The UK would save £486 billion over 20 years and dramatically
improve social wellbeing by shifting investment in children and young
people to a more preventative model says a new report, Backing the Future, launched today, Wednesday 16 September, by children’s charity Action for Children and nef (the new economics foundation).
The report sets out the first ever full analysis of the economic and
social cost of the UK’s failure to invest sufficiently in services that
prevent social problems such as crime, mental ill health, family
breakdown, drug use and obesity. These problems come with a significant
price tag for the UK economy, society and individuals. Instead Backing the Future
calls for a radical new approach from Government that would include
investment in the future of children and young people that would
reverse existing trends, change the lives of future generations and
deliver significant savings to the UK economy.
Backing the Future outlines a package that combines
additional investment over ten years in targeted services for
vulnerable children and young people who are already beginning to
experience difficulties, alongside a combination of universal childcare
and paid parental leave that would lay the foundations for the long
term shift towards a system based on prevention and nurture. The
benefits this would bring for young people, families and communities
could actually reduce the need for spending in the long-term.
This package would bring returns to the UK economy totalling £486 billion over 20 years (roughly five times the current annual budget of the whole of the NHS) - even after funding the transition from the system we have now to a more preventative and effective approach.
To achieve this, the report recommends:
- a £191 billion 10 year investment programme in
targeted interventions designed to tackle problems before they become
entrenched, combined with;
- a £428 billion 20-year programme of investment in universal childcare and paid parental leave.
To fund the transition to a preventative system, the report makes a
case for raising funds through a series of annual bond issues, backing
the long-term interests of society while also providing secure and
stable investment products for institutional investors such as pension
funds.
If current inefficient spending continues the cost to the UK
economy of dealing with social problems such as family breakdown,
mental ill-health and drug abuse could reach as much as £4 trillion
over the next 20 years without addressing the root cause of the
problems.
Backing the Future finds that significant change of direction
in government policy, business practices and social behaviour is vital.
It recommends changes in the way that services are delivered, and the
way we think about childhood. Children need a solid platform to build
strong positive relationships, connections within the community and
reach their full potential so they become valuable contributors to
society. Yet the report finds that current policy doesn’t do enough to
promote children’s psychological and social well-being and that
spending is still more likely to be targeted on the consequences rather
than the root causes of social problems.
The report includes a Social Return on Investment analysis of Action
for Children’s preventive approaches, which finds that for every £1
invested annually in Action for Children’s targeted services,
society benefits by between £7.60 and £9.20 in social value created.
This preventive approach is designed to catch problems early, foster
family relationships, improve local community links, and increase
education and employment possibilities.
Clare Tickell, Action for Children Chief Executive, says:
“It’s not the amount of money Government spends, but how they spend it.
Skewing investment towards picking up the pieces has a devastating
effect on the most vulnerable children. Governments need to invest to
change people’s lives, particularly the most vulnerable. There has been
a long term understanding and belief in the benefits of early
intervention and prevention– but with too little action to back it up.
The sums in this report are clear. What we need now is for politicians
to be brave and make a fundamental change to ensure every child gets
the chance to be their very best.”
Jody Aked, nef researcher and the report’s lead author, says:
“In the current economic climate, a sharp squeeze on public services is
expected whoever is in power. The reality is that government can’t
afford not to invest. Moving to a system that underpins a thriving,
vibrant future for the UK’s children would deliver a much sought-after,
but elusive policy holy grail by preventing problems happening in the
first place. And that can only be good news for the UK economy and
society.”
The report recommends three inter-related ‘reform packages’ to make this happen:
- A 10 year investment in targeted interventions that support vulnerable children and help to short-circuit the intergenerational cycle of deprivation
- A
commitment to ongoing investment in high quality universal childcare
services and paid parental leave that become self-funding through the
savings generated elsewhere. This will build the foundations for a more equitable and well-functioning society over the medium and longer-term
- A reform package that would re-shape the way targeted and universal services work so that they build on the assets and strengths of children, young people and their families as well as addressing their needs
The report also finds that children’s services have overlooked one
of their key resources: young people themselves. Where services are
‘co-produced’ with the direct involvement of young people and their
families they are more likely to deliver long term benefits and the
report sets out six core principles that researchers say should guide
policy-makers and those involved in service delivery
Backing the Future provides a compelling economic and social
case for transforming the way that we invest in the future of society
through our children. Now, more than ever, efficient investment must be
made to promote child well-being, not just because it is a better use
of public resources, but because ultimately securing a better future
for children and young people in the UK is good for us all.
