According to an new report by David Hirsch of Loughborough University’s Centre for Social Policy, the estimated minimum cost of child poverty in the UK today stands at £29bn £4bn higher than in 2008 when the last calculations were carried out.
These costs are set to rise – the Joseph Rowntree Foundation predicts that the number of children living in poverty will increase to 3.4m by 2020, a rise of 700,000. This could cost the UK an estimated £35bn in today’s terms unless action is taken to reverse the upward trend.
As a consequence of child poverty it is estimated that in 2013:
- £15bn will be spent on extra services
- £2.4bn will be spent on benefits for adults who grew up in poverty
- £3.5bn will be lost from potential tax receipts from adults who grew up in poverty
- £8.5bn of potential post-tax income for adults who have grown up in poverty will be lost.
The report ends by stating that: “The prospect of facing this colossal bill for allowing child poverty to return to around its high point last seen in the late 1990s is a powerful incentive to devote resources instead to fulfilling the commitment, enshrined in the Child Poverty Act 2010, of its eradication.”
Source: Child Poverty Action Group