OPEN - ESDS

CZI~S AND PUDOSES 1.1
Of all the mny surWYS the Social Sur Wy has conducted, the Family Expenditure
survey is probably the most widely quoted in tha House of ~ns and the most
widely used by go%wnment department as a basis for ●conomic policy decisions. It
is a continuous ●ur vey which the Sociel Eur -y hae conducted since January 1957 for
the Depa-ent of Employment.
Although the FSS has wmy uses, its primary function ie to protide data which foxmn
tha basis for the annual ra viairm of tho ●xpenditure ‘weight-’ of the Index of
Retail Prices. This index, which measuraa the changa in the prices of the mods
and mar vices bau~t & Imuaehold., la pbli.hed monthly in tha Dapar~nt of
Smplcyment 9Gazette’ and is quoted widely in the press and on tel. tieion.
Useful Points to tit omr to tlm public 1.2
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This ●urwy in carried out in connection with the annual ravision of the
axpenditura Waights for the Index of Retai 1 prices. It provides a liet of
goods and services used by moat houeeholda and tha proportions (‘weights’ )
each represmts in the ‘average family’ budget. To co~ile the SPI, a
repreaentati~ selection of items in priced ●ach month by the Department of
Employmnt and the ‘a-rage family’ budgat is recalculated to aee how much
more it ie costing to Imy the name quantity of goo& and mervicen.
The RPI is an ●aaential componant of tha Tax and Price Index (the TPI ) which
combinas into a single index tha changea in both direct tax and retai 1 prices.
‘l’haquantity of goods and serwlcea which people can kuy depends on two
factor a, na~ly (i) their residual income aftar paying income tax and nationa 1
inmurance contributions and (ii) retail pricas. Th TPI ●ncompaasea FxSch
these factora whaream the RPI reflects only prica changca.
Of patiicular interest to the ●lderly is the fact that the ■urm protidee
data on panaioner household expenditure, ie, tha two Retail Price Indicam for
one-parson and two-paraon pansioner households of lim.lted mcane. Theee
indicee shuw hca#p ensioner households arc affected ky price changes and help
form the baaie for policy dacisiona to impro= paneioner benefite. Pensioner
banaf ita are uprate.d each year in relation to the RPI.
Oepartmenta other than ttm Ocpartment of En@~ent una the FES ●n the only
continuous source of informatian on household expenditure and income.
‘fh mu vey shcws to what axtent dif f erant typea of houaeholda contribute to
the State in Inccme Tax, Valua Added Tax and other taxee. It also
demonstrates the ways in which thaaa houaeholda benefit from such thin@ as
education, penaiona, and social services (H M Treaaury and Central statistical
Offica) .
Tlm following ara sorn racent ●xamples of u8es of the FES by gomrnment
department.
i. To examine expenditure on bus farm, train faram -d pri =te Cara bY
households with d.if ferent incotm (Oepartmcnt of Tranaport ).
ii. To examine consumption and ●xpenditure on gas ●nd electricity by
huueeholda ●t dif ferant inccme lernla (Department of Ihi-rgy).
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