Download Lesson 4 - Reasons to Explain the Existence of Poverty

Lesson 4 - Reasons to Explain the Existence of Poverty
Learning Intentions (Pupils should be able to:):
• Explain what is meant by the term ‘social exclusion’
• Explain reasons, both political and social / economic, for
the continued existence of poverty in the UK
Social Exclusion
‘Social exclusion’ is a phrase used to describe the lives of
people who are not benefiting from progress in society. In
some ways, social exclusion is the modern term for a
lifestyle of poverty and deprivation. People who are
‘socially excluded’ are more likely to:
• Lack employment
• Have poor employment and social skills
• Live on a low income
• Not value education
• Have poorer housing and health
• Live alone
What Causes Social Exclusion?
The causes of social exclusion are complicated.
Arguably, social exclusion has been partly
caused by the policies of successive government.
On the other hand, changes in employment patters,
attitudes within society and the lifestyle choices of
individuals, can also result in people becoming socially
excluded.
What is without argument is that social exclusion has
increased in the last 20 years.
Note: Recently, there has been a great deal of debate over
the extent of social mobility in the UK. Social mobility is
the term used to describe people moving up the social scale.
Although it is possible for people to ‘rise and go’, many
people believe social mobility has declined in recent years.
Reasons to Explain Social Exclusion
1. Policies of Government
• Tax Policy. One aim of the tax system is to be
progressive. This means those with the most income should
pay the highest proportion in tax. Between 1979-1997, when
the Conservatives were in power, policies that reduced
taxes on the rich were a priority (regressive taxation). This
resulted in the tax burden, the amount of tax paid as a
proportion of all income received, being shifted from the
richest to those on modest incomes. Under Labour, since
1997, taxation has increased on middle/higher earners but
only reduced marginally on those on the lowest incomes.
Examples of regressive taxation - increasing VAT (paid on
purchase of most goods) from 8% to 15% and then to
17.5%. Reduction in top earners tax to 40% from 83%.
Example of progressive taxation - Labour cut income tax
for lowest earners from 22% (standard rate) to 10%. But
then made huge mistake in April 2008 when they abolished
10p tax rate. The standard rate of tax also fell to 20p in £.
• Benefits - A wide range of social security benefits are
paid to those in need. In the past, benefit rates used to
rise in line with earnings so when those in work became
better off, so did those on benefits . However, the
Conservatives broke the link between benefits and average
earnings and instead benefits were to rise in only line with
inflation, leaving those dependent on benefits relatively
worse off. Labour has not restored this link.
• 2010 update – October’s spending review has received a
mixed response. While there is recognition that the budget
deficit needs tackled, critics of the government claim the
poorest groups will see their incomes fall disproportionately
more as the welfare budget has been cut by £18 billion.
Reasons to Explain Social Exclusion
2. Social / Economic Reasons
• Unemployment rates in the UK are, at the time of
writing, historically low. However, the number of workless
households dependent on benefit has soared (lone parents,
pensioners, those on Incapacity Benefit, etc.). For many
work ‘no longer pays’ or is impossible to secure.
Note: A ‘Cycle of Poverty’ often occurs within the poorest groups in
society. Poor child in workless household / few expectations / low
self-esteem / poor educational attainment / unemployment or low
pay...etc.
• Employment Patterns. As technology has impacted on
work, some people with skills (IT, management, finance,
etc.) have seen incomes rise but those with the least
education or skills have seen incomes fall. Many of these
people can only secure low paid, part-time employment.
• Housing. Councils or housing associations are the main
accommodation providers for those on low incomes.
However, those who are ‘socially mobile’ (i.e. the
successful people) combined with government’s failure to
build enough affordable homes (SNP changing this), ‘social
housing’ has increasingly been of the poorest type in the
poorest areas e.g. peripheral housing estates or inner city.
Poor housing is closely linked to social exclusion: poor
housing (multis/tenements on ‘sink’ estates), leads to
poorer health (damp, overcrowding, etc.), greater
likelihood of suffering crime, ‘sink schools’ with low
educational attainment, etc.
Homeless people are in all ways
socially excluded.
Questions
1.What is meant by the phrase ‘social exclusion’?
2. Describe the characteristics of someone ‘socially excluded’.
3. Explain the difference between progressive and regressive
taxation. Give examples in your answer.
4. Why might successive governments be accused of increasing
social exclusion? Make two points.
5. Complete a spider diagram to show the economic and social
reasons for social inclusion.
Reading “Modern UK Social Issues” pages 12-13.
2009/10 Update
The recession has markedly increased inequality. With the
number of unemployed people rising to 2.47m in Sept. ‘10 or
7.9% (Scotland 0.239m or 8.9%) of all working people. In
the 16-24 age group, around 1m people are now unemployed.
The last UK Government allowed borrowing to rise sharply
to fund benefit payments and maintain spending to keep the
economy going. It has also ‘nationalised’ the banks but many
economists expect the government to sell its shares in the
banks when the economy recovers.
Further, the Government increased the income tax rate to
50p in the pound (£) on those earning £150,000 from April
2010.
Con./Lib Dem. October Spending Review will result in big
reductions in welfare payments with the poorest groups,
arguably, being proportionately worst hit.