There is more to wellbeing than just a healthy economy. That’s why the Treasury has developed its Living Standards Framework (LSF) – it helps us advise governments about how the policy trade-offs they make are likely to affect everyone’s living standards.
The LSF looks across the human, social, natural and financial/physical aspects of those things that affect our wellbeing – the ‘four capitals’. It is a tool that emphasises the diversity of outcomes meaningful for New Zealanders, and helps the Treasury to analyse, measure and compare those outcomes through a wide and evolving set of indicators.
Read more about the Treasury’s approach to living standards here: The Treasury Approach to the Living Standards Framework
The framework continues to develop as the evidence improves and we learn more about what is needed to make it more useful to officials and ministers.
The document below explains the current version of the Living Standards Framework, its development and the OECD research on which the LSF is based, and further work planned.
The LSF Dashboard is a measurement tool used within the Treasury to view and compare indicators of wellbeing. We’ve published it on our website for public transparency and interest.
The Treasury has been developing the LSF since 2011 and historic versions of the LSF can be found at History of the Living Standards Framework.