The report says 278,000 children live in poverty in NSW – more than the population of Sydney’s eastern suburbs. Photo: Mission Australia.
Australia’s first report quantifying the economic costs of child poverty has found that NSW is losing nearly $60 billion a year to the growing issue – meaning almost one in six children is living below the poverty line.
Commissioned by the state’s peak social services body, the NSW Council of Social Service (NCOSS), and researched by Impact Economics and Policy, the report highlights how the impacts of child poverty not only reverberate throughout their life but impose significant costs on government expenditure and revenue, and the state’s economic growth.
In total, the report found this economic impact of childhood poverty equates to more than $7000 per NSW person.
The researchers found this includes $26bn in direct costs (delivering government services, reduced labour market participation and productivity) and $34bn from diminished health and life expectancy.
“We live in one of the world’s wealthiest nations – poverty is preventable and this research shows the immense economic opportunity available to the NSW Government,” NCOSS CEO Cara Varian said. Photo: Facebook.
NCOSS chief executive Cara Varian said the cost of childhood poverty eclipsed the annual contributions to the economy from major sectors such as construction ($52.9bn), manufacturing ($42.3bn) and mining ($32.5bn).
“We are setting up a cycle of disadvantage,” Ms Varian said. “Children from households living in poverty are three times more likely to also experience poverty in adulthood.
“Poverty during childhood has a lifelong impact. These children go on to have poor physical and mental health and earn less at work. They are more likely to be unemployed, homeless or land in the legal system as an adult.”
To lift families out of poverty, Ms Varian said the NSW and Australian governments must:
- Substantially increase base rates of income support payments, particularly JobSeeker and Parenting Payments (e.g. match rates of the age pension), and index them to community living standards
- Ensure that a minimum of 10 per cent of all housing is social and affordable
- Further increase Commonwealth Rent Assistance to keep up with private rental rates
- Ensure homelessness services are resourced to support everyone who needs help
- Commit to joint decision-making to empower First Nations communities in the design and delivery of services, including boosting funding for the Aboriginal Community Controlled sector
- Guarantee all children have access to at least three days a week of quality and affordable childcare, with removal of the Activity Test on the childcare subsidy
- Invest in high-quality integrated support services for children and families that help them early in life.
Another feature of the report was detailed region-specific information, some of which may be useful for Region readers.
Capital region:
- About 14 per cent of children live in poverty (more than 7100)
- The economic impact equates to $6000 per person, but in total costs $1.5bn to the local economy every year.
The Southern Highlands and Shoalhaven:
- About 16 per cent of children live in poverty (more than 5200)
- The economic impact equates to $6600 per person, but in total costs $1.1bn to the local economy every year.
The Illawarra:
- About 13.5 per cent of children live in poverty (more than 9300)
- The economic impact equates to more than $6100 per person, but in total costs $2bn to the local economy every year.
The Riverina:
- More than 18 per cent of children live in poverty (in excess of 7200)
- The economic impact equates to just under $9000 per person, but in total costs more than $1.5bn to the local economy every year.
