SI - ST4 Gov Responses to Inequality Flashcards
intro
Poverty and poor health are two of the biggest inequalities in the UK. To reduce these, the government (gov.) have introduced measures such as Universal Credit, the National Living Wage (NLW), and Minimum Unit Pricing (MUP). However, each of them is not without their critiques. Ultimately, this response will argue that the government response that has been most successful at reducing inequalities is Universal Credit
para 1 - KU
One government response to inequality is Universal Credit. This is a benefit designed to give support to low income citizens. The amount someone gets is based on factors such as income, age, disability, if they have children, etc. It is given once a month (similar to a salary) and the individualist response is that if the amount provided is low enough, people will be encouraged to get a job and earn their own way out of poverty
para 1 - example
For example, if a person makes under £6,000 they receive a full UC payment, whilst those who earn £6,000-£16,000 receive a reduced UC payment - those who make over £16,000 are not entitled to UC.
para 1 - A
This shows that the government have been effective in reducing inequality because since the introduction of UC (until the exceptional circumstances of the pandemic) unemployment was historically low and employment was historically highU. This implies that individualistic policies, like UC, are successful in encouraging people into work and that poverty would be reduced if unemployment was tackled.
para 1 - not enough KU
However, others would argue that Universal Credit doesn’t do enough. This is because, since the introduction of Universal Credit, poverty in the UK still remains high. Whilst the policy might have encouraged people to work, the problems with low pay mean that employment alone isn’t enough to end poverty A. The JFR has found that the likelihood of being in poverty whilst receiving benefits such as Universal Credit has increased over time.
para 1 - not enough example
For example, over half of individuals in families recipient of Universal Credit - and the legacy benefits it’s replacing - are in poverty
para 1 - E
Overall, the introduction of Universal Credit has been the most effective gov. response in reducing inequality in the UK as it is more receptive to changes in income, meaning that it will support people who have seen a decrease in earnings and helps people that are trying to get back into the workplace by providing them with the financial support to do so.
para 2 - KU
Another gov. response to inequality is the National Living Wage. This is a gov. policy that guarantees citizens a minimum hourly wage in law, but is paid for by the employer. The idea behind this is that being in work should be enough to avoid being in poverty. It puts the responsibility onto citizens to earn the income they need to look after themselves.
para 2 - example
For example, the Living Wage Foundation found that in 2021, those who had benefited from the National Living Wage were now £2,700 better off a year than they would have been if they had stayed on the National Minimum Wage (NMW).
para 2 - A
This shows that the National Living Wage is effective because it has improved on the NMW since workers have been earning more through NLW than they would have with NMW, meaning that they might be able to provide for both themselves and their families. It also may mean that workers are more motivated to do their work as they know that they are earning a sufficient wage.
para 2 - not enough KU
However, others would argue that the NLW is not enough. This is because the gov. has introduced a living wage that is below the amount calculated as the “Real Living Wage” (the amount someone needs to not live in poverty) and found that those on the Real Living Wage would actually be around £3,800 better off per year.U The NLW has also been argued to be discriminatory since it pays younger people less for the same work. Also, poverty rates in the UK haven’t changed much since the introduction of NLW.
para 2 - not enough example
For example, NLM/NLW policies have been around for over 20 years, but the JFR has highlighted that the UK poverty rate of around 22% has changed little in the last 15 years, suggesting these policies aren’t effective enough.
para 2 - E
Overall, the NLW has been limited in reducing inequality in the UK as, despite NLW, many jobs are still low paid, meaning that the people working these lower paid jobs likely aren’t making enough to afford basic need, are likely not making much on top of their job and may feel that there is no point in working since they are still struggling to survive whilst being employed. Whereas, Universal Credit gives people that are lower paid extra support by providing them with more money on top of their income to afford the essentials needed to survive, making it a better gov. response than the NLW.
para 3 - KU
Another gov. response to inequality is Minimum Unit Pricing. This is a law created by the Scottish gov. to try and reduce overall alcohol consumption and availability in Scotland. The policy sets a minimum price for every unit of alcohol (this was set at 50p per unit) The objective of this policy is to put off shoppers from buying higher strength alcohol, and is particularly aimed at lower income people who can have a much stronger (and negative) relationship with alcohol
para 3 - example
For example, the first reports into MUP found that the amount of alcohol sold in Scotland declined by almost 4%.
para 3 - A
This shows that the gov. have been effective in reducing inequality in the UK as increasing the price of alcohol may stop people from buying it in the first place which could reduce the number of alcohol related deaths, hospital admissions and crimes which subsequently decreases the amount of money being spent on these issues by the police and healthcare services.A Increasing the price could also reduce the amount of people that over consume alcohol.
para 3 - too new to know KU
However, the reality is that the policy is too new to really know if it will have a long term impact. This is because the harms of alcohol come from long term abuse of it, meaning that it will take a long while to see the impact of MUP on health outcomes.A Also, one of the first studies by the Scottish gov. into the effectiveness of MUP found that for young people under 18, this new policy has had little difference on their drinking and that a lot of them mostly consumed alcohol that was more expensive than the minimum set out by the MUP policy. U Along with this, alcohol deaths in Scotland have remained high even after the introduction of MUP.
para 3 - too new to know example
For example, National Records Scotland (NRS) show 1,277 people died from conditions caused by alcohol in 2023, one death more than the previous year (which was the highest number since 2008)
para 3 - E
Overall, MUP has been limited in reducing inequality in the UK as MUP may have encouraged drinkers to cut back on necessities (such as food, heating, clothing) in order to pay for alcohol, rather than stopping them from buying altogether, which can lead to their health deteriorating vastly. Whilst targeted at lower income individuals, MUP affects everyone and seems to be doing more harm than good to those who it is targeted towards as poorer people will set money aside to afford alcohol and richer people are still able to afford higher priced alcohol. Whereas, Universal Credit is designed to help the worst off in society, by giving those who have less more, and those who have more less.
conclusion
As set out above, the National Living Wage and Minimum Unit Pricing have been effective gov. responses to reducing inequality in the UK. NLW has been effective as it has made it so that workers are earning more money than they would have under NMW which has made it easier for them to afford basic necessities, as well as improving their motivation to work. MUP has been effective as the less alcohol bought, the less alcohol related deaths, crimes, and hospital admissions which then decreases the amount of money being spent on alcohol related problems by police and healthcare services. However, these policies still have a long way to go. Arguably, Universal Credit may be regarded as one of the better responses to inequality as it gives people more money on top of their earnings and is also more receptive to changes in income, helping those trying to get back in to work and supporting those whose income has decreased.
