Child poverty is costing the New England and North West region more than $2 billion annually, according to a report commissioned by the NSW Council of Social Service (NCOSS).
The report, titled Lasting Impacts: The Economic Costs of Child Poverty in NSW, calculates for the first time the financial toll of failing to invest in children’s wellbeing.
In the New England and North West area, approximately 22 per cent of children live in poverty, with the economic impact estimated at $10,500 per person.
NCOSS Chief Executive Cara Varian revealed that the broader cost of childhood poverty across New South Wales stands at an astonishing $60 billion annually—outstripping major economic contributors like construction ($52.9 billion), manufacturing ($42.3 billion), and mining ($32.5 billion).
“There are more than 9,500 children in poverty in New England and North West,” Ms Varian said.
“Child poverty hurts us all—it robs children of their future and steals $2 billion from the New England and North West economy every year.”
Ms Varian highlighted the intergenerational effects of childhood poverty, saying “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.”
The report emphasised the lasting impacts of poverty during childhood, including poorer physical and mental health, lower earnings, and increased likelihood of unemployment, homelessness, or involvement in the legal system 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.
The $60 billion cost of child poverty in NSW includes $26 billion in direct expenses, such as government services and reduced productivity, and $34 billion stemming from diminished health and life expectancy.
Call for Government Action
NCOSS is urging the NSW and Australian Governments to implement a range of measures to alleviate child poverty, including:
- Substantially 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 10 per cent of all housing is social and affordable, increasing Commonwealth Rent Assistance to align with private rental costs, and adequately resourcing homelessness services.
- Empowering First Nations communities through joint decision-making and increased funding for Aboriginal Community Controlled services.
- Guaranteeing all children access to at least three days of quality and affordable childcare by removing the Activity Test on childcare subsidies.
- Investing in integrated early support services for children and families.
Ms Varian called on policymakers to act urgently, emphasising the economic and social benefits of breaking the cycle of child poverty.
