Paragraph 2 Flashcards
Intro
Another lifestyle choice that can be blamed for income and wealth inequalities in Scotland is Universal Credit.
Explain 1
Universal Credit is a government scheme made to replace 6 earlier welfare benefits and to encourage the unemployed to start working again. However, it has been criticised for its long waits, and specific criteria for benefits.
Example 1
For example, 6 out of 10 low-income households are not able to afford unexpected expenses, and only around 50% rely on credit to pay for some of these expenses.
Analysis 1
This shows that because around half of those in poverty cannot claim Universal Credit as the requirements are so specific, they are stuck in a cycle of poverty, causing Wealth Inequalities.
Rebuttal
However, many argue that poverty rates depending on employment sector could be more significant than universal credit in causing income and wealth inequalities in Scotland.
Explain 2
This is because there has been a rise in zero-hour contracts, the National Minimum wage, and low-paid employment has increased the “working poor.”
Example 2
For example, the National Minimum Wage is really £12/hour. However, the Government have set it at £11.44/hour.
Analysis 2
This means those working just to survive are being unfairly treated by the Government. Despite working difficult, low-paid jobs, it is still not enough to keep themselves alive.
Evaluation
Overall, despite employment sectors making it difficult for people to stay above the poverty line, universal credit is more significant. This is because people working these low-paid jobs should be able to get some sort of benefit from the government to help them survive. However, due to the complicated criteria needed to get this benefit, people are unable to claim it. Therefore, having a larger effect on income and wealth inequalities in Scotland.
