In brief

When the UK coalition government was formed in May 2010, the new prime minister, David Cameron, translated his enthusiasm for the theory of behavioural insights or ‘nudge’ into reality. He helped set up the Behavioural Insights Team at the centre of government, and encouraged them to innovate and create policy initiatives based on their theories of influence and persuasion.

The challenge

Governments’ policies have often been seen as too prescriptive, trying to direct citizens to act in a certain way – with limited success – rather than persuade them to modify their behaviour through subtle influencing. The latter approach “was made popular by US professor, Richard Thaler, who co-wrote the 2008 book, ‘Nudge’ with Cass R. Sunstein, and is an adviser to the UK team.” [1] It was a view that had some traction with the UK’s coalition government, and it was adopted as an important plank in their reform of public services.

The initiative

The Behavioural Insights Team (BIT) – commonly known as the “nudge unit” – was set up by the coalition government in July 2010. [2] Its aims were, and remain:

  • “Making public services more cost-effective and easier for citizens to use.
  • “Improving outcomes by introducing a more realistic model of human behaviour to policy; and wherever possible,
  • “Enabling people to make ‘better choices for themselves’.”

The detailed approach is that “a small team of psychologists and economists apply insights and methods from behavioural science to the design of policies, demonstrating how small changes to the context in which people choose can have a dramatic effect on behaviour.” [3] The objective is to find low- or no-cost interventions that can have a rapid and significant impact.

The BIT’s process “follows four distinct steps [4]:
1. Understand the system in question, e.g., how Her Majesty’s Revenue and Customs (HMRC) collects income tax, to identify the outcomes of interest and relevant behaviours.
2. Build your insights around why these behaviours occur and ways to change them, e.g., make a process easier or more social.
3. Design the intervention.
4. Test and adapt the ideas using randomised controlled trials where possible.”

It is the BIT’s contention that the basic principles of this process can be applied to many domains and systems, from tax collection to criminal justice.

The public impact

Over the past two years, the team claims to have identified public savings of at least £300 million:

  • Improving tax repayment rates has already generated £30 million of extra revenue annually.
  • The use of text messaging has reduced by 150,000 the number of repossession interventions by bailiffs, also saving £30 million.
  • The addition of 100,000 people to the organ donation register.
  • Persuading 20 percent more people to consider switching energy provider.
  • Doubling the number of applicants to the British Army.

David Halpern, the CEO of the BIT, cites the collaboration with the UK’s network of job centres as a key source of pride. “The project was underpinned by the insight that encouraging claimants to make specific commitments to future activities, linked to their daily routines, helps them follow through on their job search intentions. The success of the pilot scheme has led to the retraining of 25,000 job centre advisors and the approach is now implemented in every job centre, with hundreds of thousands of claimants already benefiting.” [5]

Have an idea for a case study? Print

What did and didn't work

All cases in our Public Impact Observatory have been evaluated for performance against the elements of our Public Impact Fundamentals.

Legitimacy

Stakeholder Engagement Good

The prime minister, David Cameron, approved the creation of the BIT within government (specifically the Cabinet Office) in the summer of 2010 and was the senior political figure most closely associated with the BIT. The Civil Service as a whole is an important stakeholder, and many of its members are trained in the theory and practice of behavioural insights.

Political Commitment Strong

It was initiated by the newly-formed coalition government. It had strong political support and was well funded. It was also well as integrated with a broad spectrum of government departments covering a number of important policy areas.

Policy

Clear Objectives Good

The objectives of the team were clearly defined at the outset but were not measurable. The objectives were also well aligned with the government's target of reducing the public debt.

The unit still gets most of its work from the UK government, although it has expanded to take on a wider range of projects, including work for foreign governments, the World Bank and the UN.

Evidence Good

The BIT was founded on the existing theory of behavioural insights, initially developed and promoted by academic psychologists in the US. A ground-breaking 1994 study, ‘Expressive Writing and Coping with Job Loss’, found that writing about job loss helps the recently unemployed deal with the problem and increases their motivation to find work, and translates into success in landing a new job. [6] This compared with much worse outcomes for those who kept their feelings to themselves. These findings were developed over time into theories of behavioural insights, which were set out in the 2008 book ‘Nudge’ (see above). This work became required reading for many in the Conservative opposition, including David Cameron, who adopted many of its theories.

An application of behavioural insights to government policy was trialled in a job centre in Loughton, Essex. Instead of jobseekers “having to show they've looked for at least three jobs in the last two weeks, advisers will now say, 'OK, let's talk about what you are going to do in the next two weeks'". [7] The client is then encouraged to write it down in a booklet, “and all the things you need to do before you get your job have been compressed onto one side of paper and designed in such a way that when you go through it with the adviser, you've done a third of it straight away. That in itself gives you a strong, immediate sense of progress."

The results were very promising, and the approach was extended to the entire network of UK job centres. The team was then given three challenging objectives to achieve before a review in 2012 to demonstrate tangible achievements over the team’s two years in the government. The Cabinet Secretary and the Prime Minister concluded that, on the basis of the team’s success, it should continue to operate.

Action

Management Good

The BIT has been led right from its inception by David Halpern, who served as the chief analyst at the prime minister's strategy unit before becoming CEO. The BIT members have either a strong academic grounding in economics, psychology or randomised controlled trial design, or a background in government policymaking. Its initial location in the Cabinet Office meant that it was given the authority and independence to manage its own affairs, but also had access to the management teams at the centre of government.

Measurement Fair

The outcomes of the BIT’s work are measurable, for example:

  • The number of new people applying for an initiative, such as organ donation or a recruitment exercise for the army.
  • A change in tax revenues generated through behavioural changes initiated by the BIT.
  • The increase in the number of jobseekers finding work as result of applying the BIT’s approach.

Alignment Strong

The BIT is working with different government departments and delivering successful results across growing range of policy areas, such as education, healthcare and employment. The CEO, David Halpern, has said that he has received considerable support from political and administrative stakeholders and this support has been maintained: “It was fantastic that we were able to assemble the right mix of political and administrative support. This bedrock of support has never wavered, perhaps because the results were so positive.”

Bibliography

David Halpern: 'We try to avoid legislation and ordering', Alison Benjamin, 5 February 2013, The Guardian

Behavioural Insights Team, United Kingdom, Ed Gardiner, 2014, Sharing Experience Europe: Policy Innovation Design

Who we are, The Behavioural Insights Team

Britain’s Ministry of Nudges, Katrin Bennhold, December 7, 2013, The New York Times

Change makers, November 2015, The Centre for Public Impact

Behavioural Insights Applied to Policy, European Report 2016, Joint Research Centre, European Commission

Expressive Writing and Coping with Job Loss, Spera, S. P., Buhrfeind, and E. D. and J.W. Pennebaker, 1994). Academy of Management Journal, Vol. 37, pp. 722-733