Poverty and Inequality in the UK
1. Introduction
According to the ONS data, income inequality in the UK is expected to decrease in the coming years, although it will remain above the 1970s levels if it falls at the rate after the crash and will fall below that after 2030. Nevertheless, a new Ipsos MORI poll indicated poverty and inequality as Britain’s highest public concern ever (Cited in Equality Trust, 2017). According to the Equality Trust, the UK household debt is currently at £13,000 record high. This paper will examine three poverty areas: child poverty, fuel poverty, and income poverty based on the proposed poverty theories (The Equality Trust, 2017).
2. Child Poverty
Child poverty describes a condition in which children are deprived of certain items considered as ‘necessities of life’ (Bailey, 2015). However, many children in poor households are not deprived because parents struggle to cushion their children from the effects of low income. Using the Main and Bradshaw threshold of child poverty as lacking two or more living necessities, Bailey (2015) reported that child poverty in the UK was 36%. Based on the report, many children in the UK lack money to save, a holiday away from home at least one week every year, day trips with family every month, and pocket money, at a percentage of 74, 63, 54, and 42 respectively. Twenty-nine percent of children aged 10 years and over do not have their bedrooms, 23% are deprived of clubs or related activities, with 18% lacking a hobby or leisure activity. Sixteen percent lack computers and internet for homework, same as those lacking outdoor leisure equipment, as well as those participating in a school trip every month. Fifteen percent lack a special place at home for studying or doing homework. Thirteen percent lack a safe playing space nearby; the same percentage as those lacking at least four pairs of trousers, jeans, and leggings among others (Bailey 2015). Others lack new clothes and construction toys at percentages of 12 and 11 respectively. Deprivations of new fitting shoes and fruits or vegetables once daily are at 10 and 9 percent respectively. Bailey (2015) further states that 8% lack toddler group at least once every week and the same percentage lack meat, fish, or vegetarian equivalent once daily. Six percent lack suitable books to use at home, and 4 percent lack celebrations on special occasions same as the percent lacking suitable indoor games. Three percent lack a warm winter coat, and the same proportion lack three meals daily (Bailey 2015).
3. Income Poverty
Income poverty refers to a situation in which a household has less than 60% of the median household income for a given year. The value of the income poverty line in pounds per week relates to the number of people per household, implying that large households require more money than small households do to attain an equivalent standard of living (Parekh, Maclnnes and Kenway, 2010).
Income poverty is measured mainly through the Minimum Income Standard (MIS), based on the perception of the public about the amount they need to achieve a minimum acceptable standard of living in the United Kingdom. Based on this measure, Padley, Hirsch, and Valadez, (2017) reported that 30% (19 million people) of the UK population was below MIS in the FY 2014/2015. The proportion below 75% of MIS was 17.5%, 11 million people. Three out of four single parents have incomes below MIS with almost half having incomes lower than 75% of MIS (Padley et al., 2017).
4. Fuel Poverty
The government of the UK defines fuel poverty as expenditures of more than 10% of household income on fuel to maintain their homes in favourable state. This status is determined by the interplay of various factors, of which the key factors include energy cost, energy efficiency of the property, and household income. In 2009, around 4.0 million households were in the bracket of fuel poverty. This number constitutes 18% of all households in England. The rates of fuel poverty differ from one region in England to another (Fuel poverty, n.d.). Fuel poverty is most prevalent in West Midlands and North East with highs of 22 and 21 percent respectively. East Midlands and Yorkshire have a prevalence of 18 percent, 1 percent lower than the North West area. South West, East and London areas had 15, 13 and 11 percent, respectively. South East area had the lowest fuel poverty at 10 percent.
5. Conclusion
Poverty is classified into different categories. However, these categories overlap. Fuel poverty and child poverty all relate to income poverty. Fuel poverty relates to the proportion of the income a family allocates to fuel for keeping their homes comfortable. Child poverty refers to access to the necessities of life, and income poverty refers to a comparison of an individual house income lower than the MIS.
References
Bailey, N 2015, Reduced scales for measuring deprivation: evidence for the UK and scotland from the PSE-UK survey. [Online].
‘Fuel poverty’ n.d., The Poverty Site. [Online].
Padley, M, Hirsch, D & Valadez, L., 2017. Households below a Minimum Income Standard: 2008/09 to 2014/15. Joseph Rowntree Foundation. [Online].
Parekh, A., Maclnnes, T., and Kenway, P., 2010. Monitoring poverty and social exclusion. Joseph Rowntree Foundation. [Online].
The Equality Trust 2017, Latest Research.
