Poverty in the UK

Lesson Objectives I will get the opportunity to develop my understanding of the difference between two measures of poverty: absolute and relative poverty. I will get the opportunity to explain why relative poverty rates in the UK and Scotland are changing. I will be able to describe some of the groups that are more vulnerable to poverty.

What is poverty? There are two main approaches to defining poverty; Absolute poverty Relative poverty. Absolute poverty This definition describes poverty as not having the essentials for life i.e. food, clothes and shelter. Relative Poverty This definition describes poverty as not having access to what society thinks citizens should have i.e. decent quality housing, certain household goods (fridge, beds, telephone, etc.), a holiday or toys and books for children. However the view of relative poverty changes over time. For example 25 years ago the lack of a TV or a yearly holiday would not have been seen as being poor.

Task – Poverty means you don’t have money for ……… Working in pairs produce a list of items that you think if people don’t have in the UK means that they are living in poverty. Consider as many different things as possible; - how much money for a family of 4? - daily costs – how many meals, hot or cold food? - weekly costs – heating? - hobbies – gym, football? - special events etc. – birthday, Christmas? - other – school trips, uniforms?

Minimum Living Standards UK 2013 Joseph Rowntree Foundation For a family of 4 the following is required to have a “socially acceptable” standard of living (i.e. balanced diet, heat home, run a car); Income £36,800. Weekly spending to include the following; - Childcare £ Food (meat/veg/snacks) £18.08/£11.27/£ Social activities £30 - Car £ Holiday £18.52

Child Poverty Act 2010 This law was passed in 2010 by the previous Labour Government. Material measures of poverty include; A family holiday for at least one week a year Enough bedrooms for every child of 10 or over of a different sex to have their own bedroom Leisure equipment such as sports equipment Celebrations on special occasions Swimming at least once a month A hobby or leisure activity Friends around for tea or a snack once a fortnight Toddler group/nursery/playgroup at least once a week Go on school trips Outdoor space or facilities nearby to play safely.

Other Methods of Measuring Poverty There is no official ‘poverty line’ (minimum standard) in the UK. However, the two commonly used criteria to identify those in poverty are: Households Below Average Income (HBAI) -Used by the Department of Work and Pensions (DWP), this defines those in poverty as anyone living on or below 60% of average income. In 2013, average family income in the UK stood at £27k per annum. Any family below about £16.2k would be considered poor. Universal Credit - Universal Credit is paid to those whose are on a low income or out of work. The maximum payment for any household will be £26k. It will combine a number of benefits e.g. Income Support. This reform will be fully implemented by 2017.

Other Groups More Vulnerable to Poverty Working in pairs identify at least three other groups that are more vulnerable to poverty – try to include a reason why as well.

Other Groups More Vulnerable to Poverty 1 Women Lower average pay – 85% of males for full time. Caring responsibilities of children and elderly. Lone parents 92% are headed by women. Cost of raising children. Poorer employment prospects. Young people - NEET Around 1m are not in education, employment or training. Often they disappear from the system.

Other Groups More Vulnerable to Poverty 2 Families with Children Children are expensive – on average £248k from Women more likely to be unemployed/hours cut. Elderly Pensioners depending on state pension or small occupational pension e.g. 1.2m depend on state pension. Ethnic Minorities Poorer employment prospects. Lower paid jobs. Higher unemployment rate e.g. 7% for whites compared to 18% for blacks.

Possible Essay Questions Poverty is the most important factor that affects health. Discuss Critically examine the success of recent government policies to reduce poverty? To what extent do social and economic inequalities continue to exist in the UK?

Conclusion There are two main definitions of poverty – absolute and relative poverty. The idea of relative poverty is contested but it does change over time. Other measures used include HBAI and Universal Credit claimants. There are a number of groups more vulnerable to poverty including; the elderly, ethnic minorities and women.