on a conservatively struck basis.'
