Behavioural Insights Team

The Behavioural Insights Team (BIT), also known unofficially as the "Nudge Unit", is an organisation that was set up to apply nudge theory (behavioural economics and psychology) to try to improve government policy and services as well as to save the UK government money.

Originally set up as a team within the Cabinet Office, it is now a limited company, Behavioural Insights Limited. It is headed by psychologist David Halpern.

BIT was set up in 2010 by the coalition government in a probationary fashion. In April 2013 it was announced that it would be partially privatised as a mutual joint venture.

On 5 February 2014 its ownership was split equally between the government, the charity Nesta, and the team's employees, with Nesta providing £1.9 million in financing and services. reported that it was "the first time the government has privatised civil servants responsible for policy decisions". The Financial Times expected it "to be the first of many policy teams to be spun off as part of plans to shrink central government and create a private enterprise culture in Whitehall".

UK government departments that had previously received policy advice for free now pay for the service, as the cost of maintaining the team is no longer borne by government.

BIT implemented a trial that included adding a picture of the offending vehicle in the letters sent to non-payers of Vehicle Excise Duty that lead to an increase of the payment rates from 40% to 49%.

BIT tested whether adding a notice that most people pay their taxes on time to the letters sent from HM Revenue and Customs would have effect on the payments made by those receiving the message. Trials increased payment rates significantly.

BIT prompted those owing the UK Courts Service fines with a text message ten days before the bailiffs were to be sent to a person, which doubled payments made without the need for further intervention. This innovation has reportedly saved the Courts Service £30 million a year by "sending people owing fines personalised text messages to persuade them to pay promptly".

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