CSMP24 - Social inequality and the role of government

Question 1

How does progressive taxation reduce inequality?

Answer 1

• Progressive taxation reduces inequality by taxing the highest earners higher percentages of money
• At £50,000 UK workers change to a higher rate of tax and pay 40%

Question 2

How does uneven transport investment reinforce inequality?

Answer 2

• There is huge investment in London’s transport infrastructure (Crossrail, tube) compared to the North
• £280 v £1800 spend per person in favour of London

Question 3

What are the local government doing to combat housing inequality in Cambridge?

Answer 3

• The average house costs about £440,000 in Cambridge, nearly 13 times more than the city’s median annual salary of £34,400.
• As a result, the lowest earners are being priced out of Cambridge and struggle to join the housing ladder, or are having to forgo food to cover rent costs as housing benefit does not cover the cost of rents in Cambridge
• To manage this, 162 affordable homes were constructed as part of the Council’s Affordable Housing Development Programme between April 2014 and March 2017
• Not nearly enough affordable houses being built with nearly 1700 homes built per year

Question 4

What are the local government doing to economic inequality in Cambridge?

Answer 4

• The Council’s Living Wage campaign has succeeded in increasing the number of Cambridge employers accredited by the Living Wage Foundation to 75, including major employers such as Anglia Ruskin University (ARU), ARM Limited and Cambridge Live.
• These 75 employers commit to a minimum wage of £9.90 per hour compared to the national living wage of £8.91 per hour.
• Cambridge Council have paid the rent for Cambridge City Foodbank over a two year period.
• From April 2016 to end of March 2017 Foodbank provided residents in financial crisis with £30,000 in pre-payment meter energy top-ups and 55,000kg of food with a value of £90,000.

Question 5

What are the local government doing to economic inequality in Cambridge? PT2

Answer 5

• 3020 free lunches were provided during the school holidays between Easter, April 2016 to half Term in February 2017 at various locations around the city, including City Council and Church venues in Abbey, Arbury, Cherry Hinton, East Chesterton, Kings Hedges, Romsey, and Trumpington wards

Question 6

How does the Pupil premium reduce inequality?

Answer 6

• The pupil premium is a sum of money given to schools each year by the Government to improve the attainment of disadvantaged children
• Children who have qualified for free school meals at any point in the past six years. The school receives £1300 for each of these children.

Question 7

How does Rising university costs reinforce inequality?

Answer 7

• Interest is charged while students are still at university at the level of inflation plus % which means student’s loans increase even before they have graduated
• In England, the amount owed in 2017 had reached £76bn, compared with about £34bn in 2011.