Child Poverty Action Group’s (CPAG) analysis of the Department for Work and Pensions’ 'Households Below Average Income', covering April 2021- April 2022 shows:
CPAG estimates that child poverty costs the UK £39.5 billion a year in lost tax and earnings, unemployment benefit and additional public services spending including £3.1 billion on the Pupil Premium and early years entitlement for disadvantaged two-year-olds. This is up from £25bn in 2008.
Its analysis, put together by Donald Hirsch, director of the Centre for Research in Social Policy at Loughborough University, highlights that since 2021, spending on the Pupil Premium has risen from £2.5 billion to £2.7 billion a year, while spending on funded two-year-old places has fallen from £0.5 billion to £0.4 billion.
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