On any given night in Victoria, around 4,000 children and
young people live under the care and protection of the State. For many young
people, this care extends over a long period of time, sometimes until their
18th birthday. It is well documented that young people leaving State care
often lack the social and economic resources to assist them in making the
transition into independent living. As a consequence, the long-term life outcomes
from this group are frequently very poor. A recent report from The
Centre for Excellence in Child and Family Welfare in partnership with
Monash University estimated that, for a typical cohort of 450 young people
who leave care in Victoria each year, the direct cost to the State resulting
from these poor outcomes is $332.5 million. The estimated average outcomes
of the leaving care population are based on a recent survey involving sixty
young people who had spent at least two years in care as teenagers. This paper
provides an overview of the economic methodology used to estimate this cost,
and provides discussion of the motivation for measuring outcomes in terms
of costs to the State.
Keywords: Cost-benefit, Policy; State care, Outcomes.
