Why Investing in Children Today, Secures Britain’s Future

In January 2024, then Opposition leader Sir Keir Starmer, pledged that a Labour government would end the scandal of worsening child health. There would be no more “sticking plaster fixes” and a bold shift in the role of the state: from responding to worsening crises like childhood obesity and spiralling mental ill health to preventing them from emerging in the first place. 

Starmer’s argument makes a lot of sense – early intervention delivers the biggest returns when targeted at children who have the longest time to benefit from policy change. Relatively small upfront investments to get children eating well, exercising, socialising, and looking after their mental health can forestall much larger costs to public services, employers and the economy in the long run. 

New research by the IPPR gives additional weight to this argument. Using data from the 1970 British Cohort Study, we have examined the potential long-term implications of poor health at an early age. Looking at outcomes for children born in a single week in 1970, we have found that poor health in childhood casts a long shadow. Poor health at age 10 is strongly correlated with poor health more than four decades later at age 51. Children who had severe mental or behavioural problems at age 10 are close to twice as likely to have symptoms of depression at age 51 and are 68 per cent more likely to have a long-term condition that affects their ability to work. The message is simple – poor childhood health is a direct threat to our long-term health and prosperity. 

Fortunately, the government has a real opportunity to drive the improvements we urgently need in young people’s health. In some cases, this will require bold action and political courage. But more interventionist policies often enjoy strong public support-particularly when they’re designed to protect children. 

Even in times of strained public finances, investing early in proven, whole-family support pays off- both for families and the public purse. Many of the benefits would begin to show within the current parliamentary term, and over time, they are likely to outweigh the initial costs. To protect this vital spending, we should consider a dedicated “Children’s Investment Standard.” Without it, we risk remaining stuck in a costly and damaging cycle: cutting preventive services to save money in the short term, only to spend far more down the line dealing with the complex problems those cuts create. 

But not all reform will require upfront spending. In some instances, government will have to make tough but necessary choices about what to prioritise and redirect resources accordingly. The real opportunity lies in identifying and investing in interventions that deliver immediate returns while laying the foundation for healthier, more productive lives.

Take teenage mental health, for example. Targeted support at this crucial stage not only improves young people’s wellbeing-it also addresses one of the UK’s most urgent economic problems: rising inactivity. Around 850,000 16–24-year-olds are currently not in education, employment or training (NEET), and around one in six of them is thought to be struggling with a mental health condition. The long-term consequences of becoming NEET are serious, increasing the risk of future unemployment, low pay and insecure work. That’s why investing earlier in children to prevent these outcomes in adolescence isn’t just compassionate-it’s smart economic policy. 

The same logic applies to early childhood development. From birth to age five, children experience rapid brain growth and form the foundations for lifelong learning. Intervening at this stage can have lasting impacts- boosting school readiness, improving educational attainment, and strengthening the skills that underpin future health, social mobility and economic success.  

But crucially these early investments also reduce demand for expensive and reactive public services in the here and now – from emergency healthcare for avoidable conditions such as tooth decay or uncontrolled asthma to special educational needs and disability provision. 

Of course, spending is not the only tool that the government has to support children’s health – shaping the environments in which we live can be just as powerful. From junk food marketing to harmful online content, poor housing and air pollution, the factors driving poor childhood health are clear to see. Smarter regulation can help shift the dial.  

Expanding proven tools like the sugar tax – applying it to juice-based rinks or heavily marketed snack foods for instance- could raise revenue and boost health, a ‘quick win’ that can fund long-term change. And the evidence backs it. The original levy led to product reformulation, reduced sugar intake and lower obesity rates without harming business. Far from stifling growth, these policies drive healthy innovation and can help government realise its ambition for the next generation of young people to be the ‘healthiest and happiest’ in Britain’s history.  

Getting on top of poor childhood health requires urgent government action. The UK is falling behind many of its peers across a range of key outcomes – but this should not be a cause for despair. Instead, it highlights the vast economic and social potential that could be unlocked through meaningful reform. By investing early and getting the foundations right, we can build a future in which people live longer, healthier, and more fulfilling lives.  

By Dr Jamie O’Halloran, Senior research fellow, The Institute For Public Policy Research (IPPR)