The economic cost of child poverty in the Richmond-Tweed region is more than $1.8 billion a year, according to landmark research commissioned by peak social services body 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 our children.

About 16 per cent of children in the Richmond-Tweed region live in poverty, and the economic impact equates to more than $6,800 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 8,600 children in poverty in the Richmond-Tweed region,” she said.

“Child poverty hurts us all - it robs children of their future and steals more than $1.8 billion from the Richmond-Tweed region 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.

“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.”

The economic costs from childhood poverty include $26 billion in direct costs (delivering Government services, reduced labour market participation and productivity) and $34 billion from diminished health and life expectancy.

Ms Varian said the NSW and Australian Governments must do the following to lift families out of poverty:

• Substantially increase base rates of income support payments, particularly JobSeeker and Parenting Payments (e.g. match rates of the Age Pension), and index them to community living standards.
• Ensure that a minimum of 10 per cent of all housing is social and affordable housing; further increase Commonwealth Rent Assistance to keep up with private rental rates; and ensure homelessness services are resourced to support everyone who needs help.
• Commit to joint decision-making to empower First Nations communities in the design and delivery of services, including boosting funding for the Aboriginal Community Controlled sector.
• Guarantee all children have access to at least three days a week of quality and affordable childcare, with removal of the Activity Test on the childcare subsidy.
• Invest in high-quality integrated support services for children and families, that help them early in life. 

For this report, child poverty is defined as a child (0 -17 years) living in a household with income less than 50 per cent of the median household’s income (including government benefits, and after tax and housing costs), adjusted for household size.

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