1. GCSE ECONOMICS: UNIT 12
UK POVERTY
The Meaning of Poverty

2. Today you will... Understand what is meant by Poverty
Understand the difference between Absolute & Relative Poverty

3. Poverty Defined... Poverty is linked directly to standards of living
People in poverty are expected to have significantly reduced standards of living
Poverty is broken down into two main types;
Absolute Poverty
Relative Poverty

4. Absolute Poverty...
Absolute Poverty: A situation where individuals do not have access to the basic requirements (necessities/needs) of life – food, shelter, clothing
Even in developed countries such as the UK there are some people who cannot afford basic shelter
Government statistics show 2,309 people slept rough in England on any one night during 2012 - a 31 per cent rise on 2010
Local agencies report 6,437 people slept rough in London alone throughout 2012/13  - a 62% rise in two years
However, the problem of homelessness is much bigger than that of rough sleeping. The vast majority of homeless people are actually families or single people who are not literally sleeping on the streets but living with relatives and friends or in temporary accommodation.

5. Relative Poverty: Part 1
Relative Poverty: A situation where individuals are excluded from being able to take part in what are considered the normal, acceptable standards of living in a society
People in relative poverty are said to have lower income relative to other groups in society
For example, someone in poverty in the UK may still have somewhere to live and food to eat but may not be able to buy new clothes or pay the bills.

6. Relative Poverty: Part 2
Relative poverty varies between regions in the UK and over time
Indeed, someone who is regarded as relatively poor in London may be regarded as relatively rich in Middlesbrough
Furthermore, twenty years ago a personal computer was regarded as a luxury item however today they may be viewed as necessary to participate in the activities of society
One key issue to note is that if a country experiences a rise in income, absolute poverty may fall however if those on higher incomes benefit more than those on low incomes, relative poverty may rise
Someone in poverty in the UK may still have somewhere to live and food to eat but may not be able to buy new clothes or pay the bills.

7. Measuring Living Standards: Measuring Relative Poverty
In order to accurately assess the true extent of relative poverty within UK it has to be measured
People considered relatively poor are defined as having income less than 60% of the average (medium) household income
Medium average income in the year 2011/2012 was £427 per week before housing costs
60% of £427 is equal to £256 per week before housing costs which is the threshold below which people are considered to be in relatively poverty
Latest government statistics indicate there are 2.3 million (17%) children, 5.6 million (15%) working adults and 1.9 million (16%) pensioners, all living in relative poverty

8. Measuring Relative Poverty
Look at the table opposite which illustrates the percentage of households that did not feel they could afford certain items
Pick out interesting points for comparison
The UK does not fair well with other countries
The UK, Portugal and Greece had a relatively high percentage of households who did not appear to have a high standard of living

9. Poverty in the UK
Difficulties of drawing the line between those ‘in poverty’ and those outside
What do we mean by food, clothing and shelter?
Is living in a sewer a form of shelter?
Does having some clothing mean that you are not experiencing absolute poverty?

10. Poverty: Over to you
AQA provides websites of interest for the Unit on Poverty – this is the first one!
Open the website link and complete the ‘Poverty Task’ from the student shared area

11. Today you will... Understand what is meant by Poverty
Understand the difference between Absolute & Relative Poverty