Poverty and inequality

Question 1

Gini coefficient UK

Answer 1

0.35

Question 2

% families in relative poverty

Answer 2

22%

Question 3

Gender pay gap %

Answer 3

27% in 1997, 14.4% in 2024

Question 4

Absolute poverty def

Answer 4

cannot afford basic needs, $2.15 per day

Question 5

Relative poverty def

Answer 5

UK official measure of relative poverty is household income below 60% of median income

Question 6

Mean + median income in uk

Answer 6

Income per person or per household (Mean) - £39,328
Average household income0 £32,349

Question 7

Working poverty def

Answer 7

situation where families with at least one person in paid work have a household income that keeps them below the relative poverty line of income between 60% of median income. 62% of children and working age adults where in working age poverty in 2022

Question 8

Reasons for increase in working age poverty:

Answer 8

• Wage stagnation: stagnant falling real wages and declining relative wages for millions of people in low paid jobs. In part to do with the fall in trade union density.
• Impact of labour market changes: The rise of 0 hour contracts, part time, step increase in the cost of childcare and housing rents. Allied to real terms declines in the value of top up welfare benefits such as the Universal Credit.

Question 9

Short term policies to reduce inequality

Answer 9

Min wage, cap on bankers bonuses

Question 10

Long term policies-

Answer 10

Education and housing reforms- investment to expand access to high quality early education

Question 11

Diagrams to use:

Answer 11

Lorenz curve, min wage, rent controls, child care subsidies