Spending better for children is both a social imperative and a sound economic investment. Children who grow up in poverty or disadvantage are more likely to experience poorer health, educational and labour market outcomes throughout their lives, generating significant costs for individuals, societies and public finances. The challenge for policymakers is therefore not only how much to spend, but how to allocate and design social spending in ways that improve child well-being while supporting fiscal sustainability.
Drawing on a value‑for-money framework, this report examines how the level, allocation and design of social spending influence child poverty, material deprivation, educational achievement and health, while considering their implications for long-term social expenditure. The findings highlight the importance of coherent policy packages rather than isolated 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 while supporting children’s development. Adequate and predictable income support also plays a central role, particularly when complemented by accessible health, housing, education and childcare services that address multiple and interconnected sources of disadvantage. The report further underscores the importance of sustained investment throughout childhood, from early intervention in the first years of life to continued support during middle childhood and adolescence. Overall, achieving better value for money requires policy mixes that successfully combine effectiveness, equity and fiscal sustainability.
This report was prepared by the OECD Centre on Well Being, Inclusion, Sustainability and Equal Opportunity (WISE Centre). It was developed under the leadership of Romina Boarini (Director, OECD WISE Centre) and under the supervision of Olivier Thévenon (Head of the Child Well-being Unit, OECD WISE Centre). The report was authored by Nora Brüning and Olivier Thévenon, with valuable research assistance from Théophile Mulot during his internship in the Child Well-being Unit. Anne‑Lise Faron (OECD WISE Centre) prepared the manuscript for publication, and Taylor Kelly and Martine Zaïda (OECD WISE Centre) provided valuable support and advice on communication and publication.
The report benefited from valuable comments on earlier drafts provided by delegates of the OECD Working Party on Social Policy. The authors are sincerely grateful for their insights and contributions and hope that the report will serve as a useful resource in supporting their work. The report also benefited from comments and feedback from Willem Adema and Herwig Immervoll (OECD Directorate for Employment, Labour and Social Affairs); guidance from Romina Boarini; and comments from Fabrice Murtin and Gabriel Chaves Bosch of the OECD WISE Centre. The authors also wish to thank Mathis Porchez and Olivier Bontout of the European Commission for their valuable feedback at all stages of the project.
This report was made possible through financial support and strong substantive engagement from European Commission, Employment and Social Development Canada, New Zealand’s Ministry of Social Development and Social Investment Agency, and the Bundenmisiterium Arbeit, Soziales, Gesundheit, Pflege und Konsumentenschutz in Austria. The authors also wish to express their gratitude to OECD Secretary-General Mathias Cormann for supporting this project through the Secretary-General’s Allocation Fund (SGAF).