Th4.2: Relative Poverty Flashcards
What is relative poverty about?
about people’s income compared to others in their area
Someone is said to be in relative poverty if…
their income falls below an average income threshold for the economy - they are at the bottom end of the income scale
In Britain, what is relative poverty classed as?
those with an income less than 60% of median household income (£27,300 in 2017) after deducting household costs
What is the poverty line?
the minimum level of income deemed necessary to achieve an adequate standard of living in a given country
Who does the poverty trap affect?
people on low incomes, when the tax and benefits system creates a disincentive to look for work or work longer hours
Why don’t low income workers want to work longer hours?
individuals may find they come to lose income due to income tax and national insurance contributions, as well as losing some income-related state benefits
