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Child poverty costs local authorities hundreds of millions of pounds a year

A new report by the Child Poverty Action Group (CPAG) estimates the costs to the economy and Government generated by child poverty rates in every local authority and constituency in the UK.

Produced by Donald Hirsch of Loughborough University on behalf of the charity, it shows the impact of welfare reforms, such as changes to child tax credit and the introduction of the Universal Credit, on child poverty levels locally.

The report, ‘Local authorities and child poverty: balancing threats with opportunities’, launched today at a CPAG conference, estimates the total amount of money that is ‘lost’ in local authorities due to child poverty.

Each child living below the poverty line is estimated to cost around £10,861.42 annually.

According to the data, Birmingham, where 84,114 children live in poverty, spends £914m annually, while child poverty costs Manchester £446m and Glasgow City £395m a year.

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