CHILD poverty is costing the Coffs Harbour-Grafton region $1.3 billion a year, according to landmark research commissioned by peak social services body, the NSW Council of Social Services (NCOSS).

The report, titled “Lasting Impacts: The Economic Costs of Child Poverty in NSW” calculated for the first time the impact of failing to invest in children.

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According to NCOSS, more than 20 percent of children in Coffs Harbour-Grafton live in poverty and the economic impact equates to $8600 per person.

NCOSS chief executive Cara Varian, said the total cost of childhood poverty in NSW is $60 billion, eclipsing the annual contributions to the state’s economy from major sectors such as construction ($52.9 billion), manufacturing ($42.3 billion) and mining ($32.5 billion).

“There are more than 6,200 children in poverty in Coffs Harbour-Grafton,” she said.

For this report, child poverty is defined as a child from birth to seventeen years living in a household with income less than 50 percent of the median household’s income, (including government benefits, and after tax and housing costs).

“Child poverty hurts us all – it robs children of their future and steals $1.3 billion from the Coffs Harbour-Grafton economy every year.”

“Children from households living in poverty are three times more likely to also experience poverty in adulthood. We are setting up a cycle of disadvantage”.

“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.”

NCOSS’ statewide breakdown of costs per category includes:

– $19 billion a year because of missed educational opportunities, leading to lower pay or unemployment

– $5.3 billion a year in health costs and associated disadvantage

– $3 billion a year because of child maltreatment (including family violence)

– $855 million a year in crime costs (about 20 percent of criminal offences committed by children are directly attributable to child poverty

– $1.1 billion a year attributed to homelessness (approximately 80 percent of children who are homeless experience homelessness as adults).

“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 if it takes the steps necessary to avoid the long-term consequences of child poverty,” Ms Varian said.

She urged the NSW and Australian governments to help lift families out of poverty by:

– substantially increasing base rates of income support payments, particularly JobSeeker and Parenting Payments (e.g. matching rates of the Age Pension) and indexing them to community living standards

– ensuring that a minimum of 10 percent of all housing is social and affordable housing

– further increasing Commonwealth Rent Assistance to keep up with private rental rates

– ensuring homelessness services are adequately resourced

– committing to joint decision-making to empower First Nations communities in the design and delivery of services

– guaranteeing that all children have access to at least three days a week of quality and affordable childcare

– investing in high-quality integrated support services for children and families that help them early in life.

To read the full report, go to ncoss.org.au.

By Andrew VIVIAN