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Covid could cost children £350bn in earnings due to lost learning, says IFS

Report says children repeating a year of school should be considered as part of radical catch-up efforts
Today’s children face losing £350bn in lifetime earnings unless the UK’s governments invest in radical catch-up efforts when the pandemic is over, according to a report by the Institute for Fiscal Studies.
The IFS is urging policymakers to consider options including nearly nine million children repeating a year of schooling, the use of large-scale tuition in summer holidays and extended hours to make up for the classroom time lost during the Covid-19 lockdowns.
Luke Sibieta, an IFS research fellow and author of the report, said the funding allocated to catch-up programmes by ministers in London, Cardiff, Belfast and Edinburgh totalled just £1.5bn, which he called “plainly inadequate”.
“The inescapable conclusion is that the lost schooling represents a gigantic long-term risk for future prosperity, the public finances, the future path of inequality and wellbeing,” Sibieta said.
But Sibieta cautioned: “Large as these figures are, they do not automatically imply that all schools should go back to normal straight away. It is perfectly possible that the health effects of the pandemic outweigh even these large costs when cases and deaths are high.”
By February’s half-term holiday, British children will have lost at least half a year of classroom time since March 2020.
Sibieta suggests that £30bn – equivalent to half a year’s UK spending on state schools – should be allocated to catch-up programmes designed with input from teachers and school leaders.
“The lack of urgency or national debate on how to address this problem is deeply worrying,” Sibieta said. “The risks of spending ‘too much’ time or resources on this issue are far smaller than the risks of spending too little and letting lower skills and wider inequalities take root for generations to come.”
The IFS estimates that such a substantial loss of learning is likely to be followed by lower skills and qualifications for children at school during the pandemic, resulting in permanently lower incomes during their careers.
According to the IFS, over 50 to 60 years the combined earnings loss would amount to £350bn, including a £100bn loss of government tax revenue.
Even if “by some miracle”, schools, teachers, children and parents were able to mitigate three-quarters of that effect, the loss of earnings would still total £90bn.
Kate Green, Labour’s shadow education secretary, said: “This report shows just how costly the prime minister’s failure to get a grip on this crisis could be for our children and our economy.
“We cannot wait until this pandemic is over to start tackling the impact on children’s education. Ministers must urgently ensure every child has the equipment needed to learn from home now and set out how it intends to address this catastrophic impact on children and the country long term.”
A government spokesperson said: “The prime minister was clear last week that extended schools closures have had a huge impact on pupils learning, which will take more than a year to make up.
“The government will work with parents, teachers and schools
In England the government’s plan includes £350m for a national tutoring programme aimed at disadvantaged children, unveiled by Boris Johnson last year.
Simon Burgess, an economics professor at the University of Bristol, said: “This briefing paper supports the case that I have been making for months that a huge effort is needed to rebuild the lost skills of today’s young people. I think a ten-fold expansion of the national tutoring programme is the best bet but other options should surely be considered.”
Burgess and his colleagues last year calculated that “from the mid-2030s and for the following 50 years, about a quarter of the labour force will have lower skills, implying a 50-year period of lower growth” for the UK, along with a widening of inequality.
The calculations come after the National Foundation for Education Research last week published the first credible evidence of learning loss in spring last year, with pupils in England aged six and seven losing the equivalent of two months of progress in reading and maths by autumn 2020.
Jonathan Portes, professor of economics and public policy at King’s College London, said: “Any plausible reading of the evidence suggests that the long-term costs are likely to be very large indeed, and that it follows that spending a lot of money and policy effort to reduce or mitigate them is likely to be very good value for money.”
James Turner, chief executive of the Sutton Trust, which promotes social mobility through education, said: “The IFS is absolutely right to call for substantially more education funding to address the major issues coming out of this crisis. But it is absolutely crucial that this is targeted towards disadvantaged pupils who have been the worst hit by the pandemic.”
source: Richard Adams
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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