11 April 2008
Child poverty in Scotland is costing up to £1.75bn a year, according to research carried out for the Scottish government.
A report, Estimating the cost of child poverty – approaches and evidence, considers the cost to the public purse of having one in five of Scotland's 1 million children living in poverty.
It looks at how much is being spent on supporting poor children, how much more it would cost to lift them out of poverty through the benefits and tax credits system and what alternative means might be available to prevent poverty.
The report estimates that the direct cost of child poverty due to extra spending on services amounts to between £500m and £750m a year.
But it also reckons that the annual knock-on cost to the public purse of young people not in employment, education or training could be as high as another £1bn – equivalent to about £4,000 to £5,000 per child.
Child poverty has led to higher public spending across health, education, housing, social services and youth justice. 'By breaking the cycle that passes the damages of poverty from one generation to the next, incalculable long-term benefits could be achieved,' it says.
Health Secretary Nicola Sturgeon said the report highlighted the need for a cross-governmental framework for tackling the issue and the government had already pledged to put one in place this year.
'An important message in the report is that helping parents into work is probably the single most important way of lifting children out of poverty,' she added.
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