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Child poverty damages Wales' wealth says AM

November 4, 2008 12:00 AM

Child poverty is costing the Welsh economy as much as £6.25 billion a year, the Welsh Liberal Democrat Social Justice spokesperson, Peter Black has said.

Mr. Black was commenting on a recent Joseph Rowntree Foundation report which estimates the cost of child poverty to the UK as a whole is £25bn. In Wales, there are 180000 children living in poverty, which is 25% of the UK figure. By that token, the cost to the Welsh economy would be £6.25bn in terms of both extra costs, and lost income as those who grow up in poverty are less likely to find work and are likely to be paid less if they do.

"There is a real sense in which simply working out the financial cost of child poverty is to miss the point. It is the cost in stunted expectations, and low achievement for the individual children trapped in poverty which is hardest to bear," said Mr. Black.

"The provision of housing, schools, social services, are all costs that are paid out by local councils, either from the money they get from the Welsh Assembly Government or by council tax payers more directly.

"This means that in the present economic situation, things can only get worse unless Labour and their Plaid supporters take action now to increase the amount that local councils get rather than their usual 'more spin and less money' approach.

"Labour and Plaid should also be fighting Wales' corner with the UK government to make sure that we get the support we need from Westminster to tackle child poverty properly."

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