Embargo: 00:01 Wednesday 7th May

 

SMF: “Out-of-touch policymakers need to understand what makes people tick”

A report issued by a think-tank today further reinforces the need for Government to be in touch with the reality of people’s everyday lives, if they want to affect real change.

Creatures of Habit? The Art of Behavioural Change, published by the Social Market Foundation, challenges the Government to develop a broader approach to policymaking.  It outlines how lessons from the field of behavioural economics can help tackle urgent policy priorities, including reducing obesity, and reducing car-use.

Much traditional policy-making is based on a narrow belief in the ‘rational economic man’ who will respond to financial incentives.  However, people’s decision making is much more complex.

Policy ideas that take this approach:

  •  Too many choices actually discourage people from making a decision.  Reducing the number of choices, and sometimes creating a ‘default choice’, or an auto-enrolment scheme, is an important tool for increasing the uptake of pensions, savings and insurance.
  • Rewards need not be financial.  Social rewards can provide incentives too.   Even something as simple as a green sticker displayed in the windows of low-emissions vehicles, has been shown to increase the use of these vehicles instead of gas guzzlers!
  • Instead on focusing on the proximity of sports facilities and the cost of using them, it is also essential that people overcome perceptions of themselves as “non-sporty”.  An increase in non-competitive sports in schools (much derided in some corners) may be the answer.

Commenting on the report, SMF Director Ann Rossiter said:

 “At present, most policy focuses on changing external factors, such as tax.  But a whole other range of psychological and social factors affect people’s decisions too.   Often, choices are based on non-economic criteria such as ‘rule-of-thumb’, social norms and habit.  By ignoring these factors, policy-makers are operating with one-hand tied behind their back.

 “Government is slowly learning the lessons of behavioural economics, particularly in the field of Public Health.  Creatures of Habit? shows how these techniques could be used more widely.”

 ENDS

 Contact Robert Sharp on 020 7227 4411 or rsharp@smf.co.uk for further information, advance copies of Creatures of Habit? or to arrange interviews.

 NOTES TO EDITORS

  •  The report distils the lessons from a wide range of academic research into a clear, graphical framework, which civil servants can reference when faced with any policy challenge.  It also analyses three current Government policy goals (increasing personal saving, reducing obesity, and reducing car-use) and shows how the framework may be applied.
  • Creatures of Habit? The Art of Behavioural Change by Jessica Prendergrast, Beth Foley, Verena Menne and Alex Karalis Issac, is published on May 7th by the Social Market Foundation.
  • The book is published with the kind support of Ernst & Young
  • The Social Market Foundation is a leading UK think tank, developing innovative ideas across a broad range of economic and social policy. It champions policy ideas which marry markets with social justice and takes a pro-market rather than free-market approach. www.smf.co.uk