Poverty: Mind or Matter? What is mind? It doesn’t matter. What is (the) matter? Never mind.
Poverty: matter or mind? The state of being without Associated with need, hardship, lack of resources To be denied adequate resources to participate meaningfully in society A state in which a family’s income is too low to be able to buy the quantities of food, shelter, and clothing that are deemed necessary
Absolute poverty When a human being fails to receive the minimum amount of resources to physically sustain themselves, ie, food, water The state of being without Associated with need, hardship, lack of resources A state in which a family’s income is too low to be able to buy the quantities of food, shelter, and clothing that are deemed necessary
Relative poverty Defined by the general living standards— relative to how wealthy your society is To be denied adequate resources to participate meaningfully in society
The government measures poverty by Using a “composite index”. A list of around 40 indicators of poverty Eg. Annual income, educational achievement of an individual, employment status, health and diet
Distribution of real1 household disposable income £ per week 90th percentile Figure 5.14 Distribution of real 1 household disposable income 2 United Kingdom £ per week 90th percentile 75th percentile Median 25th percentile 10th percentile
The government tackles poverty by Collecting tax from the population National insurance Distributing the collected money fairly to… The needy: The unemployed, the sick, the young, the elderly, the disabled
Ways of distributing the money Funding the essential public services, eg. NHS Giving out benefits on a regular basis to those who are eligible
The Welfare State: a History 1601—Poor Law Act, first government interest in public welfare 1834—Poor Law Amendment Act: only for those too sick or too old to work, otherwise in workhouses (Oliver Twist, 1837) 1848-1875—Public Health Acts: local health authorities 1870—Public Health Act: interest in primary education
The Welfare State: a History 1880—Public libraries, swimming pools, parks, local government charities, self help 1944—Butler Education Act, education free and compulsory 1945—Family Allowances Act 1946—National Insurance Act 1947—National Health Service (NHS: P183, PP186-7)
The Welfare State: a History 1960s + 70s—More selective about benefits 1979—Thatcher (P184) 1979—Conservative government (P189) Increased means testing Benefit cuts Privatisation Competition between local services Caring in the community Encouragement of pluralism
The Beveridge Report 1942—Sir William Beveridge Analysis of the state of poverty and welfare Government interest in social welfare affairs
The Beveridge Report 5 things/evils Want Disease Ignorance Squalor Idleness Aim: a poverty-free society
The Welfare State has erradicated all poverty in the UK. Do you agree?
The Welfare State: Why the Need? Pensions, health care, education Should people struggle to get adequate housing? Should old age equal poverty? Should everyone be entitled to a standard of living at subsistence level? Should people be able to cease pain and not go bankrupt by long term of illness?
The Welfare State: Why the Need? Should everyone be prepared by life by having at least the secondary education? Should tertiary education be within reach for everybody or should people struggle to get that opportunity? Should basic rights like health care be provided independent of socioeconomic status?
Can the market handle it? Is there universal access to any good or service? Ability & willingness to pay Perfect information—easily accessible and comprehensible: consumers and suppliers must be well informed of the nature of the product and prices Perfect competition—product, capital market Individuals—price-takers with equal power Complete markets—do markets ensure us against inflation? Redistribution—necessary
Problems Bureaucracy—cost & efficiency In theory vs. in practice Unfair distribution—the rich taking advantage of the system and milking the government for money
Chapter 11 Welfare What do you understand by the term ‘welfare state’, as proposed by the Beveridge Report of 1942? (PP182-3) Why do you think there have been some changes in government’s attitudes towards the traditional Universal Welfare Provision? (P184) What are the main benefits and pensions available in the UK system of social security? (PP184-6) What are the basic principles of the National Health Service? How are its costs met? (P186) What is the pattern of house ownership in Britain today? Who is responsible for the provision of housing benefits? (PP188-190)
WELFARE IN BRITAIN — THE PRESENT The three main areas of welfare provision: health, housing and social security The post-war welfare structure: a combination of public and private provision From the 1980s: encouragement of provision for one’s own health and retirement by paying into private insurance schemes
Housing 1950s and 1960s — Post War slum clearance The 1980s: Sale of Council Houses Many people disagreed with this policy Local Council Responsibilities To provide adequate housing and meet special housing needs in its area, usually through the local Social Services Department
Housing Private Sector Housing Housing Benefits Help with housing costs: part of the provision of the Welfare State, either for people on low incomes or for people unexpectedly or temporarily out of work through illness or unemployment (administered by local government)
Housing The 1961 three- bedroomed semi-detached house: typical of those now standing on the Clober estate
Portsmouth Museum House he bought at his home town Library
Housing Crisis in Britain Negative equity—house price falls People are losing more money on their home than they're earning everyday at work. The Telegraph Credit crunch—less lending, tighter mortgage lending environment