United Kingdom

Title: Expenditure and food Survey

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Office for National Statistics of 1-Drummond Gate, phone: 00 44 207 533 5760, fax: 00 44 207 533 5330, e-mail: bev.botting@ons.gov.uk.
Data have been collected by household survey since 1953.

2. Purpose and coverage

The following purposes are considered to be very important or of some importance:

• to obtain weights for consumer price index
• to estimate household expenditure for national accounts
• to study the general structure of household incomes/expenditures
• to study income/expenditure patterns of disadvantaged groups, including pensioner households, single parent households, etc
• to study income/expenditure disparities among socio-economic groups
• to study consumer behaviour among socio-economic groups
• for general poverty and/or income distribution studies
• to study effects on income and expenditure of policy changes, especially tax changes
• for market research purposes

Geographic coverage: National with the following geographic areas excluded: excluding Scottish offshore islands and the Isles of Scilly .

Population coverage:
The following types of household are included in the data collection:

• one person private households
• private households with more than one person
• diplomatic households in the country
• households of other foreigners in the country
• armed forces residing in private housing within military base
• armed forces residing in private housing outside military base
• nomadic and other households difficult to reach: if living in private households with a postal address

The following types of household are excluded in the data collection:

• those in collective housing (such as long term hospitals, prisons, monasteries, military quarters)
• non-resident households of nationals (households of nationals located abroad)

Units:
Dwelling units are used in the sample selection and are characterised by:

• street address
• postcode sector

Data are recorded for the household unit which is characterised by:

• one person units
• two or more people living together:
  • sharing a single dwelling or compound
  • sharing a common budget for (at least) food and housing expenditures

Data are recorded for the consumer unit, expenditure unit or spending unit which is characterised by:

• two or more people:
  • living in the same household
  • sharing a single dwelling or compound
  • sharing a common budget for (at least) food and housing expenditures

Unit members: ¹ Usual residents are always included as unit members. Visitors (not usual residents) temporarily living in the dwelling are included, if staying continuously for more than 1 months. more than 1 month from the start of record keeping. Domestic staff living in same dwelling/compound are included in the unit. Renters living in same dwelling/compound are included in the unit. Boarders living in same dwelling/compound are included in the unit.

Head of unit:
The concept of reference person is used in this survey and is characterised by:

• main income earner

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 04/01 to 03/02. These data are collected in the period from 04/01 to 03/02. This survey is conducted continuously. The statistics are published annually.

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are enumeration area/district, address and household respectively.

Stratification:
Areas/districts were stratified using the following criteria:

• geographical regions

Households/Consumption Unit, Income Unit, Family Unit were stratified using the following criteria:

• social class of the head

Other units were stratified using the following criteria: car ownership. The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were postal sector and none respectively. Primary Sampling Units (PSU) were selected using probability proportional to size. The sample size was 12000 households or other units and 7.473 interviews. The overall response rate for the survey was 62.2 percent. Errors/biases were minimized by using an increased sample size.

Enumeration procedure: Enumeration uses a single round survey design in which each reporting unit is enumerated only once. The sample is not divided into representative sub-samples. No action is taken to select a smaller set of reporting units for more detailed questioning.

DATA COLLECTION, CONCEPTS, DEFINITIONS AND CLASSIFICATIONS

5. Income data

Income data are collected. Receipts do not have to be regular and recurring to be considered as income. Income excludes receipts resulting from the sale or reduction of assets and/or from incurring liabilities. Exceptions are proceeds from sale of houses, cars, furniture. Income excludes receipts that are not currently available to the unit.

The following receipts are collected separately:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• employer social security contributions
• employee social security contributions
• employee income in-kind provided free or subsidized: housing , excluded for other reasons
• employee income in-kind provided free or subsidized: meals , excluded for other reasons
• employee income in-kind provided free or subsidized: car/transportation , excluded for other reasons
• employee income in-kind provided free or subsidized: goods or services produced by employer , excluded for other reasons
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption , gross of inputs, excluded for other reasons
• services produced for own consumption , gross of inputs , excluded for other reasons
• services from owner-occupied dwellings
• services from other consumer durables (net)
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , gross of expenses
• rents (payment received for un-produced assets e.g. land)
• royalties
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• food subsidies
• other social insurance benefits
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• regular support received from non-profit institutions serving households: goods and services
• regular support received from non-profit institutions serving households: free dwelling
• regular support received from non-profit institutions serving households: subsidized dwelling
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular inheritances or trusts
• regular inter-household transfers received from: regular cash gifts
• regular inter-household transfers received from: free dwelling
• regular inter-household transfers received from: subsidized dwelling

The following receipts are not collected:

• goods produced for barter
• services produced for barter
• stock consumed from unincorporated enterprise
• education-related allowances
• medical reimbursements
• regular inter-household transfers received from: regular in-kind gifts
• regular inter-household transfers received from: regular free services
• social transfers in kind: medical services
• social transfers in kind: public education
• social transfers in kind: transport subsidies
• social transfers in kind: cultural and recreational services
• social transfers in kind: others

The following receipts are classified as income from paid employment:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• employer social security contributions
• employee social security contributions

The following receipts are classified as income from self-employment:

• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises

The following receipts are classified as other income but not employment-related:

• termination and redundancy payments
• services from owner-occupied dwellings
• services from other consumer durables (net)
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , gross of expenses
• rents (payment received for un-produced assets e.g. land)
• royalties
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• food subsidies
• other social insurance benefits
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• regular support received from non-profit institutions serving households: goods and services
• regular support received from non-profit institutions serving households: free dwelling
• regular support received from non-profit institutions serving households: subsidized dwelling
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular inheritances or trusts
• regular inter-household transfers received from: regular cash gifts
• regular inter-household transfers received from: free dwelling
• regular inter-household transfers received from: subsidized dwelling

The following receipts are excluded for other reasons:

• employee income in-kind provided free or subsidized: housing
• employee income in-kind provided free or subsidized: meals
• employee income in-kind provided free or subsidized: car/transportation
• employee income in-kind provided free or subsidized: goods or services produced by employer
• goods produced for own consumption , gross of inputs
• services produced for own consumption , gross of inputs

The following receipts are collected using the last 12 months as the reference period:

• services from owner-occupied dwellings
• services from other consumer durables (net)
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , gross of expenses
• rents (payment received for un-produced assets e.g. land)

The following receipts are collected using the 'last payment' and 'period covered':

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• employer social security contributions
• employee social security contributions
• employee income in-kind provided free or subsidized: housing
• employee income in-kind provided free or subsidized: meals
• employee income in-kind provided free or subsidized: car/transportation
• employee income in-kind provided free or subsidized: goods or services produced by employer
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption , gross of inputs
• services produced for own consumption , gross of inputs
• royalties
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• food subsidies
• other social insurance benefits
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• regular support received from non-profit institutions serving households: goods and services
• regular support received from non-profit institutions serving households: free dwelling
• regular support received from non-profit institutions serving households: subsidized dwelling
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular inheritances or trusts
• regular inter-household transfers received from: regular cash gifts
• regular inter-household transfers received from: free dwelling
• regular inter-household transfers received from: subsidized dwelling

Income data were collected separately for each person receiving income. Components of income for an individual were collected directly from the individual. Negative values (business losses) were excluded when computing self-employment income.²

6. Expenditure data

Data collection method:
Diaries are used to collect expenditure data and are maintained for two weeks.

Diaries are used to collect expenditure on the following items:

• food
• alcohol, tobacco
• other household non-durables (such as newspapers, batteries)
• clothing, footwear
• other personal non-durables (such as perfumes)
• household services (such as plumber)
• personal services (such as driving lessons, haircuts)

Interviews are used to collect expenditure data with the respondent completing the interview by a mix of recall and using documentation.

Data for the following expenditure items are collected by referring:³

• to the last payment for that expenditure:
  • housing
  • other durable goods

Data for the following expenditure items are not collected by interview because they are collected by diary:

• food
• other household non-durable goods
• clothing, footwear
• other personal non-durable goods
• households services
• personal services

The following types of expenditure items are classified as 'Household consumption expenditure':

• non-durable goods purchased
• durable goods purchased (except housing)
• mortgage repayments, including interest
• services of owner-occupied housing
• income in-kind receipts of goods
• income in-kind receipts of services
• own produced non-durable goods
• own-produced durable goods
• own-produced services
• services from durables owned (except housing)
• in-kind goods received from other households
• in-kind services received from other households
• financial services (including fees for financial advice, brokerage fees)
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , gross of winnings
• out of pocket health expenditure , gross of claims
• out of pocket education expenditures , gross of refunds
• out of pocket transport expenditures
• housing maintenance, minor repairs
• regular cash payments to others outside the household
• non-regular cash payments to others outside the household
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• valuables⁴ : (4)

The following types of expenditure items are classified as 'Non-consumption household expenditure':

• major repairs, conversions and extensions to owner-occupied housing
• interest payments (excluding mortgage interest payments)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , gross of claims
• life insurance premiums , gross of claims
• compulsory transfers to governments (e.g. contributions to government old age and disability insurance program, taxes)
• investment-related expenditures (e.g. purchase of shares/stocks)

The following types of expenditure items are classified as 'Non-household expenditure':

• occupational expenditures
• other business-related expenditures

The following types of expenditure items are excluded due to measurement problems:

• purchase price of owner-occupied housing
• social transfers in-kind of goods and services from government and non-profit institutions serving households
• expenditure abroad

The following types of expenditure items are collected on an 'acquisitions' basis:

• durable goods purchased (except housing)

The following types of expenditure items are collected on a 'use' basis:

• income in-kind receipts of goods
• income in-kind receipts of services
• own produced non-durable goods
• own-produced durable goods
• own-produced services
• in-kind goods received from other households
• in-kind services received from other households

The following types of expenditure items are collected on a 'payments' basis:

• non-durable goods purchased
• mortgage repayments, including interest
• services of owner-occupied housing
• major repairs, conversions and extensions to owner-occupied housing
• services from durables owned (except housing)
• interest payments (excluding mortgage interest payments)
• financial services (including fees for financial advice, brokerage fees)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , gross of claims
• life insurance premiums , gross of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , gross of winnings
• out of pocket health expenditure , gross of claims
• out of pocket education expenditures , gross of refunds
• out of pocket transport expenditures
• housing maintenance, minor repairs
• regular cash payments to others outside the household
• non-regular cash payments to others outside the household
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• valuables⁴ : (4)
• compulsory transfers to governments (e.g. contributions to government old age and disability insurance program, taxes)
• investment-related expenditures (e.g. purchase of shares/stocks)
• occupational expenditures
• other business-related expenditures

Classification: COICOP is used for classifying expenditure and has an unspecified number of separate categories at the finest level.

7. Other Data Collection Issues

The following other topics are covered:

• demographic characteristics
• employment status of members
• occupation of members
• ownership of selected durable goods
• housing characteristics
• savings

Households are requested to indicate whether durable goods are new or second-hand when their acquisition is recorded.

Non-response: There is no substitution for non-response, whether by non-contact or by refusal.

Non-response is reduced using the following measures:

• more than one repeat visits
• monetary rewards

Reporting errors are reduced using the following measures:

• careful instrument design
• adequate cues or props for prompting
• quality control

DATA PROCESSING, ANALYSIS AND DISSEMINATION

Answers are not pre-coded on data collection forms, but are coded by the interviewers (data collectors).

The responses are edited by the following:

• interviewers, data collectors
• office staff

Extreme values are retained without change. In-kind receipts and consumption of own production are included in the estimates. In-kind receipts are valued using: the imputed in office processing using market prices. Consumption of own production is valued using: the imputed in office processing using market prices.

Treatment of owner-occupied housing: Values of owner-occupied housing are not included in the total income/expenditure estimates.

Treatment of selected groups/values in analysis: Some households/units are excluded from analysis because of incomplete response. Missing values are imputed only on some occasions if not main shopper. Supplementary sources are not used to adjust estimates for under- or over-reporting. No groups are excluded from data analysis.

Weighting:
Weighting factors are used to adjust for:

• sampling
• non-response

Sampling errors: Sampling errors are computed for all aggregates and these sampling errors are published.

Tabulation and Analysis: Statistics are presented showing averages per week and statistics are analysed and tabulated for households only.

The following classifications are used for tabulation and analysis of income statistics:

• age of reference person or head of household
• occupation of reference person or head of household
• other characteristic of reference person or head of household, tenure, geographical location
• income percentiles, quintiles
• absolute income groups
• household size
• structure of household
• other characteristic of household, tenure
• other classification, social class,economic activity, ownership of consumer durables

The following classifications are used for tabulation and analysis of expenditure statistics:

• age of reference person or head of household
• occupation of reference person or head of household
• other characteristic of reference person or head of household, tenure, geographical location
• income percentiles, quintiles
• expenditure percentiles
• expenditure classes in monetary terms
• household size
• structure of household
• other characteristic of household, tenure
• other classification, social class,economic activity, ownership of consumer durables

Documentation and Dissemination:
Published survey reports: family Spending, 2001/2002

Additional statistics (or special tables on request) are available for public use, with charges (charged on an hourly rate).

Separate tables are published for the following special population groups:⁵