CHILD poverty is costing the Mid North Coast economy $2.1 billion annually, according to a new report from the NSW Council of Social Service (NCOSS).

The report, “Lasting Impacts: The Economic Costs of Child Poverty in NSW”, reveals the extensive financial and social repercussions of failing to address child poverty in the region.

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With 22 percent of children on the Mid North Coast living in poverty, the economic toll is equivalent to $8,800 per person.

NCOSS Chief Executive Cara Varian stressed the far-reaching impact of the issue, not just for individuals but for the broader economy.

“Child poverty hurts us all – it robs children of their future and steals $2.1 billion from the Mid North Coast economy every year,” Ms Varian said.

The report found that poverty in childhood creates a cycle of disadvantage, with affected children three times more likely to live in poverty as adults.

These children often face poorer physical and mental health, reduced lifetime earnings, and increased risk of unemployment, homelessness, and interaction with the legal system.

Ms Varian noted the stark comparison between the $60 billion annual cost of child poverty across NSW and the contributions of key industries such as construction ($52.9 billion), manufacturing ($42.3 billion), and mining ($32.5 billion).

“This is one of the wealthiest nations in the world – poverty is preventable,” she said.

“This research highlights the economic opportunity available if governments act to prevent the long-term consequences of child poverty.”

The report identifies $26 billion in direct costs, including government service delivery and reduced labour market participation, with an additional $34 billion attributed to diminished health and life expectancy.

NCOSS has outlined key recommendations for state and federal governments to address child poverty, including:

● Increasing income support payments such as JobSeeker and Parenting Payments to match the Age Pension and indexing them to community living standards.

● Ensuring at least ten percent of housing is social and affordable, increasing Commonwealth Rent Assistance, and adequately funding homelessness services.

● Empowering First Nations communities to design and deliver services, with greater support for Aboriginal Community Controlled organisations.

● Guaranteeing all children access to at least three days of affordable, quality childcare by removing the Activity Test on childcare subsidies.

● Investing in integrated early support services for children and families.

The report defines child poverty as living in a household earning less than 50 percent of the median household income, adjusted for size, after tax and housing costs.

To read the full report, visit ncoss.org.au.

By Luke HADFIELD