Wealth and Poverty in the UK

How is Wealth measured? Wealth is made up of the assets that are owned by people living in a country: Housing Housing State pensions State pensions Private pensions Private pensions Savings Savings

What counts as income? Employment Employment Pensions Pensions Benefits Benefits Self-employed income Self-employed income Rent, dividends, interest Rent, dividends, interest Others Others

How wealthy is the UK? In 2010, UK’s GDP per head was approx £20,400 In 2010, UK’s GDP per head was approx £20,400 UK is the 19 th richest in the OECD group of countries (there are 29 in the group) UK is the 19 th richest in the OECD group of countries (there are 29 in the group) UK is the 30 th richest country in the world out of 192 UK is the 30 th richest country in the world out of 192

Absolute and relative Poverty Absolute Poverty is when people are deprived of two or more of the seven basic needs: clean water, sanitation, shelter, education, information, food and health. Absolute Poverty is when people are deprived of two or more of the seven basic needs: clean water, sanitation, shelter, education, information, food and health. Relative Poverty is when people do not get access to products and services that society considers to be necessary for basic living. This type of poverty varies significantly as society changes. Relative Poverty is when people do not get access to products and services that society considers to be necessary for basic living. This type of poverty varies significantly as society changes.

How do we measure poverty in the UK? 1. Households Below Average Income (HBAI). Those with less than 60% of median income 2. Persons on Income Support 3. Poverty and Social Exclusion Survey (people who lacked more than 2 of the items considered necessary for modern living – 26% of the population were found to be ‘poor’

Poverty and Social Exclusion in the UK In 1979, 5 million were classed as poor In 1979, 5 million were classed as poor Poverty grew significantly during the 1980s Poverty grew significantly during the 1980s Between 1979 and the mid 1990s, the income of the richest 10% went up by 65%, but… Between 1979 and the mid 1990s, the income of the richest 10% went up by 65%, but… The income of the poorest 10% went down by 13% The income of the poorest 10% went down by 13% Peaked in the 1990s at 14 million Peaked in the 1990s at 14 million Fell to 12.4 million in 2003 Fell to 12.4 million in 2003 It has remained persistently high since It has remained persistently high since 1 in 4 people live in poverty 1 in 4 people live in poverty 1 in 3 children live in poverty 1 in 3 children live in poverty

Recent Trends fewer poor in low-income households with children fewer poor in low-income households with children fewer poor in low-income households with pensioners fewer poor in low-income households with pensioners more poor among working-age adults without dependent children more poor among working-age adults without dependent children Tax and benefits changes have brought about these changes. Tax and benefits changes have brought about these changes.