We were pleased to hear in the Comprehensive Spending Review that Sure Start children’s centres will remain protected in cash terms. However, with local authority decision makers facing a 26 per cent cut in their budgets over three years, the moves to devolve financial controls to councils and end ring-fencing, combined with the sweeping reduction in resources, we have serious concerns that crucial targeted early intervention services for vulnerable and neglected children and their families will be sacrificed. We believe that to lose early intervention services that support families and prevent children going into care would be a false economy and cost society more than £1 billion.

Targeted early intervention services for families not only tackle social deprivation and neglect; they reap financial benefits. For example, one family support service run by Action for Children that works with over 40 vulnerable families, reduces the number of children going into care by more than half, saving the local authority more than £37,000 per year for every child. If life changing services such as these are cut across the UK, it will cost the UK economy £1.3 billion per year (1).

Helen Donohoe, Director of Policy at Action for Children, says: “We remain adamant that vulnerable and neglected children and young people must not pay for the country's deficit. We are fully committed to sound investment in early intervention as the best way to save money for the UK economy and protect the most vulnerable and disadvantaged children and their families, and call upon the government to make an explicit commitment to this too. While we welcome the announcement of the early intervention grant we want to see how it will actually be delivered in measurable terms, and we would like to see a dedicated Department of Education key indicator for early intervention.

The consequences of removing these services and the devastating effects this would have on children cannot be under-estimated. This must not be the human cost of the CSR. It is short-sighted and a financial own goal not to recognise that by intervening at an early stage, we can help prevent young people from becoming trapped in the revolving prison door or getting caught up in the same cycle of deprivation and neglect that has trapped their parents and grandparents. Making savings in the wrong places now will only cost the public purse further down the line when problems spiral and become intractable.

“Over the next three years, we will closely monitor and report on the impact of spending decisions that are taken nationally and locally to ensure that vulnerable children and young people are not bearing the brunt of the cuts to local authority budgets.''

Ends

Notes to Editor:
1 If you would like further information, or to set up an interview, in the lead up to, or following the announcement of the CSR, please contact Action for Children’s media team on 020 3124 0667, mediateam@actionforchildren.org.uk or (out of hours) 07802 806 679.

2 New Philanthropy Capital used the SROI models developed by the New Economics Foundation (nef) to provide figures on Action for Children’s East Dunbartonshire Family Service on the success of the programme in preventing children from going into care. This figure takes into account the savings of £0.8bn the government would make from not providing family support services to all children in the UK at risk of going into care. However, cutting these services would be a false economy, as many more children would be taken into care, at a cost of £2.1bn. This gives a net cost of £1.3bn (£2.1bn - £0.8bn).

3 All data on return on investment taken from original research in Backing the future: why investing in children is good for us all, New Economics Foundation (nef), Action for Children (2009). Backing the Future is based on research conducted over a period of twelve months across England, Wales, Scotland and Northern Ireland and involved a combination of secondary and primary research. This included a literature review, economic modelling, six service level case studies, three Social Return on Investment (SROI) assessments, and two citizen jury events on the question How can government act to increase the well-being and happiness of children and young people in the UK?. The project was guided throughout by a Young Persons Reference Group, a group of 8 young people aged 16-19 years from across the UK either currently or previously in contact with services provided by Action for Children. An Expert Learning Panel, made up of academics, politicians, voluntary organisations, media representatives, think tanks and children’s service providers also met on three occasions to discuss emerging project findings and to help shape the reports’ recommendations.

4 Action for Children supports and speaks out for the most vulnerable and neglected children and young people, for as long as it takes to make a difference in their lives. The charity works with the most vulnerable and neglected children and young people: whose families need support, who are in care, who are disabled, and who experience severe difficulties in their lives. Action for Children is a national charity delivering services that respond to the local needs of children, young people, their families and communities.

5 New Philanthropy Capital (NPC) is a charity consultancy and think tank dedicated to helping funders and charities to achieve a greater impact. NPC provides independent research, tools and advice for both charities and funders in the UK and internationally. Amongst its services supporting charities to measure and communicate their results, NPC helps them to demonstrate their economic value through cost-benefit analysis or SROI. For further information, see www.philanthropycapital.org.

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