Causes of Poverty in the UK

Causes of Poverty Causes of Poverty in the UKin the UK

What is Poverty?What is Poverty? ““Individuals, families and groups in the Individuals, families and groups in the

population can be said to be in poverty population can be said to be in poverty when they lack the resources to have when they lack the resources to have living conditions and amenities which living conditions and amenities which are customary in our societyare customary in our society.”.”

Who lives in Poverty?Who lives in Poverty? Poverty is greatest amongst families with children.Poverty is greatest amongst families with children.

Single parent families are twice as likely to be Single parent families are twice as likely to be poverty as families with two adults.poverty as families with two adults.

On average women have lower incomes than men. On average women have lower incomes than men. Women who are single parents or have given up Women who are single parents or have given up careers to act as carers are more likely to be in careers to act as carers are more likely to be in poverty. poverty.

Elderly people are now in a better position because Elderly people are now in a better position because many of them are in houses which are worth a lot of many of them are in houses which are worth a lot of money. Although many elderly do live in poverty.money. Although many elderly do live in poverty.

The causes of poverty

UnemploymentGovernment Policy

Gender

Race

Age

Low paid Employment

Living below the poverty lineLiving below the poverty line

defined as 60% of median incomedefined as 60% of median income In Scotland 2007/08 there were In Scotland 2007/08 there were

860,000 individuals (17% of the pop) 860,000 individuals (17% of the pop) living in povertyliving in poverty

UnemploymentUnemployment

Over half of workless adults of Over half of workless adults of working age live in povertyworking age live in poverty

In December 2010 UK unemployment In December 2010 UK unemployment rate is 7.9%rate is 7.9%

In 2006 it was 5.3%In 2006 it was 5.3%

What causes unemploymentWhat causes unemployment

Structural Changes Structural Changes ..

Technological Technological changes.changes.

Foreign Foreign Competition.Competition.

Education.Education.

Lifestyle.Lifestyle.

Government Policy.Government Policy.

Low IncomeLow Income

Having a job lowers the risk of poverty but Having a job lowers the risk of poverty but does not guarantee a good standard of livingdoes not guarantee a good standard of living

40% of adults in poverty live in a house 40% of adults in poverty live in a house where at least one person workswhere at least one person works

Av. wage in Britain is £200 p/wk Av. wage in Britain is £200 p/wk top 10% in Britain can earn around £800 top 10% in Britain can earn around £800

p/wkp/wk Bottom 10% earn £150 p/wkBottom 10% earn £150 p/wk Factors that influence low paid Factors that influence low paid

unemployment- Geography, Gender, Sector unemployment- Geography, Gender, Sector of the Economy.of the Economy.

RaceRace

8% of the UK population is from an 8% of the UK population is from an ethnic minority group.ethnic minority group.

52% of Pakistani/ Bangladeshi are 52% of Pakistani/ Bangladeshi are likely to live in poverty.likely to live in poverty.

Why is this?Why is this?

Cultural ReasonsCultural Reasons- Pakistani - Pakistani women are more likely to stay at women are more likely to stay at home and look after their families.home and look after their families.– Only one incomeOnly one income

Larger families than average Larger families than average coupled with lower incomescoupled with lower incomes

Education-Education- Pakistanis tend to Pakistanis tend to have lower qualifications than have lower qualifications than averageaverage– greatly impacts on the types of jobs greatly impacts on the types of jobs

that they get.that they get.

HoweverHowever Not all ethnic minorities Not all ethnic minorities have such a high risk - Indian and have such a high risk - Indian and Chinese educational attainment is Chinese educational attainment is much higher than whites due to much higher than whites due to the value placed on education.the value placed on education.

Discrimination- Discrimination- Many from Ethnic Many from Ethnic minorities are offered less minorities are offered less interviews which means they have interviews which means they have a lower chance of getting a job.a lower chance of getting a job.

Fluency in the English language Fluency in the English language can be problem for recent can be problem for recent immigrants when seeking work.immigrants when seeking work.

Government PolicyGovernment Policy Benefits Policy- Benefits are set a low level Benefits Policy- Benefits are set a low level

to make more people want to work. to make more people want to work. Many peoples benefits are means rested Many peoples benefits are means rested

which means that many go with out. which means that many go with out. Relative to earnings, out-of-work benefits Relative to earnings, out-of-work benefits

for working-age adults without children are for working-age adults without children are now worth 20% less than in 1997. now worth 20% less than in 1997.

The NMW has raised income levels. The NMW has raised income levels. Currently £5.73 per hour. Currently £5.73 per hour.

BUT for a single person to reach minimum BUT for a single person to reach minimum income standard of £13,400, would need income standard of £13,400, would need to go up to £6.88to go up to £6.88

Low IncomeLow Income

Having a job lowers the risk of poverty but Having a job lowers the risk of poverty but does not guarantee a good standard of livingdoes not guarantee a good standard of living

40% of adults in poverty live in a house 40% of adults in poverty live in a house where at least one person workswhere at least one person works

Av. wage in Britain is £200 p/wk Av. wage in Britain is £200 p/wk top 10% in Britain can earn around £800 top 10% in Britain can earn around £800

p/wkp/wk Bottom 10% earn £150 p/wkBottom 10% earn £150 p/wk Factors that influence low paid Factors that influence low paid

unemployment- Geography, Gender, Sector unemployment- Geography, Gender, Sector of the Economy.of the Economy.

GenderGender

Women are more likely to be Women are more likely to be employed in low paid jobsemployed in low paid jobs

WHY?WHY? Women tend to be carers for Women tend to be carers for

young, sick and elderly family young, sick and elderly family members and this greatly members and this greatly effect them developing effect them developing careers.careers.

Lots of women in part time Lots of women in part time work- Sales, cleaning etc.work- Sales, cleaning etc.

GenderGender

In 2003/04 the average female wage In 2003/04 the average female wage was just 53% that of a malewas just 53% that of a male

on average Women in FT jobs are on average Women in FT jobs are paid 17% less than men.paid 17% less than men.

42% of women work PT42% of women work PT Only 9% of menOnly 9% of men

The Glass CeilingThe Glass Ceiling

•an invisible barrier that prevents women reaching the top jobs.

•Women make up: 3% of executive directors

•10% of company directors

•25% of department heads

•Why?

Family StructureFamily Structure

Single parent families and families Single parent families and families with large numbers of children more with large numbers of children more at risk of povertyat risk of poverty

Why?Why?

57% of female lone parents do not 57% of female lone parents do not workwork

42% of children living in poverty are 42% of children living in poverty are in single parent householdsin single parent households

GeographyGeography Poverty is highest in N England, Scotland and Poverty is highest in N England, Scotland and

WalesWales Why? Differences in unemployment levels, Why? Differences in unemployment levels,

home ownership, average incomeshome ownership, average incomes However, poverty and wealth exist side by side However, poverty and wealth exist side by side

in many areas – Drumchaple and Bearsdenin many areas – Drumchaple and Bearsden Living in a deprived area can affect your life Living in a deprived area can affect your life

chanceschances Scotland has the areas with highest proportion Scotland has the areas with highest proportion

of low paid workersof low paid workers Borders, Moray, West Borders, Moray, West Dunbartonshire, Dumfries.Dunbartonshire, Dumfries.

EducationEducation

The lower a person's qualifications, The lower a person's qualifications, the higher their risks of being out of, the higher their risks of being out of, but wanting, work or being in work but wanting, work or being in work but low paid. but low paid.

those with no qualifications are twice those with no qualifications are twice as likely to be lacking but wanting as likely to be lacking but wanting paid work paid work

And if working, they are two-and-a-And if working, they are two-and-a-half times as likely to be low paid. half times as likely to be low paid.

AgeAge

There are two main groups who are There are two main groups who are vulnerable to poverty- vulnerable to poverty- Children and Children and the Elderlythe Elderly