Breaking the cycle of child poverty in NSW

*This column was updated on 29 November to correct data on Gross State Product and the percentage of child poverty rates in NSW.

28 November 2024

Lasting Impacts: The Economic Cost of Child Poverty in NSW

Instinctively we understand the human cost of child poverty, which robs 278,000 children in our state of their potential, limits their opportunities and shapes their futures.

But new research from NCOSS, undertaken by Impact Economics, has quantified the economic price of child poverty: nearly $60 billion a year — or 7.8 per cent of the annual Gross State Product.

This staggering figure surpasses the annual contributions of major industries to the NSW economy, including the manufacturing and construction industry.

This includes direct costs, such as increased government spending on services and lost productivity, as well as indirect costs, including diminished health and life expectancy. These long-term consequences can have devastating effects on individuals and society as a whole.

A quarter of people in NSW who live in poverty are children. Their future is marked by limited opportunities and increased vulnerability. This crisis is particularly acute in areas like Sydney's western and southwestern suburbs, where the rate of child poverty is even higher.

To combat this issue, we must invest in evidence-based interventions that address the root causes of poverty. Programs like Winanggaay at Marathon Health in Bathurst, which supports Aboriginal children's early learning and development, demonstrate the power of early intervention. By providing targeted support, these programs can help break the cycle of disadvantage and create a brighter future for our children.

However, more needs to be done. Increasing income support payments, investing in affordable housing, and expanding access to quality early childhood education are crucial steps. Additionally, we must empower First Nations communities to shape their own destinies and ensure that their voices are heard.

By prioritising the well-being of our children, we are not only fulfilling our moral obligation but also making a sound economic investment. The long-term benefits of reducing child poverty far outweigh the short-term costs. We will use this nation leading research to inform government investment and reorient systems of support. It is time to break the cycle of disadvantage and create a society where every child has the opportunity to thrive.

NCOSS spoke to Megan Callinan, CEO of Marathon Health about supporting children to get a better start in life.

How have you come to be working in the social services sector?

I have been working in the social services sector for more than 20 years — most of it in western NSW. Through this work, I have developed a strong passion for working with regional communities to unlock economic and social benefits and enable equitable access to health and wellbeing services.

What are the big issues facing Marathon Health at the moment?

We cannot address gaps in health services for people living in regional, rural and remote areas without addressing the health workforce gaps that also exist. The two are co-dependant.

Marathon Health is working hard to debunk the myth that you can’t attract a skilled workforce in rural NSW. We now employ more than 300 people — all living and working in regional NSW to make sure people can receive equitable health services, no matter where they choose to live.

While Marathon Health and other not-for-profits in rural NSW are leading the way to create a sustainable and skilled health workforce, there is still significant progress to be made to gain sustained investment in regional workforce development initiatives.

Tell us about a recent achievement of your organisation.

Marathon Health recently won as the Outstanding Community Organisation Award at the 2024 NSW Business Awards. This was a huge honour and testament to the work the whole Marathon Health team do every day to increase access to quality services and improve health and wellbeing across regional NSW.

If you could change one thing about how we support children to get a better start in life, what would it be?

Navigating the health system is challenging for most families. If you add in barriers that families in rural communities face — such as access to GPs and specialists, cultural considerations, cost of living pressures and remoteness — access becomes even more challenging. Investment in training and embedding health linkers across rural communities to support families to overcome these barriers and bring the service system together around the family is key to setting children in rural NSW up to thrive.

This week NCOSS released a landmark report into the costs of childhood poverty.

Up until now, the costs linked to childhood poverty — such as the increased cost of healthcare, the criminal justice system, and homelessness services, as well as the cost of lower workforce productivity — had never been calculated.

Our report has found child poverty costs NSW a staggering $60 billion a year.

Our current systems are failing these children. However, there is hope. Ending poverty is achievable, and we know the solutions.

Read the full report here: Lasting Impacts: The Economic Costs of Child Poverty in NSW

In October, NCOSS surveyed the NSW social service sector including NCOSS member organisations on their financial sustainability in 2024 and beyond. Over 120 respondents shared their experiences and insights into their organisation’s financial challenges and their coping strategies. The results confirmed that the sector is in an ‘existential crisis’ :

Almost two thirds of the organisations saw their costs exceed the funding received
86% said that their costs exceeded the Government indexation they received
Over half of the organisations are likely to make further cuts to survive
90% said their financial situation is as bad, or worse, than the early days of COVID

Detailed results of the survey are here.

The survey adds to a growing body of evidence that a funding reform is urgently needed to sustain the sector that delivers critical services for communities living in poverty and disadvantage on behalf of the government. NCOSS will be using the findings to advocate for sector sustainability, including in its Pre Budget Submission for 2025-26 and Secure Jobs and Funding Certainty (SJFC) initiative.

NCOSS would like to thank everyone who took part in the survey and shared their experience and knowledge so generously.

NCOSS is proud to be a part of a coalition of 130+ organisations and groups calling on the NSW government to raise the minimum age of criminal responsibility from 10 to at least 14.

In NSW, ten- year-olds can be sent to prison. That is too young. Criminalising young children harms them and is criminogenic, that is, it and does not prevent crime. It creates crime. We need to do better for all children and for all communities in NSW and to do that we need to build awareness and support.

Raise the Age NSW, in partnership with the media and advertising industries, have launched a campaign to educate the public on the age of criminal responsibility and to build support for raising the age.

To change the law, and do better for all kids and all communities, we need to change hearts and minds. We encourage our member organisations to join the partner network at www.raisetheagensw.org.au.

NCOSS recently attended the Tackling Stigma Conference hosted by UNSW’s Centre for Social Research in Health. The conference focused on conversations around understanding and addressing stigma, systemic and structural issues that contribute to experiences of stigma in health care settings, and novel strategies to overcome stigma as a barrier to health care.

Discussions included that stigma is designed to delegitimise people’s identities, experiences and needs, impacting the level of equity, access and quality in service systems like health care. Speakers suggested that disrupting stigma in health care needs:

Strategies to centre people with lived and living experience in service delivery and program design and governance
Supporting, resourcing and promoting a strong peer workforce
Governance bolstered by robust and protective complaint mechanisms
Zero-tolerance approaches to stigma supported at all levels of staff and leadership
Regular reflective practice by individuals to identify, be aware of and address their own biases.

The Tackling Stigma Conference sparked some interesting and importance conversations about stigma and power.

Suggested further reading includes: ‘Stigma – the machinery of inequality’ by Imogen Tyler (2020), ‘Stigma Power’ by Link & Phelan (2013) and ‘The stigma system: How sociopolitical domination, scapegoating, and stigma shape public health’ by Friedman et al (2021).

The annual 16 Days of Activism Against Gender-Based Violence kicked off on November 25.

The event coincides with the International Day for the Elimination of Violence against Women. This year’s theme is: 'Every 10 Minutes, a woman is killed. #NoExcuse. UNiTE to End Violence against Women'.

The United Nations report that globally, 85,000 women and girls were killed intentionally in 2023.

Fams has compiled a list of events happening across NSW, including in rural, regional and metro areas.

To add your own event, please email info@fams.asn.au.

Read the list of events here.

Researchers are seeking frontline staff in social housing and homelessness services nationwide, including SHS workers, public housing workers, and community housing workers, across a variety of roles to participate in an online survey.

The findings from the research will be used to advocate for improvements in the prevention and management of workplace trauma in the homelessness and social housing sectors.

The survey takes 20-25 minutes to complete and you can access it here.

For more information about the project, please read the information sheet.

The research is being conducted Chris Hartley at UNSW and colleagues from Swinburne University of Technology, UNSW and the University of Tasmania.

The researchers are also conducting a small number of interviews with frontline workers in NSW, Victoria and Tasmania. If you would like information about one-on-one interviews leave your details here.

Family Matters 2024 Report Webinar
National Voice for our Children
6 December, Online
Free | Register here

SNAICC – National Voice for our Children is hosting a live webinar to share key insights, findings and a deep dive discussion on service transition to Aboriginal community-controlled organisations.

A panel of speakers will unpack how the ACCO sector needs to be further empowered with resources so they can meet the needs of children and families, and the role of non-Indigenous organisations in this transition.

Men’s Mental Health and Suicide Prevention Small Grants Program
Closing Date: 15 December 2024

This grant is offering up to $50,000 per project to deliver community activities, programs, and events supporting men's mental health and suicide prevention.

It aims to promote mental health, wellbeing and resilience among men, in general, or a specific population group of men such as Aboriginal men, boys and young adult men, older men, men living with a disability, men living in rural and remote areas, or LGBTQ+ men.

For more information, please visit the grant information page.

Financial Wellbeing and Capability Activity
Closing Date: 2 December 2024

Grant opportunities for programs delivered through the Financial Wellbeing and Capability (FWC) Activity are now open for application, for new 5-year grants from 1 July 2025 to 30 June 2030.

Grant opportunities for the following programs are available at GrantConnect:

Some of the latest from our Jobs Board:

First Nations Social Justice Graduate Program (Sydney CBD) - Justice and Equity Centre - VIEW JOB

Human Resources Business Partner (South West Sydney) - NSW STARTTS - VIEW JOB

Community Health Promotion Officer – Sexual, Domestic and Family Violence (Sydney CBD) - ACON - VIEW JOB

Direct Services Rural and Regional Counsellor/Project Officer (Armidale) - NSW STARTTS - VIEW JOB

Counsellor (Inner West Sydney) - The Gender Centre - VIEW JOB

Manager Community & Culture (Central West NSW) - Lithgow City Council - VIEW JOB

Domestic and Family Violence Specialist Worker/Case Management Worker (Sydney CBD) - Justice Support Centre - VIEW JOB