Over the next several periods we will… Identify how poverty is tackled in the UK Identify what central government, the Scottish government, councils, voluntary groups and private companies do to tackle poverty in the UK Understand the arguments over whether these organisations do too much or too little to tackle poverty

Success Criteria I will be able to identify the different aspects of the benefits system in Britain today I will be able to identify what different organisations are doing to tackle poverty I will be able to reach a judgement as to whether or not the benefits system is too harsh or too generous

Tackling Poverty: UK Government Lesson Starter In what ways does the government help to tackle poverty? Write as many ways as you can think of.

Tackling Poverty: UK Government What benefits do you think this money is spent on? Why? Number yourself 1-4. On your own think about the following benefits. What are they? Who might claim them and why. Rank the following benefits in order with the most spent first. Job Seeker’s Allowance Pensions Disability Living Allowance Housing Benefit Discuss benefits here. May find that some pupils think most benefits are given to the unemployed but next slide shows that total spent on JSA is fairly low compared to other benefits. Most is spent on pensions.

Tackling Poverty: UK Government The Department for Work and Pensions is the biggest spending department in the UK Government. In the financial year 2016-2017, the UK government spent £264 billion on welfare, which made up 34% of all government spending

Tackling Poverty: UK Government When asked how they thought that money was spent the British public suggested:

Tackling Poverty: UK Government The actual split looks more like this: Total pension spending has increased by 9% since the financial year ending 2013. This isn’t surprising as life expectancy has been steadily increasing, so State Pensions are being claimed for longer.

Tackling Poverty: UK Government Over £46 billion goes on family benefits, income support and tax credits. This includes benefits such as Child Benefit and support for people on low income. Around £2.2 billion goes to the unemployed. For unemployed people claiming Jobseeker’s Allowance or Universal Credit, there were 804,100 people claiming these benefits in September 2017. This number has increased by 3.3% compared with a year earlier.

Tackling Poverty: UK Government The Conservative government introduced a cap on government welfare spending in 2014, covering some but not all types of payment. The basic state pension and some unemployment benefits were excluded from the cap. This cap on spending has had a massive impact on some groups of people in society and the Conservative government has been widely criticised by many charities for “punishing the poor”.

Total spent on “benefits” in 2015-16: £217 billion Highest spend is on pensions The amount spent on “the dole” is actual very small: just £2.4 billion of the total benefits spend in 2015-16.

Government spending figures 2016-2017: https://www. ukpublicspending

Should there be a benefits system? Class discussion…debate if time?

Should there be a benefits system? YES NO A democratic society should look after the poorest and weakest in society Having no benefit system would lead to an increase in crime as poor people need to get money somehow Some people deserve help – the disabled, lone parents, unemployed etc. Anyone can face difficulties such as becoming unemployed or developing a health problem and so they should be entitled to help The government should be responsible for creating jobs and helping people get jobs Children should not suffer because of their parents’ mistakes The system creates equality Why should people that work have to pay for people that don’t? Why should people have to pay for drug addicts, alcoholics etc. to get benefits when they choose to become addicts? People on benefits are “laughing at” people who go to work People should take responsibility for their own actions – not look to the government for everything The system costs too much - taxes would be better spent on other things like improving education and healthcare People cheat the benefit system by working and claiming benefits The benefits system encourages people to be lazy Turn into a cut and paste task

Tackling Poverty

Tackling Poverty You need to know about what is happening to tackle poverty. This is the responsibility of: UK Government (London) The Scottish Parliament Local Authorities (Councils) Voluntary Sector Private Sector

Central Government The UK Government’s Department of Work and Pensions are responsible for providing people in need in the UK with financial support. Some of these benefits have been around for a long time and are listed below. However, the Conservative-Lib Dem coalition introduced numerous changes including the creation of “Universal Credit”. Jobseekers Allowance (JSA) Income Support Employment and Support Allowance (ESA) (Formerly Incapacity Benefit) Disability Living Allowance (DLA) Cold Weather Payment Winter Fuel Payment Sure Start Maternity Grant Community Care Grant Social Fund Tax Credits Minimum Wage

The Jobcentre This helps people who are out of work to find work. Also helps people to claim benefits. Unemployed people can use this service to arrange mock interviews, look at job vacancies and meet with special job advisors.

Jobseeker’s Allowance (JSA) This is the main benefit for people who are out of work. Must be looking for work or working under 16 hours per week and be over 18. To keep getting JSA you must go to a Jobcentre office every two weeks to show how you’ve been searching for a job. This is known as ‘signing on’.

Income Support This is extra money to help people on a low income and people working less than 16 hours per week. It is for people who don’t have to sign on as being unemployed.

Employment and Support Allowance (ESA) This is financial help to people who are unable to work because of illness or disability. Aims to help people into work. Evidence suggests people who work are in better health.

Personal Independence Payment (PIP) For people who have severe difficulty walking, need help getting around or need to be looked after. This replaces the previous Disability Living Allowance for those aged 16 and above.

Cold Weather Payment Money towards heating costs during very cold weather. Available to people on income support, JSA, ESA or Pension Credit. Payment of £25 for each 7 day period of very cold weather between 1 November and 31 March.

7. Winter Fuel Payment An extra payment to help older people with the cost of heating bills. Amount paid depends on a person’s circumstances. Payments range from £100 to £300.

8. Universal Credit Universal Credit is a new benefit that has started to replace 6 existing benefits with a single monthly payment into your account. Universal Credit is meant to help people be better off in work, start a new job or work more hours. Universal Credit will eventually replace: Income-based Jobseeker’s Allowance Income-related Employment and Support Allowance Income Support Working Tax Credit Child Tax Credit Housing Benefit

8. Universal Credit Universal Credit started to be introduced in stages from April 2013. The plan was to make Universal Credit available in each part of Great Britain during 2016. New claims to existing benefits, which Universal Credit has replaced, will then close down, with the vast majority of claimants moving onto Universal Credit during 2016 and 2017. There are no limits to the number of hours you can work a week. The Universal Credit payment will reduce gradually as you earn more – the idea is that a person will not lose all of their benefits at once if they start to work. https://www.youtube.com/watch?v=X6I9UDFyABM

Impact? The coalition government estimated 3.1 million households would be entitled to more benefits as a result of universal credit. 2.8 million households were expected to be entitled to less. Those households were initially to receive a top-up payment to protect them from a drop in income. New claimants will receive the lower payment. Across all households, ministers stated there would be an average gain of £16 per month.

8. Universal Credit How much people receive depends on their personal circumstances. Universal Credit is paid differently to current benefits. It’ll be paid once a month into a persons bank or building society account. Any help people get with rent will be included with their Universal Credit payment and then they pay the landlord yourself. People have to sign a ‘Claimant Commitment’ to make a claim for Universal Credit. The individual and their ‘work coach’ will decide what goes into the Claimant Commitment, e.g.: what you need to do to look for work (e.g. registering with recruitment agencies, writing a CV) how many hours you need to spend looking for work each week your circumstances (e.g. work history, health, family or caring responsibilities) Your benefit might be cut if you don’t do what’s in your Claimant Commitment.

Critics of Universal Credit The government thinks this will help promote good budgeting and more closely replicate monthly salary payments – arguing that 75% of all employees receive wages monthly. "This will help smooth the transition into monthly paid work, encourage claimants to take personal responsibility for their finances and to budget on a monthly basis which could save households money. Campaigners are worried that the shift from weekly and fortnightly payments to this new regime may push claimants recipients into debt. The National Housing Federation says the shift from paying landlords to paying claimants direct for the housing benefit element could trigger unprecedented levels of arrears and increased rent collection costs 84% of associations believe that rent arrears will increase as a direct result of welfare changes. BBC obtained figures that showed when the direct payments were piloted in six areas of the country there was a big rise in rent arrears as some tenants failed to pass that money on, with arrears rising from about 2% to 11%.

Tackling Poverty: UK Government Successive UK Governments have also introduced several other policies to tackle economic and social inequalities which are not “benefits”. Similarly, these policies have had mixed success.

National Minimum Wage A government policy targeted to reduce social inequality is the National Minimum Wage introduced in April 1999 by the then Labour Government which continues today. Its aim is to remove the problem of ‘poverty pay’ where earnings from paid work do not adequately cover living expenses. In the years since its introduction, the National Minimum Wage has been considered largely successful, with the Political Studies Association calling it the “most successful British government policy of the past 30 years”.

NMW rates are reviewed yearly and in 2017 for example, it was set at £4.05 for those under 18 and £7.05 for those between 21 and 24. This has reduced social inequality particularly for families and mothers as it means that part time workers (usually low paid) are now paid a higher wage. The 2013 Low Pay Commission Report claimed that the NMW applies to over 1.3 million workers and it has reduced the gender inequality gap as women account for 59 percent of low paid jobs, which means the NMW has had a greater impact on raising women’s earnings in comparison to men. April 2017 April 2018

However, many employers do not comply with the NMW standard and are not punished for under paying their workers. Moreover, given the increasing costs of living in the UK, many people believe that the NMW does not go far enough in attempting to raise people out of “poverty pay”. The Living Wage Foundation – a UK prominent charity – suggest that, in order to afford basic necessities, an individual needs to earn £8.75 per hour minimum.

National Living Wage In 2016, a similar policy was introduced by the Conservative government: the National Living Wage. This wage standard of £7.50 per hour for those aged 25 and over (which is set to increase to £7.83 in April 2018) is higher than the minimum wage. It aims to help people better sustain a good living standard. This can be seen as effective in reducing inequalities as it could potentially provide people in low paid jobs with an opportunity to save for the future, or enjoy a small amount of disposable income.

However, higher wages are only reflected by the price of goods and services, which businesses will alter to maintain profits, and so this means the NLW is less effective in reducing social inequalities as people still struggle to afford certain basic goods. This is particularly the case in recent years as inflation of prices of everyday products is rising faster than wages. Furthermore, the NLW does not apply to under 25s, a group which in recent years have become predominant in unemployment and poverty rates. Clearly this shows that by excluding under 25s, the NLW could result in further social inequalities for young people and so is ineffective. For example, young earners with families will earn significantly less than older workers, even for the same jobs. This means for young people, work won’t provide a root out of poverty and so clearly NLW doesn’t reduce social inequalities.

The Scottish Parliament As “benefits” remain a reserved power, the Scottish Government has put in place a variety of different policies and schemes in an attempt to tackle poverty in Scotland. The majority of Scottish Government policies relate to improving child poverty and inequality related to low income.

Aims of Scottish Government Works to improve health, housing, educational attainment, employability and access to services. Abolition of Prescription Fees Abolition of Tuition Fees Free School Meals for all P1-3 Combatting the Bedroom Tax https://www.theguardian.com/education/2018/feb/16/council-free-school-meals-year-holiday-hunger-north-lanarkshire http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-30671988

Abolition of Tuition Fees In Scotland, the SNP abolished university tuition fees for ALL in 2007. This can be seen as a success in reducing social inequality by opening up the chance for young people from deprived backgrounds to receive higher education. In theory, this makes social mobility more likely as people who would have previously been unable to take advantage of this opportunity due to financial constraints now have the chance to pursue higher education, which has been proven to lead to higher earnings in later life.

Abolition of Tuition Fees However, in reality free university places means more people are applying to higher education and so entry requirements get higher. As a result, children from deprived backgrounds find it harder to compete with richer children who benefit from tutoring and private schooling. Clearly this indicates that free university places are less effective in reducing social inequality because it increases the difficulty of actually achieving the results required to be granted a place to study which disadvantages those from poorer backgrounds. This can be seen in the relatively small increase in the number of young people from poorer areas attaining a degree from 3% to just 5% when compared to the much more significant 20% increase in the percentage of affluent young people who have achieved university degrees in recent years.

Free School Meals for all P1-3 In January 2015 the SNP introduced a policy which entitles all Scottish children from primary 1 to primary 3 to receive free school lunches. The Scottish Government have estimated that the policy will save families, on average, £330 per year. Young children will benefit from this as it is aimed to promote healthy eating as well ensure a substantial meal so that children can better focus and learn in school. This policy aims to reduce the inequality gap that currently exists due to the fact that pupils from affluent areas tend to perform better in school even from a young age as they are often better nourished and thus able to concentrate more in their lessons. http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-30671988 http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-30671988

Free School Meals for all P1-3 However, again there are limitations on the impact of this policy. Firstly, the policy excludes older children. Such as been the impact as pupils move into P4 that Glasgow City council has announced it will pay money from its own budget to extend free schools to the next year group up from next August. Furthermore, Scottish Labour have argued that, since the most deprived pupils were already entitled to free schools meals throughout their time in education, all the policy has achieved is a £330 saving per year for the most affluent families which will in fact further the inequality gap – not close it. http://www.bbc.co.uk/news/uk-scotland-scotland-politics-43141802

I can… I will be able to identify the different aspects of the benefits system in Britain today I will be able to identify what different organisations are doing to tackle poverty I will be able to reach a judgement as to whether or not the benefits system is too harsh or too generous