Poverty Flashcards
(4 cards)
Relative Poverty
This is when income is a certain percentage less than the average income. For example, in the UK relative poverty is defined as income 50% less than average incomes. Therefore a rise in economic growth and average incomes will cause a change in what constitutes relative poverty.
In 1920, relative poverty may have been an income of less than £800 a year
In 2017, relative poverty may be income of less than £12,000 a year
Absolute Poverty
This is an income below a certain level necessary to maintain a minimum standard of living. (e.g. enough money to buy the basic necessities of food, shelter and heat.
Therefore, economic growth should reduce absolute poverty, so long as the poorest can gain some increase in living standards from the nation’s growth
Government spending on benefits to reduce poverty
Spending on benefits helps those with no income
Increase in disposable income
allows spending on basic necessitites
reduction in absolute poverty
also Government provides pensions
reduction in old age poverty
provides elderly with disposable income to afford basic needs
App:23/24 Gov spending on benefits 265.5bn
evaluation on spending on benefits to reduce poverty
Uk is known for being a “nanny state”
provide too much help and supportt to pop
overreliance in gov if beneifts payment s higher to living wage
individuals stay in poverty
individuals gain no skills
mrp stays low
no access to high paying jobs
leading to paying job
poverty trap