The report, Estimating The Costs of Child Poverty, said research hasshown that 12bn extra social spending is required for low-incomefamilies, including more money on law and order because of 'poor familyfunctioning', which may lead to a higher rate of anti-socialbehaviour.
The JRF study suggested a further 2bn is spent on extra benefitswhile child poverty reduces gross domestic product by 11bn -3 billion of which would have gone to the Treasury intaxation.
Donald Hirsch, JRF poverty adviser and author of the report, said,'Child poverty imposes huge costs on those affected but it is alsocostly to us all. Getting rid of child poverty will not be cheap, butthis report shows that large amounts are spent on paying for thefall-out. This could be used for preventing it in the first place.'
Meanwhile, the number of UK children living in poverty fell from 14 percent to 10 per cent between the mid-1990s and 2005, but remained higherthan levels recorded in the mid-1980s and mid-1970s, according to a newstudy from the Organisation of Economic Co-operation and Development(OECD).
The report, Growing Unequal? Income Distribution and Poverty in OECDcountries, showed that since 2000, income inequality and poverty havefallen faster in the UK than in any other OECD country. But the gapbetween rich and poor is still greater in the UK than in three-quartersof the others.
Earnings have become 'much more unequal in the UK', with the wage gapwidening by 20 per cent since 1985, 'with much of the widening occurringtowards the start of this period'. Another key indicator - socialmobility - showed the UK lagging behind Australia, Canada andDenmark.
Kate Green, chief executive of the Child Poverty Action Group, said, 'Itis shocking to see how much worse Britain is for inequality and socialmobility than other wealthy countries. The good news is that, thanks toa Government focus on ending child poverty, things are gettingbetter.'
Government efforts needed to be maintained for progress to continue, sheadded. 'The financial crisis means efforts must now be stepped up, witha rescue package in the pre-Budget report to keep poor familiesafloat.'
Further information
'Estimating The Costs of Child Poverty' is at www.jrf.org.uk and 'Growing Unequal? Income Distribution and Poverty in OECD countries' isat www.oecd.org.
