The New Zealand Treasury’s Living Standards Framework was established in 2011 to support the integration of multi-dimensional and long-term understandings of well-being in the Treasury’s economic advice to guide policy decisions. Since 2018, it has been supported by an indicator dashboard to provide ongoing monitoring of well-being outcomes.
New Zealand’s Living Standards Framework
Abstract
The New Zealand Treasury first developed its Living Standards Framework in 2011. The Framework was established as a conceptual tool to support Treasury analysts’ understanding of well-being drivers and of the wider dimensions of well-being to consider when formulating advice, as well as of the trade-offs to consider between alternative policy options. To ensure the continued quality and relevance of the Framework, it is reviewed on a periodic basis, and was updated in 2018 and in 2021. An accompanying indicator dashboard based on the Framework was released in 2018, and is also updated on a regular basis.
The Living Standards Framework (LSF) assesses multidimensional well-being across three levels: Individual and Collective Well-being, Institutions and Governance, and Wealth. These levels are analysed through the lenses (or analytical prompts) of Distribution, Resilience, Productivity and Sustainability. Individual and Collective Well-being dimensions include Health; Knowledge and skills; Cultural capability and belonging; Work, care, and volunteering; Engagement and voice; Housing; Environmental amenity; Leisure and play; Family and friends; Safety; and Subjective well-being. Institutions and Governance dimensions include Whānau, hapū and iwi (representing extended family and descendant groups in Māori culture); Families and households; Civil society; Firms and markets; Central and local government; and Intergenerational connections.
An accompanying indicator set – the LSF Dashboard – was developed in 2018 to inform well-being reporting and guide policy advice on cross-government wellbeing priorities. The dashboard’s data are updated every six months around April and October to support ongoing well-being reporting. Where possible, the indicators show trends over time, and disaggregation by sex, ethnicity, region, as well as international comparisons.
The LSF provides a framework to understand the drivers of well-being and to consider the broader impacts of the Treasury’s advice in a systematic and evidence-based way. It helps inform Treasury analysts’ thinking about policy impacts across different well-being dimensions, as well as the long-term and distributional implications of policies. The Living Standards Framework draws from and aligns where possible with the Ngā Tūtohu Aotearoa – Indicators Aotearoa New Zealand, a broad and deep source of well-being data supporting a range of reporting requirements. The LSF is not comprehensive and is intended to be used alongside other frameworks including the He Ara Waiora Framework – see our dedicated case study for more information –, developed in 2017 to explore well-being impacts from te ao Māori and Pacific perspectives. Together, the collected evidence supports the Treasury in providing economic and financial advice to the Government.
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