Causes of income/wealth inequality

Question: What is the main point about the National Living Wage (NLW) and poverty?

Answer: Someone working full-time on the National Living Wage (NLW) shouldn’t be in poverty.

Question: Why does the government claim work is the best way out of poverty, and why is this challenged?

Answer: The UK Government says work prevents poverty, but wages have grown slowly for 20 years leaving many still struggling.

Question: What evidence shows that working does not always prevent poverty?

In 2022 64% of working-age adults in poverty lived in households with at least one worker showing wages aren’t enough to prevent poverty.

Question: How does in-work poverty highlight issues with the NLW?

Analysis: 23% in admin faced poverty in 2022 as NLW too low

Question: What is the government’s argument in defence of the National Living Wage?

Counter Point - Government says NLW balances.

Question: How does the Living Wage Foundation challenge the government’s claim?

Answer: NLW is too low and suggests living wage.

Question: What example shows that job security is also a major issue for low-paid workers?

Answer: Amazon and Uber workers have zero-hour contracts.

Question: Why does job insecurity make low pay an even bigger problem?

Answer: 1 in 3 workers have job insecurity and higher wages may not help.

Question: How does the argument link back to the overall issue of income and wealth inequality?

Answer: Low wages and job insecurity cause inequality raising NLW helps reduce it

Q: What is the main idea about education and poverty?

Point – Poor education causes poverty.

Q: Why is education important in preventing poverty?

Explain – Education improves jobs and income reducing poverty

Q: Can you give an example of how education influences poverty levels?

Example – 1 in 10 graduates are poor vs 4 in 10 with no qualifications.

Q: What does this example show about education and poverty?

Analysis – Higher qualifications reduce poverty risk.

Q: What is a counter point to the idea that education alone can prevent poverty?

Counter Point – Location impacts poverty.

Q: How does location affect someone's chance to use education to escape poverty?

Counter Explain – Scotland has free tuition while England charges up to £9,250.

Q: Can you give an example of how location impacts poverty rates?

Counter Example – Scotland 19% poverty vs England 22% due to education.

Q: What does the counter example suggest?

Counter Analysis – Education helps but location and cost limit impact.

Q: How can we summarise the relationship between education and poverty?

Link – Education is key but barriers must be overcome.

Q: What is a key factor affecting poverty related to government policy?

Point – Government policies affect poverty levels.

Q: How do government policies affect those in poverty?

Explain – Half of UK families get support yet remain in poverty.

Q: Can you give an example of government support for low-income individuals?

Example – Universal Credit supports low-paid workers.

Q: How does the UK government’s stance on benefits affect poverty?

Analysis – From 2010 to 2024 governments cut benefits worsening poverty

Q: What is a counterpoint regarding the effectiveness of government benefits?

Counter Point – Universal Credit isn't enough to escape poverty.

Q: How do certain changes in benefits affect families?

Counter Explain – The Benefit Cap Two-Child Limit and Bedroom Tax hurt larger families.

Q: Can you provide an example of how benefit cuts have impacted people?

Counter Example – The Benefit Freeze cut £450 per family by 2020.

Q: What do statistics show about the effectiveness of benefits in reducing poverty?

Counter Analysis – Benefit claimants are 3x more likely to be in poverty.

Q: How does Universal Credit specifically affect claimants?

Link – Universal Credit delays increase poverty and homelessness.