The benefits of helping teenagers cope with drug and alcohol problems significantly outweigh the costs, according to leading economists.
For the first time, independent experts have put a price on the value of substance misuse services for young people.
Frontier Economics, a leading European consultancy, says every pound invested in such services saves the taxpayer between £5 and £8 over a lifetime, based on the most conservative assumptions. Even over a two year period, the immediate benefit gained from each £1 invested is estimated as worth about £2.
This return on investment comprises short-term savings in crime and health costs as well as long-term reductions in the costs associated with adult dependency, including the prospects of education and employment.
The cost-benefit analysis of substance misuse services for under-18s was commissioned and published by the Department for Education.
It was based on NTA figures which showed a record 24,000 young people received drug and alcohol interventions in 2008-9, the vast majority for problems with cannabis or alcohol.
The NTA oversees young people's substance misuse services on behalf of the government, and recently allocated £25.4m of central funding for 2011-12, the same level of investment as now.
Paul Hayes, chief executive of the National Treatment Agency, said:
"Heavy use of cannabis or alcohol can lead to exclusion from school, family breakdown and crime.
"For those teenagers who seek help, substance misuse is usually one of a range of problems causing difficulties in their life, which is why treatment services must work with partners in youth services to offer a range of support.
"This research shows their efforts pay dividends for society as well as benefiting individuals, and underlines the importance of maintaining investment at local as well as national level."
The 2010 Drug Strategy acknowledged that drug or alcohol misuse can have a major impact on young people's education, their health, their families and their long-term chances in life.
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Notes to editors
The National Treatment Agency for Substance Misuse (NTA) is a National Health Service (NHS) special health authority which is responsible for ensuring services are available for young people whose drug or alcohol misuse is causing harm, or who are at risk of becoming dependent.
The 2010 Drug Strategy made clear that the focus of all activity should be preventing the escalation of use and harm, including stopping young people from becoming drug or alcohol dependent adults.
The NTA advises government on the allocation of funds for young people's substance misuse services. Allocations through the Pooled Treatment Budget increased from £24.7m in 2008-09 and 2009-10, to £25.4m in 2010-11 and 2011-12.
Details of the financial allocations for 2011-12 are set out in a letter from Paul Hayes to partnerships. The money was distributed according to a new formula based on the Index of Child Well-being, which has been phased in over several years.
The Frontier Economics study, Specialist Drug and Alcohol Services for Young People – A Cost-Benefit Analysis estimated that the total amount spent on local services for young substance misusers in 2008-9 was £62.2m, including other funds allocated by local authorities and the Home Office.
The research used a variety of academic studies and policy reports to estimate the lifetime costs of substance misuse against the probability that young people currently receiving interventions would become adult users.
The study cited the immediate benefits of drug and alcohol treatment as lower levels of acquisitive crime, and fewer hospital inpatient admissions and deaths.
Long-term benefits were cited as a lower likelihood of developing substance misuse problems as adults, and improved educational attainment and labour market outcomes.
The report concluded:
"Overall, the study has shown that the immediate and long-term benefits of specialist substance misuse treatment for young people are likely to significantly outweigh the cost of providing this treatment. In particular, we have estimated a benefit of £4.66 - £8.38 for every £1 spent on young people's drug and alcohol treatment.
"Furthermore, our central case estimates are based on a conservative set of assumptions. Therefore the benefit of specialist drug and alcohol treatment for young people may be larger than we report here."
For further information please contact Lynne Nasti, Senior Communications Officer (Media), on 020 7972 1920 or Communications Team duty desk 0207 972 1802 (business hours) or 07747 535961 (out of hours)