Charity warns of cost of literacy crisis from failure to support young children
Over 1800 five-year-olds in Oxfordshire in a single year group did not meet the expected level of literacy
Last updated 26th Feb 2024
There's a warning a failure to support early years communication and language development is leading to a literacy crisis for children as young as five.
A new report, commissioned by the National Literacy Trust and KPMG UK, suggests this could be costing the economy up to £830 million for every year group starting school through the loss of lifetime earnings and increased government spend.
It also estimates that around 106,000 five-year-olds in England in a single year group did not meet the expected level of literacy, but could reasonably have achieved the expected standard if provided with the right support early on.
The findings come as the National Literacy Trust launches its new five-year campaign, Early Words Matter, which offers early support to 250,000 children in the most disadvantaged areas of the country, while also raising awareness of the critical role the early years play in social mobility.
In Oxfordshire, the report found a quarter of children (25%) are failing literacy at an early years level, with a cost to catch them up of an estimated over £12.4 million.
The report in more detail
The report found that insufficient literacy skills support early on will generate economic costs of around £830mn over the lifetimes of each year group of five-year-olds, or £7,800 per child on average.
That figure's made up of a £5,300 loss in potential earnings per child over their lifetime, and £2,500 in additional education, social and welfare spending and reduced tax receipts for the government.
For each school year group, the government will lose an estimated £270 million – £50 million in increased education and welfare spending and £220 million in lower tax take.
In certain areas of England with greater levels of deprivation, the economic costs were found to be particularly high, with two-fifths (43,000) of children not meeting the expected level of literacy live in deprived areas of the country.
In Birmingham, Liverpool and Manchester, more than a quarter of five-year-olds have low levels of literacy.
Across these three cities alone, the total lifetime economic cost of five-year-olds not meeting the expected standard for literacy is around £30mn for each school reception year group.
"Today’s research confirms the dire need for immediate intervention"
Jonathan Douglas CBE, CEO of the National Literacy Trust, said:
“We know that experiencing poverty has a huge effect on a child’s early communication, language and literacy skills, and that this will have consequences for their learning, their confidence, their wellbeing, and their ability to thrive for the rest of their lives.
"Today’s research confirms the dire need for immediate intervention and the National Literacy Trust’s pioneering early years campaign, Early Words Matter, will get to the heart of the problem by working directly with the communities and families that need our help the most.
"That’s why we are urgently calling on both the Government and the business community to commit to supporting our campaign to reach 250,000 young children in the next five years with flagship programmes and local community outreach in areas worst hit by poverty and the cost-of-living crisis.
"If we act now, together we can help change the story for children across the country.”
"Far too many children are needlessly falling short of the expected standard"
Rachel Hopcroft, Partner and Head of Corporate Affairs at KPMG UK, said:
“The importance of early years language skills cannot be underestimated, forming the basis of children’s ability to read and communicate with confidence.
"At age five, far too many children are needlessly falling short of the expected standard, before they’ve even been given a proper chance in life.
"As this research makes clear, this not only impacts our economy, but it curtails access to career opportunities and earnings potential later in life - especially among those from deprived backgrounds.
“As a firm, we are determined to drive opportunity in our communities, ensuring that where you’re from or your background does not dictate your life chances.
"Literacy forms a key building block of social mobility, and as a business we work with experts like the National Literacy Trust as we recognise the role we must play in making equal opportunities a reality for all.”