Nature, existence and persistence of poverty in contemporary society

Unit 1 - WPW

What is poverty?

Lack of resources that prevents people from participating fully in everyday life. This means being excluded from social, cultural and political activities that most people take for granted

What are the two key aspects of poverty?

• Material deprivation - when people cannot afford basic goods and services like food, clothing, heating or housing

• Social exclusion - certain groups are pushed to the margins of society and cannot take part in normal social activities

E.g. someone experiencing poverty might not only struggle to buy food, but also be unable to afford to go out with friends, take their children on school trips, or participate in community activities

How to measure poverty?

1. Relative-income measure – Households are classified as poor if their income after paying housing costs is below 60% of the national median income

2. Households Below Average Income (HBAI) – An annual government report that tracks long-term trends in poverty using data from about 20,000 households

3. The Index of Multiple Deprivation (IMD) – This combines data on income, employment, health, education, crime, housing and environment to measure deprivation in different neighbourhoods

Types of poverty

• Absolute poverty - when income is so low that people can’t afford the minimum necessary for survival (the World Bank uses \$1.90 per day, roughly £1.50)

• Relative poverty - comparing to the living standards of the majority in that society, so it changes over time and between different countries (typically 60% of median household income)

(Median income - The middle point of all household incomes when arranged from lowest to highest)

Key Terms

Reserve army of labour - Surplus workers that employers can draw upon to keep wages down

Underclass - A group alleged to have developed values and behaviours that discourage employment and encourage welfare dependency

Dual burden - The expectation that women should do both paid work and unpaid domestic work

Social closure - The process by which privileged groups maintain their advantages by excluding others

Structural versus individual explanations

Level of analysis	Key idea	Example
Structural	Economic and social systems create poverty	De-industrialisation in Northern England destroying traditional jobs
Individual	Personal characteristics keep people poor	Lack of skills, motivation or budgeting ability
Policy focus	Change economic structures	Change individual behaviour through training
Sociological view	Emphasised by most sociologists	Acknowledged but seen as less important

Most sociologists argue that structural factors (like economic changes and government policies) are more important than individual failings in explaining poverty. However, they do recognise that individuals develop different strategies for coping with difficult circumstances.

Groups affected by poverty in contemporary Britain

1. Children – 3.9 million live in households below 60% of median income

2. Pensioners – Rising fuel costs create difficult choices between heating and eating

3. Ethnic minorities – Experience higher rates of in-work poverty, often linked to discrimination and migration status

4. Disabled people – Face extra costs due to their impairments, creating a poverty premium

How has poverty passes between generations

Lower educational attainment - Poor children often attend under-resourced schools and have less support at home

Spatial concentration - Poor families live in deprived areas with fewer opportunities

Limited social capital - Fewer connections to people who can help with job opportunities

Absolute poverty

AO1 - Definition: Not having enough income to meet basic biological survival needs

A02 - Example: Rowntree’s poverty line based on the cost of a basic diet, the plainest clothes and basic rent “physical efficiently“

Absolute Poverty A03

AO3 - Advantages:

• Easy to measure

• Allows comparison over time between societies

Limitations:

• Needs vary by region (e.g. heating costs)

• Needs change over time (e.g. fridges, mobiles now necessities)

Relative Poverty

Definition: Poverty judged in comparison to average living standards; linked to inequality and exclusion

Townsends’s definition: When resources fall so far below the norm that individuals are excluded from ordinary living patterns

Measurement: EU and UK standards: household income below 60% of median income (HBAI)

Relative Poverty A03

Advantages:

• Shows poverty as a social construction, dynamic and changing

• Captures exclusion from lifestyles, not just survival

Limitations:

• What counts as “normal life“ is subjective

• Can’t compare between societies

• Even wealthy groups can appear “relatively poor” like Sen’s Cadillac example

Alternative and Contemporary Measures

1. HBAI (Households Below Average Income)

Official UK measure: below 60% median income.
Limitation: does not measure how far below the line or duration of poverty.

2. Budget Standard Approach (Bradshaw et al.)

Modest-but-adequate basket of goods based on what >50% say is necessary.

3. Consensual Approach (Mack & Lansley – Breadline Britain)

Poverty = “enforced lack of socially perceived necessities” as defined by the public.

4. Severe Material Deprivation

Cannot afford ≥4 essentials: rent, heating, annual holiday, meat/fish, TV, washing machine etc.

5. Subjective Poverty

How individuals feel about their circumstances. Many avoid the label due to stigma; men deny poverty more than women.

6. Poverty Dynamics

Poverty is fluid: around one in three experience low income over four years; duration matters.

INDIVIDUALIST/CULTURAL EXPLANATIONS

(Functionalist / New Right / Culture of Poverty)

Functionalist: argue that poverty actually serves useful purposes for society:

• It ensures that undesirable, low-paid jobs get filled (Gans, 1972)

• The existence of poor people provides cheap labour for the economy

• It motivates others to work harder to avoid becoming poor themselves

The New Right: like Charles Murray (1984) argue that:

• An underclass has developed with a culture that encourages welfare dependency

• Generous benefits reduce people's motivation to work

• Benefit rules should be tightened to restore work incentives

• Summary: Poverty is caused by the attitudes, behaviours and values of the poor rather than by social structure. The focus is on personal responsibility and moral failings.

Key Ideas

·       Culture of poverty: fatalism, resignation, present‑time orientation (Lewis).

·       Underclass with deviant values: anti‑work, dependency, crime (Murray).

·       Welfare creates dependency and discourages self‑reliance (Marsland).

Why Poverty Exists (According to This View)

·       Lack of motivation, poor choices, and deviant subcultural values

·       Breakdown of nuclear family structure (e.g., rise of lone‑parent households)

·       Generous welfare benefits removing incentives to work

Strengths

·       Recognises behavioural patterns and intergenerational cycles

·       Highlights cultural dimensions of poverty

Limitations

·       Strongly criticised as victim-blaming

·       Ignores structural causes like unemployment, low wages, disability

·       No evidence of a homogeneous underclass with shared deviant values

STRUCTURAL EXPLANATIONS

(Situational Constraints; Social Democratic; Weberian)

Weberian:

Following Max Weber's ideas, this perspective focuses on:

• Poverty resulting from disadvantage in the job market

• How social status and political power, as well as economic class, shape people's life chances

• Processes of social closure where privileged groups exclude others from opportunities

Summary: Poverty is caused by structural forces (e.g., labour markets, state policy, discrimination) outside individual control. The poor are seen as blameless.

Key Ideas

·       Poverty linked to unemployment, sickness, lone parenthood, disability.

·       Access to labour market shaped by skills, status and discrimination (Weberian).

·       Welfare state failures (insufficient support, low benefit levels) trap people in poverty.

Why Poverty Exists

·       Structural constraints: low pay, insecure work, economic recession

·       Lack of childcare or support prevents full participation

·       Discrimination affects BME groups and women’s labour‑market position

·       Failures of state policy to fully address need

Strengths

·       Supported by evidence on disability, gender inequality, BME discrimination

·       Explains in‑work poverty and poverty cycles

·       Integrates social exclusion into the analysis (Townsend)

Limitations

·       Solutions require high state spending

·       Universal support may be costly and wasteful

·       Critics suggest welfare may unintentionally weaken work incentives

CONFLICT EXPLANATIONS – Marxism

Marxist Explanations of Poverty

Summary: Poverty is inevitable under capitalism and is functional for the ruling class. It reflects exploitation and class inequality.

Marxism

Marxists see poverty as an inevitable result of capitalism:

• Poverty results from capitalist exploitation of workers

• The reserve army of labour (unemployed people) keeps wages low and profits high for employers

• Inequality is built into the capitalist system, not an accident

Key Ideas

·       Capitalism needs a reserve army of labour: disposable workers

·       Profit is prioritised over welfare and job security

·       Poverty maintains false consciousness

·       Economic deprivation leads to political deprivation (Miliband)

·       Poverty benefits the wealthy (Gans): cheap labour, social control, scapegoating

Why Poverty Exists

·       Structural exploitation of labour

·       Capitalist competition keeps wages low

·       Globalisation outsources jobs and weakens workers’ bargaining power

 

Strengths

·       Explains persistent poverty in wealthy societies

·       Links poverty to global capitalism, deindustrialisation and low wages

Limitations

·       Overemphasises class, underplays gender and ethnicity

Offers few practical solutions within capitalism

CONFLICT EXPLANATIONS – Feminism

Feminist Explanations of Poverty

Summary: Poverty is shaped by patriarchal structures, gender roles, and inequalities that reduce women’s access to income.

Feminist: highlight how poverty affects women differently:

• Women face a dual burden of paid work and unpaid domestic labour

• Lone mothers are particularly at risk due to the gender pay gap and caring responsibilities

• Women's poverty is often hidden within households

Key Ideas

·       Women overrepresented among lone parents and single pensioners

·       “Feminisation of poverty”: women’s financial insecurity across the life course

·       Intra‑household inequality (Pahl): men often control spending money

·       Women make personal sacrifices (“artificial affluence”) to protect children

Why Poverty Exists

·       Gendered labour‑market disadvantage (part‑time work, low pay, childcare burden)

·       Patriarchal household dynamics

·       Structural discrimination

Strengths

·       Explains persistent gender gap in poverty

·       Highlights unpaid care work’s economic impact

Limitations

·       Some argue feminists overstate gendered inequality

·       Intersectional differences (class, ethnicity) mean not all women experience poverty equally

School of Thought	Explanation of Poverty	Key Thinkers	Why Poverty Exists
Individualist / Cultural	Behaviour, values, dependency	Lewis, Murray, Marsland	Poor decisions, deviant norms, welfare dependency
Structural	Social and economic barriers outside individual control	Townsend, Weber, Social Democrats	Unemployment, low pay, illness, discrimination, weak welfare system
Conflict – Marxist	Capitalism creates unavoidable inequality	Marx, Miliband, Gans	Exploitation, reserve army of labour, profit motive
Conflict – Feminist	Patriarchy produces gendered poverty	Hamilton, Pahl, Shildrick & MacDonald	Unpaid care roles, discrimination, lone parenthood

Labour market changes

Recent changes in work patterns have affected poverty levels:

• Growth of the gig economy, zero-hours contracts and low-paid self-employment

• Decline in trade union membership reduces workers' bargaining power

• Many people now experience in-work poverty - having a job but still not earning enough to escape poverty

Welfare policy impacts

Government benefit changes have significantly affected poverty:

• Universal Credit combines six benefits into one system, but initial problems created delays and rent arrears

• Benefit caps and the two-child limit have increased child poverty

• Benefits have fallen in value compared to average earnings

Key Terms

Poverty premium - The additional costs that poor people pay for essential goods and services

Intergenerational transmission - The process by which social disadvantage passes from parents to children

In-work poverty - Being employed but still not earning enough to escape poverty

Gig economy - Work characterised by short-term contracts and freelance work rather than permanent jobs

Social capital - The networks of relationships and connections that can provide opportunities and support