Speech

Behavioural Exchange 2015 opening speech

Minister for the Cabinet Office Matt Hancock spoke about how behavioural insights have informed government policy and processes.

This was published under the 2015 to 2016 Cameron Conservative government
皇冠体育app Rt Hon Matt Hancock

It鈥檚 a great honour to open this conference.

Ten years ago a conference on behavioural science would have been a much more modest affair. 皇冠体育appre wouldn鈥檛 have been a free lunch. Richard Thaler wouldn鈥檛 be signing any autographs. And let鈥檚 be honest, there wouldn鈥檛 have been much interest from government.

Yet in a remarkably short space of time, this agenda has gone from the seminar table to the Cabinet table of governments around the world.

I think a big catalyst for this was the crash. How did banks, policymakers and mainstream economic theory all fail so badly? It鈥檚 a question lots of people in this room have thought hard about.

My own conclusion is that a whole edifice of economic policy was built on the belief that people always behave rationally, on an assumption of how they ought to behave, rather than observations of how they actually do.

And it鈥檚 hard to model human behaviour. It鈥檚 hard to condense all our quirks and foibles into a neat mathematical formula and then to base a theory on it, so people didn鈥檛 bother. But life is hard.

We set up the in 2010 because we wanted to correct that bias.

It should not be controversial to say we鈥檝e got to base policy on how people really behave. We鈥檝e got to understand the context in which people act: the norms, behaviours and cognitive pressures that govern our decisions.

And the era of fiscal restraint gave a new urgency to this work. With money tight, we had to be sure that our interventions would actually work.

We gave the team an office in the heart of government, reporting to the Cabinet Office and Number 10, because we were intent on taking their findings seriously.

But crucially, the point of the team was not to use its institutional position to tell other parts of government what to do. This was the Nudge Unit, not the Shove Unit. We knew the team had to take people with them, by showing rather than telling often sceptical policymakers how these ideas could help build better services.

And that鈥檚 what they began to do.

It started with the now famous tax letters. 皇冠体育appse showed that people are more likely to respond if you simplify the message and tell them 鈥� truly 鈥� that the vast majority of people pay on time.

That trial, and variations on it, have now been replicated by colleagues from all over the world. In Australia, with the Government of New South Wales; in Singapore, with the Ministry of Manpower, and in Guatemala, with the World Bank.

I鈥檓 delighted that many of the people responsible for that work are here today and I look forward to hearing where they鈥檙e heading next.

And while the results are incredibly powerful, the methodology is just as the important as any specific findings.

One of the central insights is that the human mind creates mental shortcuts: stories, cues and rules of thumb to make sense of a complex and uncertain world.

Government behaves like this too. Faced with a difficult policy problem there is always a temptation to stick with the tried and familiar, rather than experiment.

But let鈥檚 admit it, we can鈥檛 always predict what will work best. So we have to try out variations of a policy, throw out the ones that don鈥檛 work and iterate the rest. Policy based on observation rather than prediction, on controlled trials rather than assumption: it鈥檚 about applying the rigour of science to the art of government.

After looking first at administrative processes, at the Prime Minister鈥檚 request the Behavioural Insights Team has now moved on to more complex areas of policy.

We鈥檝e applied behavioural insights to some of our toughest policy challenges: from supporting people back to work, to making our healthcare system more efficient, to helping improve young adults鈥� English and maths skills 鈥� something I was personally involved in as a minister.

And as well as learning from failure, we can learn from other successes too.

So at this conference you鈥檒l hear from representatives from the White House, the German Chancellery, the European Commission, UNDP and the OECD. I鈥檓 grateful to those who鈥檝e flown in from the United States, from Columbia, Brazil and Mexico, from the Finnish Prime Minister鈥檚 Office, from Israel, Canada, Austria, Italy and the Gulf.

And we have representatives from across the UK government, including from the behavioural insight teams we鈥檝e established in almost every department, often working in partnership with the BIT itself.

And I鈥檓 delighted to welcome an incredible group of academics, again from all over the world. I鈥檇 like to highlight and personally thank colleagues from Harvard University, which will be hosting next year鈥檚 conference.

And Richard Thaler of course, who鈥檚 been a long-time academic advisor to our own Behavioural Insights Team, for which we remain grateful.

When the team first started in 2010, the UK government was seen as a first mover. We鈥檙e extremely proud of that but we鈥檙e also glad that this has become a global movement. Because the further it spreads, the more data and ideas we have to share, and the more we learn about how to use these insights to inform better public policy.

So thank you for your time, and on behalf of the UK government I want to wish you a successful event and I look forward to hearing your conclusions.

Because ultimately that鈥檚 what this is about. Making government work better, to help more citizens lead good and fulfilling lives.

Updates to this page

Published 2 September 2015