Spending better for children is a social imperative and a smart economic choice. Children growing up in poverty or disadvantage face poorer health, educational and labour-market outcomes over the life course, with costs for individuals and society that may add to existing pressures on public finances. The policy challenge is not simply how much to spend, but how to allocate and design social spending to improve child well-being while supporting fiscal sustainability.
Using a value-for-money framework, this report examines how the level, allocation and design of social spending affect child poverty, material deprivation, educational achievement and health, while considering implications for long-term social expenditure. It highlights the importance of coherent policy mixes rather than individual interventions. Employment-oriented policies, including Early Childhood Education and Care (ECEC), work-family reconciliation measures and Active Labour Market Policies (ALMPs), can strengthen family incomes and support children’s development. Adequate and predictable income support remains essential, appearing particularly valuable when combined with accessible health, housing, education and childcare services that address broader sources of disadvantage. Sustained support throughout childhood is also important, from early intervention to continued investment in middle childhood and adolescence. Overall, better value for money comes from policy packages combining effectiveness, equity and fiscal sustainability.
