UK Spends 78 Billion Per Year on Poverty

August 1, 2016 Taxation in UK

Wealth Tax in South AfricaLONDON – The UK spends billions each year on supporting people in poverty and dealing with the negative effect of poverty on people.

New research completed by the Centre for Research in Social Policy at Loughborough University on behalf of the Joseph Rowntree Foundation, and released over the weekend, shows that poverty costs taxpayers an estimated GBP 78 billion per year.

It was estimated that approximately GBP 29 billion of government spending goes towards treatment of health conditions associated with poverty, while GBP 10 billion is spent on in-school meals for under-privileged kids.

Approximately GBP 9 billion in spent on dealing with the disproportionately high crime-rates in low-income areas.

Further, an estimated GBP 7.5 billion in spent on children services, while GBP 4.6 billion and GBP 7.9 billion is spent on adult social care and housing.

It was conceded in the research that the estimates provided were “broad brush estimates”, but it was also said that poverty in the UK has “very large, tangible effects on the public purse”.

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