The Fiscal Case for Working with Troubled Families
Analysis and Evidence on the Costs of Troubled Families to Government
In December 2011, the Government committed to invest an additional £448m in turning around the lives of the 120,000 most troubled families in England. This publication details the fiscal analysis that informed this decision. It explains how public money is being spent on troubled families and the degree to which this money is spent reacting to the problems of these families. It concludes that the Government will spend an estimated £9bn per year on these families over the Spending Review period (2010-15), with only £1bn of this going into targeted interventions intended to improve outcomes for troubled families.
While the figures in this analysis are significant and informed government’s decision-making process, the critical point for the Government was not necessarily the precise figure, but whether a sufficiently compelling case for a new approach was made. In this context, the indicative distribution of reactive to targeted spend was as important as the total figures estimated. This showed that we are spending eight times more reacting to the problems of troubled families than we are delivering targeted interventions to turn around their lives. This analysis made a clear case for a change in the way that public money is spent on troubled families and, thereby, the outcomes that this investment achieves.
As this analysis was originally produced to inform the case for investment in troubled families, it predates the start of the Troubled Families programme in April 2012. As this programme works with and turns around increasing numbers of troubled families, the information and assumptions on which this analysis was based will improve. However, this analysis was based on the best evidence available at the time (end of 2011) and, where better data has subsequently become available, we have undertaken further analysis in this paper. These instances are highlighted in this report.
Building on this analysis, the Government is committed to strengthening its understanding of the costs and financial benefits of the Troubled Families programme. Earlier in January, the Department for Communities and Local Government published The Cost of Troubled Families, outlining the early stage work that is underway by 16 leading local authorities to get to grips with the financial case for their work. Furthermore, a new independent national evaluation of the programme will begin shortly. This will include an economic evaluation looking at the wider economic and social costs and benefits of the programme.
Published : 28th February 2013
Publisher : Department for Communities and Local Government [ More From This Publisher ]
Rights : Crown Copyright
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