This memorandum examines the Department for Education’s
cost-benefit analysis for the Government’s policy to require young
people to continue participating in education and training until
the age of 18, assessed against best practice and principles, as
set out in HM Treasury’s ‘The Green Book - Appraisal and
Evaluation in Central Government'. It draws out general lessons for
the way in which cost-benefit analyses are produced across
government. Our memorandum follows on from the National Audit
Office's recent review of option appraisals across central
government.
Overall we concluded that the Department’s assessment that the
policy will lead to a net economic benefit was reasonable. We
consider that the cost-benefit analysis was thorough and
comprehensive, relative to the quality of those across government
that the National Audit Office has previously assessed. We
identified a number of areas for improvement, our main criticism
being that the Department had not retained the data and information
used to undertake the cost-benefit analysis in an accessible form
for use later by others.
July 2011