Poverty costs every person in the UK £1,200 on average and a total of £78bn per year, according to a new report on Monday.
The analysis by the Joseph Rowntree Foundation looked at the "devastating long term impact poverty" and found the cost of tackling it wa equivalent to four per cent of GDP. It is the first detailed research on the cost of poverty to the public and found £1 in every £5 was spent on dealing with the effects on people's lives.
The NHS bore the brunt of the cost, spending £29bn on health conditions associated with poverty, it said. The report also found £10bn was spent on school initiatives such as free school meals for poorer pupils and £9bn on police and criminal justice systems dealing with higher crime levels in deprived areas.
David McAuley, chief executive of The Trussell Trust, a Christian-based food bank charity, said the report showed "tackling poverty and inequality is not only a matter of offering compassion and hope to those in difficulty, but an economic imperative for the nation".
He added: "We must all step up to the challenge.
"Last year foodbank use reached a record high and these same community projects are now doing more than ever before to run other services, such as debt and money advice, cooking skills and school holiday clubs, seeking to prevent people falling into a crisis where they are unable to eat.
"But much more must be done and today we renew calls for Government, business and charity to come together in a joined up approach to ending poverty and hunger in the UK and ensure the social safety net works for everyone."
Professor Donald Hirsch from Loughborough University, who co-authored the report, said it was difficult to estimate the full cost "not least its full scarring effect on those who experience it".
He added: "The experience of poverty, for example, makes it more likely that you'll suffer ill health or that you'll grow up with poor employment prospects and rely more on the state for your income.
"The very large amounts we spend on the NHS and on benefits means that making a section of the population more likely to need them is extremely costly to the Treasury."
