Several Factors That Cause Income and Wealth Inequality in the UK Flashcards
(12 cards)
What is the ‘motherhood penalty’?
Women’s income drops after having children, while men’s often increases.
How does motherhood affect pensions?
Time off work disrupts National Insurance contributions, limiting pension access.
What is the current UK gender pay gap?
8.3% for full-time work; 17.8% for part-time work.
Why does inheritance lead to inequality?
Wealthy families pass on large estates, while others receive little or nothing.
How many estates pay inheritance tax?
Fewer than 25,000 annually – less than 5% of all deaths.
Why is increasing inheritance tax controversial?
It may discourage saving and reduce government revenue due to the Laffer Curve effect.
What is austerity in economic terms?
Government policy of cutting public spending, especially benefits.
How many families were under the benefit cap by 2020?
154,000 families.
What percent of families with a child under 5 live in poverty?
34%
What is casualisation in work?
Jobs with no guaranteed hours or benefits, like gig work or zero-hour contracts.
How many people worked in the gig economy in 2022?
Around 7.25 million.
How does casual work impact wealth building?
Casual workers struggle to access pensions or mortgages, reinforcing inequality.
