The most tragic impact of everything is that there will be a generation of adults in 15-20 years with no education, no employable skills and a myriad of MH problems (essentially what contributed to the school refusal in first place). The NHS is already on its knees and the COL shooting up. The disparity between rich and poor will keep widening and possibly create a dystopian society where a small percentage live in luxury enjoying private healthcare and private schools, and the rest in squalor & debt with virtually no chances of a normal life.
Whereas school refusal on an individual level is easily justified and understandable, the macro effect is going to be horrendous. People currently talk about gender privilege, race privilege but in a few decades it will be intellectual privilege. Kids who never went to school will never manage to catch up on literacy levels and social skills compared to ones that did, and be denied really basic opportunities. Once their parents are no longer in the picture, they will have to rely on themselves to sort out social care, UC/PIP and deal with an already broken health system. The politicians and law maker will be part of the educated elite and obviously rig the system against the poorest who lack resources on (financial, intellectual, emotional) every level to fight back.
The UK is literally reverting into a third world country where a substantial proportion of the population are illiterate or lack basic skills that make them employable. Lawlessness and crime will keep on rising as that's the only option for people to keep themselves alive. Educated people with resources to do so will emigrate to countries with better quality of life for themselves and their children.
MN is quite gender critical and there's a current thread on how people would react if their child came out as trans. The answers were all very much against the idea of supporting it and making it clear where the boundary is. This is an unpopular opinion but school refusal should be given similar boundaries. Unless it's an extreme or arguably life or death situation, getting an education needs to be non-negotiable.
The strange thing is that people are perfectly willing to drop their 2 year olds off at nursery despite hysterical crying and crystal clear signs they don't want to be there. Some children take weeks or months to settle but the general sentiment is that they will adapt. However it becomes much easier for kids to skip school when they're older, despite the long term effects being catastrophic.