The £2bn cost of poor literacy

3:35pm Tuesday 12th December 2006

LOW-literacy levels among 11-year-olds can cost the public purse up to £2 billion a year, new research has revealed.

The study calculates for the first time the cost of 38,700 pupils across England and Wales leaving primary school each year with very low literacy skills.

With six per cent of the nation's 11-year-olds affected, it works out that over half their lifetime, each person will cost between £44,797 and £53,098.

That adds up to £1.73 billion to £2.05 billion annually.

The research, published by the KPMG Foundation Charitable Trust, examined how literacy difficulties can be linked to various social issues and broadly broke down the annual costs.

It found that employment-related costs, such as reduced employment opportunities, can add up to £1.01 billion, and education costs, including special educational needs provision, can total £0.38 billion.

Social costs linked to leaving school early, for reasons such as teenage pregnancy and substance abuse, can cost £0.23 billion.

In addition, it found youngsters with literacy difficulties can be at increased risk of involvement in the criminal justice system, adding up to costs of £0.39 billion annually and also certain health problems, such as obesity and depression, which can total £0.04 billion.