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Falling through the cracks: how childhood hardship shapes life chances

What is too often seen as individual failure is the result of conditions and systems failing to respond. With a strong safety net, not one weakened by cuts, young people can reach their potential.

Our new analysis also shows the long-lasting impact of experiencing poverty on a young person’s prospects. Once out of education or work, a young person with experience of poverty has a lower chance of moving back into earning or learning. Over half (56%) of young people that had experienced persistent poverty and were not earning or learning at age 17 were also not earning or learning at age 23. The figure was even higher where they had experienced poverty in early childhood (57%). It fell to 1 in 3 (33%) among young people that did not experience poverty as a child (Adjei et al., 2026).

Growing numbers of children experienced poverty during the period when today’s 16-24 year-olds were growing up, and the experience of poverty became more severe as poverty deepened (JRF, 2026). This will have contributed to the rising number of young people not earning or learning today.

Moreover, some 4 million children continue to experience poverty today (DWP, 2026a). While the Government’s Child Poverty strategy is projected to help an impressive half a million children out of poverty by the end of the parliament (Cabinet Office, 2025), millions will remain in poverty.

Failing young people in this way has far reaching consequences. Not earning or learning during young adulthood increases the likelihood of being unemployed after 5 years by 28% (Public Health England, 2014). It also leads to worse physical and mental health, weaker employment prospects, and lower earnings into midlife (Pelikh et al., 2026).

Allowing the number of young people who are not earning or learning to grow therefore comes with a significant human cost, as well as increased pressure to the services that carry the cost for these economic failures, including the social security system.

Groceries on a table at a food bank.

This briefing is part of the social security topic.

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