Billions could be saved if services for vulnerable young people were overhauled

A report launched Tuesday 29 March 2011 entitled, Improving Services for Young People – an economic perspective, reveals that if a more coordinated approach to services for vulnerable young people were adopted the cost benefits to the state, and improved outcomes for young people, would be to the value of £3.2 billion.

Catch22 commissioned the report through nef (the new economics foundation), as part of its Ready or not campaign. The campaign revealed that at the ages of 16,17 and 18 many services for young people without families, able or willing to support them, fall away. Catch22 is calling for decisive action to overhaul our approach to young people’s transition to adulthood, with the years 16 to 25 formally recognised as a life stage responded to by central and local government.

Joyce Moseley, Chief Executive of Catch22 says:

'The report, Improving Services for Young People – an economic perspective, shows that adopting a more joined-up approach to services for young people would see a return of £5.65 for every £1.00 invested. This is important, especially as the current cost of poor outcomes for young people is high. Recent estimates suggest that youth unemployment costs the exchequer £8.1billion a year, while the cost of crime is an additional £1bn each year. Failure to address these issues now creates a false economy in which we may save money now but the cost to young people and the economy will be far more in the future.

Young adulthood is a time when particular support is needed. We need to ensure that young people in their late teens and early 20s are clear about what help is available to them. Becoming a fully independent adult doesn’t happen overnight. It’s a gradual process which moves at different speeds for each young person. We need to recognise that this period of late teens and early 20s is a vital time of transition and needs to be treated as such.

We are calling for a ‘new economics of young people’. An overhaul of the current system would greatly improve the economic outcomes for young people and the state. Faiza Shaheen, lead author of the report from nef, says:

'Our research shows that more personalised and coordinated services for young people aged 16 to 25-years-old can result in life-changing outcomes for vulnerable young people, which ultimately save the state money. The financial value of better outcomes for the most vulnerable young people is to the tune of £3.2 billion, suggesting that a shift in service delivery for this age group is well worth it.'

Joyce Moseley, Chief Executive of Catch22, adds:

'Young adulthood is a time when particular support is needed. We want to see better coordination and organisation of existing services for young people both locally and by national government. By making the changes we are calling for not only will young people and the communities in which they live gain but through the savings made by this new approach the economy will benefit too.'

Download the Improving Services for Young People report (pdf, 770KB).