Addressing Poverty (AQA GCSE Sociology)

The welfare state

• Under a welfare state, the government is in charge of providing for the social needs and ensuring the health and well-being of its people

  • This is done though providing services and state benefits

• The welfare state was created in the UK as a safety net to safeguard society's most vulnerable citizens

  • Members receive a sufficient income, healthcare, education, housing, and protection for their children

Services provided by the welfare state

• The National Health Service (NHS) provides health-care services such as GPs, hospitals, opticians and dentists

  • These are financed by national taxes collected by central government.

• There are a number of welfare benefits that are provided by the state:

  • National insurance (NI) benefits

    • Individuals with paid jobs contribute a portion of their income to the NI scheme

    • They can only receive NI benefits in the event of unemployment if they have made sufficient contributions

    • Examples of NI benefits include Jobseeker's Allowance and the state retirement pension

  • Non-contributary benefits

    • Non-contributory benefits are available to those who have not made sufficient NI contributions

    • Examples include Income Support and Child Tax Credit

  • Local benefits

    • Local councils can provide additional benefits

    • Examples include housing benefit and education benefits such as free school meals

Government attempts to address poverty

• Governments attempt to lower the number of people living in poverty by offering financial support through benefits

Selective benefits

• Selective benefits use a means test to determine who is most in need of financial assistance

  • Means tests are carried out to ensure that an individual is in need before the state provides financial assistance

  • The amount of financial assistance they receive is determined by their savings and income

• Those who oppose means testing argue that it could keep people in poverty

  • This is because their entitlement to benefits may be reduced if their income increases

    • They might receive a pay increase, for instance, but this would mean their income is too high to be eligible for benefits

    • This means that they might not be any better off or perhaps worse off

    • Some refer to this as the 'poverty trap'

• Those in need of benefits may not actually claim them despite being entitled to because the claims process is too complex and intrustive

Universal benefits

• Compared to selective benefits, universal benefits are less likely to stigmatise recipients because they are not means tested

  • For example, Child Benefit was available to anyone responsible for a child regardless of their income or savings

  • Due to the possibility of paying taxes, some individuals have chosen to opt out, especially those with high incomes (£60,000 since April 2024)

National minimum/living wage

• Another attempt to address poverty is through the introduction of:

  • a National Minimum Wage for those under 21 (£10.00 from April 2025 for 18-20 year olds)

  • a National Living Wage for those over 21 years (£12.21 from April 2025)

• It is a criminal offence for employers to not pay someone the National Minimum Wage or National Living Wage or to fake payment records

• Employers can be fined for not paying the minimum wage or taken to court by HMRC

Evaluation

• Critics argue that government attempts to address poverty are insufficient due to:

  • The unemployment rate for young people aged 16-24 years increasing

    • Between July and September 2024, the proportion of NEETs was 13.2%

  • Many young people continue to be financially dependent on their parents into their 20s and beyond

    • This suggests that the National Minimum Wage and National Living Wage are not enough

  • Zero hours contracts are used to trap workers in low-paid and insecure work, creating social exclusion, poverty and misery for a growing class of people

  • Reforms to the welfare state, such as universal credit and the benefits cap, have resulted in some groups becoming welfare dependent

  • Food banks are being used more than ever before.

    • Between April 2023 and March 2024, Trussell distributed more than 3.1 million emergency food parcels to people, which is an increase of 94% over the past five years (Trussell Trust, 2004)