The UK’s statistics watchdog has ordered the Office for National Statistics (ONS) to urgently overhaul its data collection methods within the next four weeks, amid growing alarm over the reliability of official economic figures used to shape government and Bank of England decisions.
The intervention comes after a series of delays and data quality concerns that have prompted widespread criticism from economists, policymakers and MPs. The Office for Statistics Regulation (OSR), which monitors the quality of official data, has demanded that the ONS publish a fully-resourced improvement plan to “restore confidence” in its surveys.
It follows growing frustration over missed publication deadlines for key data, including trade, producer price inflation, and services inflation figures, as well as long-standing concerns about collapsing response rates to the Labour Force Survey — one of the core measures of the UK jobs market.
Once widely trusted, the Labour Force Survey now has response rates below 20%, down from 50% a decade ago — a decline that has eroded confidence in statistics crucial for assessing employment trends, productivity, and wage growth.
In an interim report, the OSR said there was an “urgent need to modernise” how the ONS collects and manages data, noting the agency is struggling more than international counterparts to recover post-pandemic.
Dame Meg Hillier, chair of the House of Commons Treasury committee, warned that inaccurate data could have real-world consequences for households and businesses. “Wrong decisions made by these institutions can mean constituents defaulting on mortgages or losing their livelihoods,” she said.
“We know that these figures, on which decision makers rely, are unreliable — and that is a huge problem,” Hillier added. “The Treasury cannot confidently assess employment levels, and the Bank of England may be making interest rate decisions without an accurate picture of the economy.”
ONS statistics are used by the Bank of England and the Office for Budget Responsibility (OBR) to guide critical decisions — from setting interest rates to shaping fiscal policy. Concerns have grown that decisions affecting millions could be based on flawed or incomplete data.
The OSR acknowledged that the ONS had made progress in 2025 in improving survey response rates and integrating new data sources — including VAT records and rail and rental prices — into national accounts and inflation statistics. However, it criticised the slow adoption of administrative data across government, citing cultural and practical challenges.
It also highlighted broader issues with both social and business surveys, warning that declining engagement poses a “significant quality issue” that could “significantly impact” the trustworthiness of the UK’s economic indicators if left unaddressed.
“Inadequate investment” in survey collection and outdated working practices were identified as central causes of the ONS’s struggles, with the regulator demanding a clear plan for prioritising funding and improving data quality over the next three months.
In a statement, an ONS spokesperson acknowledged the seriousness of the situation: “We recognise and share concerns about data quality and are addressing these as a matter of urgency. Our new strategic business plan includes a renewed focus on our core economic and population statistics.”
The regulator is expected to review the ONS’s full response this autumn and publish its final assessment. For now, the message is clear: without swift and decisive reform, the credibility of Britain’s official statistics — and the policies they influence — remains at risk.
Jamie Young
Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.