Early intervention could save 486bn
Janaki Mahadevan
Wednesday, September 16, 2009
Failure to tackle social problems like family breakdown, drug abuse and mental illness, could cost the UK 4 trillion over two decades, a major report has concluded.
The Backing the Future report, published by Action for Children and the New Economics Foundation, has for the first time calculated the cost of failing to invest in services that prevent problems such as crime and obesity.
Researchers used a detailed economic model to find out how investing in early intervention work could save the government money while improving the lives of children and families.
Lead author Jody Aked said: "Through these calculations we can see that early intervention will make us more money than we would have to invest.
"But not only are we saving money, through our case studies we have tried to capture the benefits early intervention can make to individuals such as children and parents and also to communities."
The report recommends the government issues bonds to raise the money needed for investment into preventative work, which would provide investors with stable and secure investments while backing the long-term interests of society.
If implemented, researchers concluded that £486bn could be saved over 20 years.
Penny Nicholls, director of children and young people at The Children's Society, said: "In a constrained financial environment a detailed cost analysis is really helpful. There is a huge cost to society we do not invest in preventative work.
"Society has a responsibility for children and their wellbeing. It is not just about social services, it is about everyone viewing children as valued members of society."
