REASONS WHY INCOME AND WEALTH INEQUALITY EXIST (13/20)

INTRODUCTION

• poverty as defined by sociologist peter townsend, is the lack of resources to meet the basic needs, including social participation, which others take for granted

• as of 2022, the joseph rowntree report found that 22% of the uk lived in poverty (19% poverty rate in scotland, 22% poverty rate in england)

• unemployment, low pay, educational attainment, and gender

UNEMPLOYMENT

many say that poverty is largely a result of unemployment, with it increasing the likelihood of someone being in poverty. when you are unemployed you aren’t earning enough for basics and might not be able to gain the skills that are necessary for gaining employment making it harder to escape poverty. for households in which one person works full-time, poverty rate is 10% and for those in households where nobody works the poverty rate rises to 50%. this highlights that unemployment has a direct correlation to poverty as those who live in households where nobody works are far more likely to face poverty than households with people in full-time employment. this is further exemplified by the fact that the likelihood of being in poverty whilst being in receipt of benefits has increased over time with 54% of families in receipt of universal credit being in poverty. this shows that those receiving benefits are more likely to be experiencing poverty, with most benefits being received by those who cannot/do not work.

LOW PAY

low pay is any family who earns less than 60% of the average uk household income. low pay can cause instability and inequality amongst employees as although they work, they do not get paid fairly or in the correct manner resulting in employees not being able to pay for the things considered to be basic needs. poverty rates by sector vary, suggesting that some sectors get paid more than others, with recent studies showing that admin and support services sectors have seen an increase in poverty rates from 12% in 2011/2012 to 23% in 2021/22. it can be understood here that the sector is underpaid which directly links to the increasing poverty rates amongst its workers. furthermore, around two thirds of working-age adults on the poverty line live in households where at least one adult works. this highlights that poverty is perpetuated by low wages as although people have jobs, they struggle to afford the basics to live.

EDUCATIONAL ATTAINMENT

educational attainment is the term used to describe the highest degree of education someone has. there is a direct link between poor educational attainment and poverty with poor educational attainment leading to difficulty getting a high paid job and therefore staying out of poverty. just over 1 in 10 working-age adults with an undergraduate degree or above are living in poverty compared to more than 4 in 10 working-age adults with no qualifications. this conveys the direct link between those with no degree and those in poverty. furthermore, children in disadvantaged schools were more likely to view education as a way of avoiding problems in the future whereas children in advantaged schools saw education as a way of ensuring a good life as an adult. this highlights that those from disadvantaged areas see school to be a necessary way to break the poverty cycle. low educational attainment often leads to poverty as those with poor education struggle to get well-paying jobs to support themselves.

GENDER

gender often perpetuates poverty as many workplaces still operate with a gender pay gap. this makes woman more susceptible to poverty as in some cases they do not get paid the same as their male counterparts. women make up 48% of the uk workforce and 55% of university graduates, however, women are still subject to employment and income inequalities. it has been shown that 78% of firms in the uk still have a gender pay gap that favours men, and all sectors have a gender pay gap that favours men, with low-paid women being paid roughly 10% less than low-paid men. this highlights that women are often paid less than men, leaving them more likely to be impacted by poverty.