Wealth and income Learning objective: All to be able to outline the distribution of wealth and income in Britain. Wealth High incomeLow income How are wealth and income distributed in the UK?

Connector Which social class is this a description of? This class is becoming better off, it has similar values, behaviours, lifestyles, expectations, consumer goods to the traditional middle class. This class mainly live in the south of England, own their homes, work in new industries like technology. This class are the clerical workers in routine, less skilled jobs such as telesales, call centres, etc. This class is at the bottom of the class structure, has very low life chances, unemployed, young single parents, homeless, many are disadvantaged ethnic minorities. This class is made up of self-made rich, pop stars, lottery winners, etc. Lower middle class Upper middle class Upper working class Underclass ‘Upper’ class AKA ‘pop aristocracy’

Task 1 What do these people have in common?

Task 1 continued... They are the top 5 richest people living in Britain. How many of them do you think are British-born? Do you think their wealth is inherited or earned? Mr Bertarelli - pharmacuticals – earned Mr Usmanov - Russian steel and iron ore magnate – earned Mr Abramovich – Russian oil magnate – earned Duke of Westminster – property – inherited Indian steel magnate - earned

Distribution of wealth and income Wealth and income are not evenly distributed in the UK. For example, only 10% of the population own nearly ½ of all wealth. Similarly, the top 40% of earners receive 60% of all income. Therefore, there is a huge gap between the ‘haves’ and the ‘have-nots’. 5 Mins

Task 2: Gap fill Wealth Wealth refers to ownership of property such as land, houses, art, jewellery, stocks and shares in companies, etc. Wealth is often inherited; passed from generation to generation. Wealth often also produces more wealth. For example, house prices go up, shares bring in dividends, works of art grow in value, etc. In Britain today, the wealthiest 1% of the population own over 50% of wealth. Wealth affects life chances. For example, those with wealth can choose between NHS and private healthcare, state and independent education. 15 Mins

ownership art inherited generation Wealth 50% life chances private

unevenly aristocracy Old Boys’ law value entertainment super-rich

Distribution of wealth Wealth is distributed unevenly in the UK. Reasons: 1. The aristocracy are still a part of the ‘Old Boys’ Network’ which enables them to keep wealth among themselves through, for example, marriage. 2. The rich can use loopholes in the law to avoid paying tax. 3. Over time, the value of houses, land and art increases so the gap between those who own such property and those who do not widens. 4. Rewards in the new entertainment industry have grown. 5. Globalisation had led the super-rich non-natives to live in the UK, e.g. Abramovich.

distribution council buy sell profit savings passed

Changes to the distribution of wealth In recent years, there has been some distribution of wealth in the UK. In the 1980s, many people living in council housing were enabled to buy the houses they lived in. They now own their own homes, but since then the value of houses has increased and so has their wealth because, if they were to sell their houses they would make a profit on the amount of money they paid for their house. Many people now have savings accounts. The money from these can be passed to their children.

money benefits, taxable £25000 company car

Income Income refers to the amount of money coming into a household through wages, benefits, interest from savings accounts and dividends on shares. Income is taxable, the more you earn, the more tax you pay. Disposable income is the amount of money you actually get after they’ve paid tax. In Britain today, the average income is between £20000 and £25000 per year. However, some people get extras on top of their income such as a company car, bonus pay, etc.

demand status low.

Distribution of income Income is distributed unequally. Occupations do not offer the same levels of income because: 1. Market forces – people with skills which are in high demand earn more 2. High status of some jobs allows them to demand a high wage. 3. Benefits are low.

Task 3 Read the article Why the super-rich love the UK and answer these questions: 1. Who are the super-rich? 2. Why are so many of them living in the UK? 3. What are the benefits of the super-rich living here? 4. What are the problems? 5. How does their wealth affect their life chances? 15 Mins

Exam questions 1. What is the difference between wealth and income? (4 marks) 2. Identify two ways in which having a high income may improve life chances. (4 marks) 10 Mins

Sociology Mock Exam Monday 2 nd March: Unit 1 Thursday 5 th March: Unit 2 Remember to revise

Review Work on your own to consider these questions and write the answers into your book: 1. Is the distribution of wealth and income in the UK fair? 2. Why do you think that? 3. If you think it is unfair, what do you think we should do about it? 5 Mins