Poverty Flashcards
(6 cards)
What is Absolute Poverty?
When income is too low to ensure basic needs (food, shelter,
clothing, access to clean water, sanitation facilities, education &
information) are met.
What is Relative Poverty?
Living below a certain threshold in a particular threshold,
e.g. in UK, a household on less than 60% of median income is relatively
poor; or not being able to afford what is normal in the society you live in
Causes of Poverty?
• Unemployment/worklessness/homelessness
• Working poor/low paid work/underemployment
• Single parenthood/family structure
• Lack of education/skills
• Old age/longevity/pensioner poverty
• Cuts to welfare benefits
• Poorer quality public services/poor health
• Rising income and/or wealth inequality
• Discrimination
• Lack of opportunity/lack of access to finance/credit
Poverty is often multi-causal – it is a combination of several issues that
cause poverty for households and the people in them
What are the 4 types of poverty?
Child Poverty: children living in households with an income below 60% of the median income
Persistent poverty: Persistent poverty is defined as experiencing relative low income both in the current year and at least two out of the three preceding years
Pensioner poverty: poverty for those after retirement and dependent on a pension income experience financial hardship
Fuel poverty: A household that spends at least 10 percent on its fuel costs
What are the effects of Poverty?
Health disparities: poverty often restricts access to healthcare; poor living conditions, inadequate
nutrition, and lack of preventive healthcare contribute to higher rates of illnesses
Limited education opportunities: poverty can hinder access to quality education, leading to lower educational attainment and limited skills development
Unemployment and underemployment: a challenge in finding stable and well-paying
employment opportunities; jobs may not fully use skills or have limited hours
Housing insecurity & homelessness: poverty can lead to substandard living conditions, including!overcrowded housing, lack of basic amenities, and exposure to environmental hazards.
Food insecurity: lack of access to nutritious food leading to malnutrition and related health issues; may need to use food banks
Social exclusion: individuals living in poverty may face social stigma and discrimination, leading to feelings of isolation from mainstream society restricting participation in social and cultural
activities, limiting opportunities for personal development and social integration.
Cycle of poverty and limited upward mobility: poverty can become a cycle, as children born into impoverished families may face similar challenges, perpetuating the cycle across generations.
Increased crime rates: involvement in criminal activities as individuals may resort to illegal activities due to economic desperation.
What are some Anti-Poverty policies?
• Topping up low pay with tax credits - working WTC and child CTC
• Increasing the NMW
• Increases in real value of child benefit CHB and other benefits
• Minimum income guarantees for pensioners (& triple lock)
• Training programmes to get youths & long-term unemployed back to work
• Expansion of childcare schemes for low-income parents who want to
return to work.
• Support for key workers to get a mortgage and move on to the housing ladder
• Charity work/Food banks
• Redistribute income/wealth
Impact on efficiency and equity can vary depending on policy used; as
poverty is multi-causal, a range of policies is likely to be more effective
