4.2.1 absolute and relative poverty

Question 1

what is absolute poverty?

Answer 1

Absolute poverty is when people are ​unable to afford sufficient necessities to maintain life. The UN defines absolute poverty as ‘a condition characterised by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information.
the world bank describes it as less than $1.90 a day

Question 2

what is relative poverty

Answer 2

In Britain, relative poverty is classed as those with an ​income of less than 60% of median household income (£27,300 in 2017) after deducting household costs. ​One in 5 people in the UK live below the official poverty line, with 14m people in relative poverty​.

Question 3

what are the causes that change the level of poverty

Answer 3

● Poverty is caused by unemployment, a lack of skills, health problems and income dependency.
● Absolute poverty tends to fall as GDP increases​, assuming that the state provides support to those who are unable to benefit from a growing economy.
● The two main causes of growth of relative poverty are if those on ​higher salaries see larger income growth than those on lower salaries or changes in ​government spending and taxation​.

There has been a growth in ​underemployment, zero-hour contracts,
part-time jobs and temporary jobs, all of which mean lower wages for
workers.
o The decline of ​trade unions has left many workers unable to bargain for
higher wages.
o On top of this, ​state benefits have fallen in relative value whilst taxes have
become more ​regressive​.
o Moreover, ​long term and structural unemployment​ has risen.