The impact of climate-related disasters like bushfires and floods on children and young people is costing the Australian economy up to $6.2 billion in a high disaster year, and leaving a lasting mark on their education and mental health.
A new analysis by Deloitte Access Economics for UNICEF Australia has found more than 1.4 million Australian children and young people are experiencing a disaster or extreme weather event in an average year, and those in remote areas, from lower socio-economic backgrounds, and Indigenous children are more likely to be impacted.
The analysis estimates that Australian young people who experience a disaster are 4.2 per cent less likely to finish year 12, leading to a loss of $2.9 billion in earnings in an average year or more than $100,000 less per young person over a lifetime.
"This is the first time anyone has been able to estimate the economic costs of climate-related disasters on children and young people, who are more vulnerable to the impacts due to their age and stage of physiological development. The findings show young Australians are paying a high price. "
“When young Australians experience these disasters in the early stages of their lives, the impacts can continue to be felt well into their adult lives, with cascading impacts on incomes and wellbeing.
“Disasters can result in disruptions to schooling, or in extreme cases, destroy essential infrastructure that ultimately hinders a young person’s ability to complete school. “
Many households are already struggling and with continued cost of living pressures, any lost learning and potential reduction in future earnings is a huge concern.
"It is evident Australia must prepare, protect and prioritise children and young people and their communities for climate related disasters, which will only become more severe and frequent in the future,” Mr Rego said.
The cost for healthcare for children who have psychological distress following a disaster is estimated to be $162 million in an average year. Research also shows long term anxiety is significantly more prevalent in people exposed to disasters and may increase the risk of substance misuse by young people.
Simone Cheung, Partner Health, Human Services & Behavioural Economics at Deloitte Access Economics said: “The data shows that disasters and extreme weather events and the personal impacts of these events on children and young people translate to real financial impacts on their lives in the years to come, as well as increasing costs to the Australian economy.”
UNICEF Australia calls for:
• Increased investment in data and research to provide a full picture of immediate and longer-term trends and help ensure vulnerable communities can be more resilient to future disasters.
• The Federal Government’s national climate risk assessment, which is currently in development, will model possible scenarios to reduce disaster risks. UNICEF Australia wants to see children and young people’s needs carefully considered when assessments are taking place.
• A national approach to supporting children and young people in the aftermath of a disaster. When funding decisions are being made for disaster recovery programs, the specific needs of children and young people must be considered.
Note to editors: UNICEF Australia engaged Deloitte Access Economics to estimate the impact and costs of disasters on children and young people in Australia using data from the Longitudinal Study of Australian Children (LSAC) which follows children from 0 to 22 years.
The impact of disaster on children and young people can be found here.