There are many factors which lead to inequalities in wealth Flashcards
what is VAT set at ? and what does regressive tax policy mean ?
VAT is set at 20%. regressive tax means that no matter how much you earn you will be paying the same amount. tax burden shifted to the poorest.
what is the Scottish Income Tax set at ? and what does progressive tax policy mean ?
progressive tax means that you pay a proportion of your income. highest earners (£150k pay 46%) and the lowest earners (£14,667 pay 19%)
government taxation policies typically…
combine regressive and progressive taxes which serves to maintain inequalities and does not typically increase them
what is UC and what is the standard MONTHLY payment for a single person over 25 ?
Universal Credit combines a range of benefits for easier administration. the MONTHLY payment for a single person over 25 is £334.91
why is UC good ?
it is a safety net that ensure that everyone can afford the essentials and in theory nobody should be living in poverty
however following the 2008 financial crisis the Government had austerity cuts, what were the cuts ?
benefits was capped at £20k per year (£23k in london) and child benefits was capped at your first two children, affecting 150k families.
why was this choice not surprising (hint : think of who is in Government)
the Conservatives hold very individualist beliefs and this choice aligns with that.
what was the record low unemployment rate ? and what happened with the new industrial age ?
with the fall of the heavy industry there was a spike in service industry jobs and a record low unemployment rate of 4.5% in 2021.
why are these new roles good ? (hint : think about who part time work is good for and why)
they are flexible for women who tend to be the main carers, students and the elderly. thus increasing access to the jobs market
however employment is not evenly spread, where is the worst off in the UK and why ?
the North East of England is the worst off seeing an unemployment rate of 5.7% in 2021 compared to the national average of 4.2%, this is due to the decline of the heavy industry and new roles not being fit for former miners
what percentage of the UK workforce was in zero hours contracts in 2019 ?
as of 2019 3% of the UK workforce was in zero hours contracts and almost 25% of zero hours contracts are in poorly paid food industries.
what are the downsides of ZHC ?
hours aren’t guaranteed causing struggle when managing finances, also a lack of full time benefits such as sick pay casing further stress and anxiety.
