Poverty

Question 1

Define absolute poverty

Answer 1

If income is too low to ensure basic needs are met

Question 2

Poverty line

Answer 2

According to world bank: below it if living on less than $2.15 per day

Question 3

Define relative poverty

Answer 3

Living below certain threshold
Eg. In UK, a household on less than 60% of median income

Question 4

Causes of poverty

Answer 4

• unemployment
• underemployment
• family structures
• lack of education/skills
• old age/pensioner poverty
• cuts to welfare benefits
• poor health/public services
• rising income/wealth inequality
• lack of opportunity/access to finance/credit

Often a combination of

Question 5

4 types of poverty

Answer 5

• child poverty
• persistent poverty
• pensioner poverty
• fuel poverty

Question 6

Define child poverty

Answer 6

Children living in households with an income below 60% of median income

Question 7

Define persistent poverty

Answer 7

Experiencing relative low income both in current year and at least 2 out of the 3 preceding years

Question 8

Define pensioner poverty

Answer 8

Those after retirement and dependent on pension income experience financial hardship

Question 9

Define fuel poverty

Answer 9

Household that spends at least 10% on its fuel costs

Question 10

Effects of poverty

Answer 10

• Health disparities (higher rates of illness due to restricted access to healthcare)
• limited education opportunities
• unemployment and underemployment
• housing insecurity and homelessness
• food insecurity
• social exclusion
• cycle of poverty and limited upward mobility (poverty continues across generations, hard to escape)
• increased crime rates

Question 11

Anti-poverty policies

Answer 11

• tax credits to top up low pay
• increasing NMW
• increases in real value of benefits
• minimum income guarantees for pensioners and triple lock
• training programmes
• childcare schemes
• support for mortgages
• charity work and food banks
• redistribution of income/wealth inequality