Part 2: Well-being reporting in New Zealand and overseas

Commentary on Te Tai Waiora: Wellbeing in Aotearoa New Zealand.

2.1
Providing a picture of New Zealand's well-being is important for understanding what matters to New Zealanders.

2.2
Te Tai Waiora is the Treasury's first report on the state of New Zealand's well-being. In our view, well-being reports should be trustworthy and meaningful so the government, Parliament, and the public can rely on and use the information in them.

2.3
We wanted to better understand the range of well-being reporting in New Zealand and overseas. In this Part, we summarise:

the range of well-being reports in New Zealand;
a selection of well-being reports from other countries;
a selection of well-being reports prepared by international organisations; and
our overall observations.

The range of well-being reports in New Zealand

2.4
There are many different perspectives on well-being, and they are all important to the well-being of a nation. The following provides a simple way of understanding the main differences between individual, community, and national well-being.

2.5
Reports about individual well-being seek to capture the personal sense of satisfaction, happiness, and contentment that an individual experiences. In other words, are they feeling good and functioning well?

2.6
In New Zealand, reports about individual well-being include the New Zealand General Social Survey and the New Zealand Health Survey.¹⁰

2.7
Reports about community well-being seek to capture the collective sense of satisfaction, happiness, and contentment that a group of individuals living in a specific community experience. However, community well-being is more than simply aggregating individual well-being. It also includes social connections through community groups and other relationships.

2.8
In New Zealand, examples of reports about community well-being include the Canterbury Wellbeing Index and the Salvation Army's State of our communities report.¹¹

2.9
Reports about national well-being bring together information about individual and community well-being in a particular country. As with community well-being, reporting about national well-being is more than simply aggregating community and individual well-being. It also includes other analysis, such as the distribution of well-being throughout population groups.

2.10
An example of reporting about our national well-being is Kei te pēhea tātou? A snapshot of New Zealand's wellbeing from Statistics New Zealand.¹²

Other countries' well-being reports

2.11
Many different organisations in many different countries, including from the public and private sectors, prepare reports about national well-being.

2.12
We looked at reports prepared by governments in four countries. These countries prioritise improving their people's well-being and have similar political and economic systems to New Zealand.¹³ The Treasury also reviewed the reports that these countries produce as part of its planning for Te Tai Waiora.

The Wellbeing of Wales report

2.13
The Wellbeing of Wales report is an annual publication that assesses the nation's progress towards achieving the seven national well-being goals set out in the Well-being of Future Generations (Wales) Act 2015.¹⁴ Fifty national indicators show progress towards the seven goals.

2.14
The Wellbeing of Wales report was first published in 2017. It is prepared by the Welsh government's Statistics and Research Unit under the responsibility of the Welsh Government's Chief Statistician. The report complies with the Code of Practice for Statistics. Therefore, it is considered independent of political influence.¹⁵ The report includes intergenerational milestones to show progress towards the national goals.

2.15
The Statistics and Research Unit carries out widespread public engagement and feedback as part of preparing the report and to inform future reports. It publishes the report in multiple formats online, including an "easy to read" version.

Scotland's wellbeing – Delivering the national outcomes

2.16
Scotland sets out its national well-being outcomes in a National Performance Framework. The framework includes 11 national outcomes and 81 indicators that show progress towards those outcomes.¹⁶

2.17
The National Performance Framework Unit reviews Scotland's progress towards achieving these goals and publishes its findings in a report called Scotland's wellbeing – Delivering the national outcomes. These reviews, which must take place at least every five years, involve consulting with communities and the Scottish Parliament. The National Performance Framework Unit published Scotland's first well-being report in 2019. The report is available online and in PDF format.

2.18
The National Performance Framework is also Scotland's well-being framework for the sustainable development goals set by the United Nations.¹⁷ It is intended to support discussions about the country that Scotland wants to be, and the actions needed to get there.

Quality of life in the UK reports

2.19
Since 2010, the United Kingdom's Office for National Statistics has been measuring and reporting on the UK's well-being. In 2022, it began publishing quarterly updates called Quality of life in the UK. It published the latest report in February 2023.¹⁸ The Office for National Statistics is a public service department that is independent of the government.

2.20
The Quality of life in the UK reports use subjective and objective data to track the progress of 44 indicators towards 10 domains of national well-being. These domains include personal well-being, relationships, health, and governance. Although the Office for National Statistics measures and monitors progress towards these domains, the UK does not have any set targets for national well-being.

2.21
The Office for National Statistics publishes the Quality of life in the UK reports online and in PDF format. It also provides a dashboard of indicators and discusses the information's strengths and limitations to accompany the reports.

The Netherlands' Monitor of well-being

2.22
In 2018, the Dutch government asked its Central Bureau of Statistics to prepare an annual report about national well-being, known as the Monitor of well-being.¹⁹ One of the report's aims is to hold the government to account each year. The Central Bureau of Statistics operates independently of the government.

2.23
The Monitor of well-being has eight main themes that describe well-being "here and now", four capitals that describe well-being "later", and two themes that describe well-being "elsewhere" (which looks at the Netherlands' influence on the rest of the world).

2.24
The Central Bureau of Statistics completed the latest Monitor of well-being in 2022. It includes an in-depth analysis of how the report's indicators align with the 17 sustainable development goals.²⁰

2.25
Because the Dutch Parliament and the public use the Monitor of well-being reports for public accountability purposes, the reports have a strong focus on explaining technical ideas in plain language.

Common themes in the well-being reports we looked at

2.26
Independent statistics departments, chief statisticians, or specialised well-being teams in the relevant public organisations prepare the four national well-being reports that we reviewed.

2.27
The reports have changed over time – the latest versions vary considerably, from a short update of about 10 pages to a detailed report of about 200 pages. A variety of background and accompanying material, including data dashboards and summaries, supports the reports.

2.28
The frameworks and indicators in these reports are unique to each country and reflect what is important to its people. Each country uses the reports for various purposes. However, we observed some common themes in the reports' focus and purpose and in the audiences that the reports are prepared for.

The reports' focus and content

2.29
The well-being reports we reviewed had clear and straightforward definitions. This allows the frameworks to bring together the essential features of well-being in a way that provides a clear and common understanding.

2.30
For example, the Quality of life in the UK report defines national well-being as how the UK is doing as individuals, communities, and a nation, as well as how sustainable this well-being is for the future. The Netherlands' Monitor of well-being defines well-being as quality of life and the framework is structured around the quality of life here and now, later, and elsewhere (for people in other countries).

2.31
Most of the reporting about well-being is framed around a single set of "domains" or "goals". Domains usually represent the components of well-being and include the environment, housing, and safety. Goals usually represent national aspirations that depend on the components of well-being and include being healthier or more resilient.

2.32
In all instances, the reports use indicators of well-being to bring the domains or goals to life. The indicators from other countries that we reviewed are wide ranging. They include both subjective and objective measures that address each country's perspectives and diversity.

2.33
For example, Scotland's National Performance Framework has an equalities data dashboard that includes indicators on age, disability, ethnicity, gender, and religion. The Wellbeing of Wales report includes indicators on ethnicity, disability status, marital status, and religion. These indicators are taken from an annual population survey.

2.34
Reports and background material clearly describe the strengths and limitations in the information used to explain well-being and the quality and sources of that information. For example, a background paper for the Wellbeing of Wales report describes the themes covered, the information's strengths and limitations (including any missing data), and the processes used to produce the datasets that inform the report.

2.35
Scotland's National Performance Framework has technical notes on each indicator explaining, among other things, where the National Performance Framework Unit got the data and any specific definitions that the indicator uses in its measurement. A 2022 review by the Finance and Public Administration Committee in Scotland found that data was missing for 21 of Scotland's 81 national indicators.

2.36
In the Netherlands, the Central Bureau of Statistics replaces indicators if the quality of those indicators declines (for example, their accuracy, robustness, timeliness, or relevance). However, it also accepts that some indicators can remain partly incomplete – for example, because surveys are held every two years. A regular process of internal and external peer review supports these decisions.

2.37
We found evidence of processes and reviews that give readers confidence in the information reported. For example, in 2022, the UK's Office for National Statistics reviewed the indicators of national well-being. This review included asking stakeholders what matters most to national well-being and how they use the indicators. It also included surveying the general public about the indicators' relevance.

2.38
The Central Bureau of Statistics in the Netherlands uses the Conference of European Statisticians' recommendations on measuring sustainable development. This provides a substantiated "common language" that defines and describes well-being.²¹

2.39
The latest Wellbeing of Wales report has National Statistics status, which means it has been independently assessed as meeting the highest standards of trustworthiness, quality, and value. The Welsh government also published reports on the quality of the indicators that the Wellbeing of Wales report uses.

2.40
To promote a common understanding and help build a public consensus about well-being, most reports explain how their country's well-being indicators align with the United Nation's sustainable development goals. They also report on progress against their country's sustainable development goals.

2.41
For example, the Netherland's Monitor of well-being includes an analysis of national well-being compared with the nation's sustainable development goal targets. However, a recent report on using sustainable development goal indicators in the Netherlands highlights the difficulties of missing data and finding national indicators to match the sustainable development goals.

2.42
The Wellbeing of Wales report also looks at Wales' contribution to the sustainable development goals and provides data that informs the UK's national review of progress towards the sustainable development goals. The Scotland's wellbeing report explains the National Performance Framework's role as Scotland's framework for meeting the sustainable development goals.

The reports' purpose and use

2.43
All the well-being reports that we reviewed focus on explaining the state and/or progress of their nation's well-being. However, there were various reasons for preparing the reports, including to provide information to the public, inform policy decisions, and hold the government to account. For example, Scotland's wellbeing report brings together evidence and analysis to inform decisions on policy, services, and spending.

2.44
In the Netherlands, the purpose of the Monitor of well-being report is to support the annual scrutiny of the efficiency and effectiveness of the government during the past year, starting on a particular day – called "accountability day".²² Another recently stated intention is to help the Netherlands meet its obligations to report against its sustainable development goals.

2.45
These differences in the purpose of the reports can mean that the way the reports set out the nation's well-being framework differ. For example, Scotland focuses on national performance, which means its framework starts with a set of national outcomes and uses indicators of well-being to show progress in achieving them. Wales has a similar focus on performance against its seven national well-being goals.

2.46
The reasons why a country reports on well-being has a strong influence on how it uses the reported information. Some of the reports and background material that we reviewed discuss how the information is applied in practice.

2.47
For example, a background paper for the Wellbeing of Wales report sets out many different ways it uses the reported information. This includes:

highlighting key messages on Wales' progress;
helping to scrutinise national performance;
supporting central and local government planning, budgeting, and reporting;
measuring progress against the sustainable development goals; and
supporting other measurement frameworks.

2.48
The Scottish government publishes case studies that show where it and non-government organisations have used the well-being framework. This includes, for example, a high-level action plan called Ending homelessness together.²³ The Scottish government also partnered with various non-governmental organisations to develop guidelines for organisations to use the National Performance Framework in their policy making.

2.49
To support the ongoing development of the Quality of life in the UK reports, the UK government published case studies on how it has used well-being information and a list of policy areas where departments are specifically considering well-being.

2.50
The Central Bureau of Statistics in the Netherlands publishes the Monitor of well-being on "accountability day" every year. It also prepares and publishes well-being factsheets to support the budgeting process for government ministries. Members of Parliament use these factsheets to help examine how well-being is considered during the Budget and policy-making process.

The reports' audiences

2.51
The form and content of the well-being reports that we reviewed, and the processes used to prepare them, reflect a focus on engaging with a wide range of people in and outside of government. There is a particular focus on engaging with the general public regularly and reporting in ways that are appropriate to their needs.

2.52
For example, in 2022 the Office for National Statistics surveyed the general public about the relevance of the measures of national well-being in the Quality of life in the UK report. The Office for National Statistics also consulted with the public on the report's accessibility and how best to present national well-being findings and communicate insights. In 2022, the Welsh government's Statistics and Research Unit surveyed the public about its views on how well national indicators mapped onto the well-being goals.

2.53
The Central Bureau of Statistics in the Netherlands told us that it has a strong focus on Parliament and the public as users of the Monitor of well-being. It also said that the report is widely read and attracts good media attention. The Central Bureau of Statistics believes this is because:

the report keeps the language and statistics simple;
the report applies important terms consistently;
reporting annually keeps well-being in the public eye; and
there is one "source of truth" – the Central Bureau of Statistics is the only organisation in the country that prepares information about national well-being.

2.54
The online version of the Monitor of well-being has a simple feedback mechanism for readers to provide comments about the report.

2.55
The Central Bureau of Statistics also recently developed a set of regional well-being statistics. This has proved popular with local communities and is used in local policy making.

2.56
Most well-being reports that we reviewed either use non-technical language or clearly explain technical language. For example, the Scotland's wellbeing report provides explanations of its national goals at the start of the report and when it analyses their progress. The Welsh government publishes a separate "easy-to-read" summary report that has a glossary of "hard words".

2.57
Many of the reports and background papers that we reviewed discuss the quality and origin of the indicators. This helps readers understand and use well-being information.

2.58
For example, the Netherland's Monitor of well-being has a section about the quality and timeliness of the data and how this influences the choice of indicator. A section of the report discusses the possible expansion of datasets into new areas of analysis.

2.59
The Wellbeing of Wales report notes that its target audiences are the Welsh government, the Senedd (or Parliament), the media, and the general public. In 2018 and 2019, the Statistics and Research Unit surveyed those audiences about the well-being report's form and content and how the report could be improved to make it more accessible and suitable for a wide range of audiences.

2.60
As well as preparing easy-to-read reports, the Statistics and Research Unit and the Welsh Government implemented other initiatives so that the reports reach as many people as possible. This includes creating blogs and hosting regular public consultations.²⁴

2.61
The target audience for the Scotland's wellbeing report includes the public sector, businesses, civil society, and communities. Various public surveys have been carried out as part of reviewing and updating the framework. In 2022, Scotland's Finance and Public Administration Committee reviewed the National Performance Framework and asked the public to provide feedback through written submissions and workshops.

2.62
Although some of the well-being reports that we reviewed commented on minority ethnic communities, none of them had well-being frameworks for indigenous communities. However, we are aware that Canada is partnering with indigenous communities to develop national well-being frameworks and strategies.

International organisations' well-being reports

2.63
Organisations such as the United Nations, the World Health Organization, and the Organisation for Economic Co-operation and Development (OECD) also prepare reports about well-being at an international level. These organisations collect data on a standardised range of factors – such as life expectancy, infant mortality, and access to healthcare – to assess and report on the overall well-being of nations around the world.

The United Nations' sustainable development goals

2.64
In 2015, all United Nation members adopted Transforming our world: The 2030 agenda for sustainable development (the 2030 Agenda) and its 17 sustainable development goals. The sustainable development goals represent national and global aspirations for well-being that cover social, environmental, and economic sustainable development.

2.65
Each sustainable development goal has several targets, and each target has a set of global indicators to measure progress. Overall, there are 169 targets and 231 indicators.

2.66
Countries that signed up to the 2030 Agenda (including New Zealand) are expected to establish national frameworks to achieve the sustainable development goals. This can include each country setting targets and indicators that are relevant to that country. As part of its follow-up and review mechanisms, the 2030 Agenda encourages countries to report regularly on their progress towards the sustainable development goals and any lessons learned along the way.

2.67
New Zealand prepared its first Voluntary national review in 2019. The indicators were from Indicators Aotearoa New Zealand. Many of the Living Standards Framework indicators are from Indicators Aotearoa New Zealand.

2.68
We published a report in 2021 about the New Zealand Government's preparedness to implement the sustainable development goals.²⁵ We found that the Government had introduced several important national plans, legislation, policies, and initiatives that had some alignment with the 2030 Agenda, the 17 sustainable development goals, and their targets.

2.69
However, we also found that this was not enough to properly understand how well policies and initiatives contribute towards the sustainable development goals or to identify any gaps. One of our recommendations was for the Government to do more work on improving how the Living Standards Framework aligns with the sustainable development goals.

The Organisation for Economic Co-operation and Development's How's life? approach

2.70
Since 2011, the OECD has published a report called How's life? about every two years.²⁶ The report assesses well-being for people in 37 OECD countries and four partner countries. It is based on a well-being framework that covers 11 "dimensions" of current well-being and four "resources" that help support future well-being.

2.71
The OECD published the latest How's life? report in 2020. It draws from more than 80 indicators, covering current well-being outcomes, inequalities, and resources for future well-being.

2.72
New Zealand's Living Standards Framework and Te Tai Waiora draw heavily on the OECD's framework and indicators. However, the Living Standards Framework has a particular focus on areas that are important to New Zealanders, such as children's well-being and te ao Māori.

Overall observations

2.73
For many years, many countries and international organisations have prepared national well-being frameworks and reported on them. The governments of some countries, such as Ireland, are only just developing national well-being frameworks and publishing reports on them. At the time of finalising this commentary, the Australian Treasury published its first well-being framework and report, called Measuring What Matters.

2.74
Statistics departments, chief statisticians who have some statutory independence from Ministers, or specialist well-being teams in other public organisations prepared the well-being reports that we reviewed. The reports' publishing schedules range from quarterly to at least every five years. The form and content of the reports continue to change in response to changing perspectives and circumstances.

2.75
The reports tell us that what is important to a nation's well-being differs between countries and organisations. There is no one-size-fits-all approach to explaining or reporting national well-being. However, the well-being reports that we reviewed share some themes.

2.76
The way these reports describe well-being starts from a clear (and simple) definition with comprehensive and balanced explanations tailored to the particular country. The frameworks used to help explain well-being are consistent with the purpose of the reports and supported by a wide range of indicators. The credibility of the explanations are supported by appropriate information about the sources of the data, the analysis's strengths and weaknesses, and how the report is being used.

2.77
The well-being reports' objectives include providing information to the public, informing policy decisions, and holding the government to account. Many reports also compare their frameworks and indicators to the sustainable development goals, particularly countries that have adopted the United Nation's 2030 Agenda.

2.78
Preparing the report is usually an opportunity to consult widely and this can involve a process of engaging with the public and other stakeholders during and after the report's preparation. A lot of this engagement is about asking people what they consider important. However, other feedback is also sought – for example, on the potential uses of the well-being information and the accessibility of the report and its findings. As a result, the report's form and content are more accessible to the public, and they also have different channels of communication for various audiences.

2.79
Although having some different purposes and processes, the other countries' well-being reports we looked at are focused on ensuring that they are meaningful and accessible to a wide range of audiences, particularly the general public.

10: See "General Social Survey", at datainfoplus.stats.govt.nz, and "New Zealand Health Survey", at health.govt.nz.

11: See Nielsen (2019), The Canterbury wellbeing survey, at cph.co.nz and the Salvation Army (2022), The state of our communities report 2022, at salvationarmy.org.nz.

12: See Statistics New Zealand (2021), Kei te pēhea tātou? A snapshot of New Zealand's wellbeing, at stats.govt.nz.

13: Governments in countries such as Ireland and Australia are only just developing their well-being frameworks and reporting. At the time of finalising this commentary, the Australian Treasury published its first Well-being Report, Measuring What Matters.

14: See Welsh Government (2022), Wellbeing of Wales, at gov.wales.

15: See Welsh Government (2022), Wellbeing of Wales, background information at gov.wales.

16: Scottish Government (2019), Scotland's wellbeing – Delivering the national outcomes, page 4, at nationalperformance.gov.scot.

17: The United Nation's sustainable development goals are a set of 17 global goals aimed at improving the planet and the quality of human life around the world. They include goals related to poverty, inequality, climate change, environmental degradation, peace, and justice.

18: The Office of National Statistics (2023), Quality of life in the UK: February 2023, at ons.gov.uk. Although the United Kingdom is an independent sovereign state, it is made up of four countries. For simplicity, we refer to it as a country for the purposes of this report.

19: See CBS (2022), Monitor of Well-being and the sustainable development goals 2022, at longreads.cbs.nl.

20: See "Sustainable development goals (SDGs) in the Dutch context" in CBS (2022), Monitor of Well-being and the sustainable development goals 2022, at longreads.cbs.nl.

21: Statistics New Zealand also uses the Conference of European Statisticians' Recommendations on measuring sustainable development for its well-being indicators.

22: Accountability day is when the Netherlands' Minister of Finance presents the Government's annual financial report to the House of Representatives and the House examines the performance of the government. The President of the Netherlands Court of Audit also presents a report to the House that assesses whether, for example, the government has achieved its desired policy goals and whether the Cabinet observed the law. See houseofrepresentatives.nl/accountability-day.

23: Scottish Government (2018), Ending homelessness together: High level action plan, at gov.scot.

24: See the Welsh Government's blog at shapingwalesfuture.blog.gov.wales.

25: Controller and Auditor-General (2021), The Government's preparedness to implement the sustainable development goals, at oag.parliament.nz.

26: The Organisation for Economic Co-operation and Development (2020), How's life? 2020 – Measuring well-being, at oecd.org.