08457 22 44 99
The OFT’s evaluation programme aims to evaluate whether the OFT delivers its objectives cost-effectively, and to help the OFT prioritise, conduct, and follow up its work to maximise its impact.
Positive impact 2009-10
The OFT published, in July 2010, its Positive Impact 09-10. Positive Impact 09-10 presents the direct financial benefits to consumers from OFT's work on competition enforcement, consumer protection, mergers and markets work over the three year period 2007-08 to 2009-10. We have continued to work on extending the scope of our impact estimation work as well as fine tuning our approach following the suggestions made by Professor Davies in his independent review of our impact estimation methods.
Following the independent review by Professor Davies in January 2010, the methodological guide explains in detail the methods used to estimate the impact of our work on competition enforcement, mergers, market studies and reviews of orders and undertakings, and consumer protection enforcement.
Consumer Codes Approval Scheme: Evaluating consumer experiences
In July 2010 the OFT published an independent evaluation of the impact on consumers of three codes at different stages of development within the Consumer Codes Approval Scheme (CCAS). The evaluation draws primarily on consumer surveys and follows on from a 2006 review of the impact on business of the CCAS (also published on this web page).
Evaluation of the impact of the OFT's investigation into bid rigging in the construction industry
An independent evaluation has been conducted by Europe Economics of the impact of recent OFT enforcement activities in the construction sector. The evaluation, based on survey responses from construction companies and procurers of construction goods and services, highlights a number of positive developments in awareness and business behaviour in the sector and provides insights into a number of issues, such as the important role of media reports as sources of information about the OFT's work.
Download Evaluation of the impact of the OFT's investigation into bid rigging in the construction industry (pdf 1.66mb)
Evaluation of OFT Competition Advocacy
The OFT commissioned London Economics to conduct an evaluation of the impact of our advocacy interventions. A survey of government officials illustrates that competition advocacy is valued by those receiving the advice, often resulting in changes to delivery and, in cases, to the very objectives of the policy. The report also explores, with the help of three examples, the potential impacts of advocacy interventions and the challenges associated with the evaluation of these impacts.
Download Evaluation of OFT Competition Advocacy (pdf 1.4Mb)
Evaluating the impact of the 2003 OFT study on the Control of Entry regulations in the retail pharmacies market
The OFT commissioned DotEcon to evaluate the impact of the 2005 partial liberalisation introduced as a result of the 2003 OFT market study on control of entry regulations in the sector. The evaluation calculates benefits in terms of travel time savings, shorter waiting times and savings in OTC medicines and finds improvements in access and service to consumers including extended opening hours and greater choice and convenience. Against this, there have been some additional administrative and business costs, but quantified net benefits are estimated at £12-20 million a year.
A review of the OFT's impact estimation methods
The OFT commissioned Professor Stephen Davies to carry out an independent review of its impact estimation methodologies. The review, published in January 2010, assesses the methodologies applied to each area of OFT's work and suggests possible modifications. Overall, it provides a very positive endorsement of the bulk of the OFT impact estimation work.
Download the A review of the OFT's impact estimation methods (pdf 543kb)
Download the OFT response to the review of impact estimation methods (pdf 135kb)
Monitoring the internet shopping market
In January 2010 the OFT published a note assessing changes in consumer awareness of rights, business practices, and consumer confidence in relation to online shopping. This report compares findings from a web sweep carried out in March 2009 to those from a similar exercise undertaken in December 2007. It analyses results from consumer omnibus surveys - published in May 2009 - and the web sweep to give an overall assessment of market developments on such key issues as awareness of cancellation rights, security concerns, and consumer confidence since the OFT Internet Shopping market study and follow up activities carried out in 2007.
Download Monitoring the internet shopping market (pdf 369kb)
Assessing the wider benefits of the OFT's work
The OFT has a target with HM Treasury to demonstrate how it delivers wider benefits to consumers in the form of deterrence of anti-competitive behaviour and increasing consumer confidence. This paper further develops the wider benefits evidence base through considering the OFT’s impact on consumer confidence.
Download Evidence on Consumer Confidence (pdf 172 kb)
Evaluation of a sample of OFT's consumer enforcement cases
The OFT commissioned London Economics to evaluate the impact of a sample of six completed consumer enforcement cases. The principal aim of this study was to review the effectiveness of a cross section of OFT interventions, and consider ways to enhance the impact of future interventions.
This is the first time the OFT has independently assessed the financial impact of its consumer protection work.
The study, which uses different data sources to measure intervention outcomes, found that all six cases delivered positive benefits for consumers totalling an estimated £243 million per year. These benefits compare very favourably with the estimated costs of the cases for the OFT (£2.4 million). Even allowing benefits to last for one year only, this represents a value for money ratio of 100:1.
While the research reveals that the financial impact of the OFT's interventions is significant, it also highlights the importance of prioritisation in securing good outcomes for consumers, and the role that deterrence can play in maximising impact.
Download the report: Evaluation of a sample of consumer enforcement cases (pdf 612 kb) and Annexes (pdf 1.5 mb)
The OFT’s evaluation team aims to meet two needs:
The programme of work is agreed with both policy committee and the OFT board. The programme covers the full range of OFT work.
Under the OFT's comprehensive spending review settlement with HM Treasury we have agreed to deliver measurable benefits to UK consumers of five times our annual budget over the financial years 2008-11, and 3.5 times the budget for Consumer Direct. The programme of evaluation work is tailored to ensure we are able to measure the achievement of the key targets included in the HMT performance framework agreement.
The evaluation team conducts in-depth evaluations of discrete projects, develops frameworks to help project teams estimate impact at both the prioritisation and evaluation stages, and commissions research into wider issues related to the impact of the office. Over time the team aims to embed the majority of the project specific evaluation work within project teams. We have started embedding anticipation of evaluation into our market studies and merger work.
View our previous publications.
The OFT impact evaluation team is committed to an open, consultative and impartial evaluation programme. We welcome feedback and suggestions on all areas of our work.
Please email any questions or comments: evaluation@oft.gsi.gov.uk
Back to: Policy and research
This feature requires Javascript and Cookies to be enabled on your browser
Register for email alerts or amend your existing account details here.
08457 22 44 99
