Wealth Inequality Essay

Question 1

Intro

Answer 1

Peter Townsend defined poverty as lacking the resources for basic needs such as social participation which others take for granted. It will be argued there are many causes of income & wealth inequality. This essay will discuss education, low pay & unemployment

Question 2

Unemployment - Point

Answer 2

Many would argue that unemployment is a key contributing factor to poverty

Question 3

Unemployment - Explain

Answer 3

To be unemployed means to not be working & therefore not earning money for basics you need to survive

It also means you may not be able to take advantage of opportunities to gain skills required to gain employment

Question 4

Unemployment - Example

Answer 4

A JFR report shows households where no one is in work have a poverty rate of over 50% compared to households where someone works full time having a poverty rate of 10%

Question 5

Unemployment- Analysis

Answer 5

The higher poverty rate for these households may be because there is no one working increasing their risk of poverty

Question 6

Unemployment - Rebuttal

Answer 6

If you’re unemployed you are more likely to be dependent on benefits which will make you more vulnerable to poverty

Question 7

Unemployment - Rebuttal Explain

Answer 7

In the UK benefits are generally set as the minimum someone needs to survive & the UK has some of the least generous benefits in Europe

The amount of support someone gets & who gets them is set by the government

Question 8

Unemployment - Rebuttal Example

Answer 8

According to JFR in 2022 this is one of the reasons why those out of work & on benefits such as Universal Credit have a poverty rate of 54% in contrast to the overall working age poverty rate of 20% for the UK

Question 9

Unemployment - Rebuttal Analysis

Answer 9

When you consider poverty has risen in the last 10 years while benefits have become less supportive, it’s clear that being on benefits puts you at risk of government changes & poverty

Question 10

Unemployment - Conclusion

Answer 10

In conclusion, those who are unemployed and tend to rely on benefits are unable to pay for basic essentials due to how little they receive making it difficult for them to get a job and escape the poverty cycle

Question 11

Low Pay - Point

Answer 11

Low pay is a leading cause of income & wealth inequality

Question 12

Low Pay - Explain

Answer 12

Even people who have a job aren’t always free from poverty

Even in households where adults are in work, they may not be able to afford basic essentials because wages are far too low & are not keeping up with inflation rates

Question 13

Low Pay - Example

Answer 13

Around 68% of working-age adults in poverty live in a household where at least one adult is in work

The living wage set by the government is £9.50 p/h & it’s stated this is what an individual needs to be paid to not be in poverty

Question 14

Low Pay - Analysis

Answer 14

Working poor households is a major issue, younger people & women are more likely to be working on the living wage which increases their risk of being in poverty

Question 15

Low Pay - Rebuttal

Answer 15

However, the living wage that has been set by the government is not high enough & doesn’t meet the recommended rate of pay set by the Living Wage Foundation

Question 16

Low Pay - Rebuttal Explain

Answer 16

The Living Wage Foundation are an independent organisation that recommends pay rates every year depending on the cost of living

Employers pay this to give employees a fair deal which gives them a good reputation

Question 17

Low Pay - Rebuttal Example

Answer 17

The Living Wage Foundation state in 2022 the living wage should be £9.90 p/h & this is expected to rise due to the cost of living crisis

Question 18

Low Pay - Rebuttal Analysis

Answer 18

The government are failing to keep people out of poverty

Question 19

Low Pay - Conclusion

Answer 19

Low pay is a significant cause of income & wealth inequality due to the government living wage being too low meaning too many people who are working are poor

The cost of living crisis is making those working on low wage more susceptible to poverty & the government should increase wages to meet the living wage foundations rate of pay

Question 20

Educational Attainment - Point

Answer 20

The educational attainment of an individual is a good indicator as to the likelihood that someone may be in poverty

Question 21

Educational Attainment - Explain

Answer 21

Those with a higher level of qualifications will have more skills & thus be more employable

It is also likely that they will have skills & knowledge to enter higher paid professions

Question 22

Educational Attainment - Example

Answer 22

The JFR found the poverty rate was lowest for those qualified to a degree level (13%) compared to those with no qualifications who had a poverty rate of 44%

Question 23

Educational Attainment - Analysis

Answer 23

This contrast between level of educational attainment & poverty is quite stark & suggests that it may be a significant cause of poverty

Question 24

Educational Attainment - Rebuttal Point

Answer 24

This makes access to education a key factor to consider but this might be harder for people in some parts of the UK

Question 25

Educational Attainment- Rebuttal Explain

Answer 25

The area of the UK you live in can increase the likelihood of being able to afford to go to university & reduce your risk of poverty

This is because university is free for Scottish students but English students have to pay tuition fees

Question 26

Educational Attainment- Rebuttal Example

Answer 26

According to UCAS English students can pay up to £9,250 a year to go to university in 2022 in contrast to most Scottish students who will not generally have to pay to go to uni

Question 27

Educational Attainment - Rebuttal Analysis

Answer 27

This shows that university fees are restricting those in poverty to go to university

Question 28

Educational Attainment - Conclusion

Answer 28

Considering the poverty rate in Scotland is 3% lower compared to England, the greater barriers to education may explain some of England’s higher poverty rate

Question 29

Overall Conclusion

Answer 29

In conclusion, educational attainment, low pay & unemployment are all key factors to wealth & income inequalities however low pay is the main reason due to the fact that the minimum wage is not enough to live on nor is it increasing with current inflation rates. The minimum wage is currently £9.18 but the Living Wage Foundation states the amount a person needs per hour to stay out of poverty is £9.90. In order to try and tackle the amount of people in poverty, the government should start by raising the minimum wage to meet the requirements needed to survive.