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“Solutions to Poverty”
Policies & Perspectives
Assessment Criteria
• Outline and critically evaluate different
explanations of social inequality and poverty.
• Outline and critically evaluate research
evidence relating to social inequality and
poverty.
MAKEPOVERTYHISTORY
Nelson Mandela - 3rd February, 2005
• http://www.youtube.com/watch?v=1NennM
CLG7A
MAKEPOVERTYHISTORY
• Urged the government and international
decision makers to make meaningful policy
change on three critical and inextricably linked
areas: trade, debt and aid.
Trade justice
• Fight for rules that ensure governments,
particularly in poor countries, can choose the
best solutions to end poverty and protect the
environment.
• End export subsidies that damage the
livelihoods of poor rural communities around
the world.
• Make laws that stop big business profiting at
the expense of people and the environment.
Drop the debt
• The unpayable debts of the world's poorest
countries should be cancelled in full, by fair
and transparent means.
More and better aid
• Donors must now deliver at least $50 billion
more in aid and set a binding timetable for
spending 0.7% of national income on aid.
• Aid must also be made to work more
effectively for poor people.
MAKEPOVERTYHISTORY
• On January 31, 2006, the majority of the
members of the campaign passed a resolution
to disband the organisation
• The British coalition had only agreed to come
together formally for a limited lifespan, to
correspond with Britain holding the
presidency of the EU and G8.
Evaluation
• The relief is spread over some 40 years, amounting to
$1 billion per year; The net present value of the deal is
about $17 billion.
• It is tied with many economic conditions that have
caused poverty and debt misery in the first place;
• These conditions are undemocratically imposed by rich
countries and their institutions, and promote what has
historically been unequal trade;
• What countries get in debt relief, they will lose in
future aid. (Give with one hand, take with the other)
http://www.globalissues.org/article/541/g8summit-2005
Poem
• More Precious than Gold
More Precious than Gold
• http://www.youtube.com/watch?v=ayg8NriNE
dU
The Child Poverty Act 2010
• In March 2010 the Child Poverty Act was
passed, legally binding the government to a
commitment to eradicate child poverty in
Britain by 2020.
• For the first time ever, government and local
authorities have been set targets to end
childhood poverty for good.
[online]
http://www.legislation.gov.uk/ukpga/2010/9/contents
Child Poverty Act targets
The Act imposes a legal duty on current and
future governments to move towards four UKwide targets by 2020 as follows:
• Relative poverty – for less than 10% of
children to live in relative low income families.
• For the purposes of this target, low income is
defined as an equivalised net income below
60% of the UK median.
http://www.cpag.org.uk/content/child-povertypromise-and-child-poverty-act
Combined low income and material
deprivation
• For less than 5% of children to live in material
deprivation and low income families.
• For the purposes of this target, low income is
defined as an equivalised net income below
70% of the UK median.
Absolute poverty
• …for less than 5% of children to live in
absolute low income families.
• For the purposes of this target, absolute low
income is defined as an equivalised net
income below 60% of an adjusted base
amount, with the base year being 2010/11.
Persistent poverty
• … for fewer children to live in relative poverty
for long periods of time, with the specific
target to be set at a later date.
• For the purposes of this target, a long period
is defined as three years or more
Child Poverty duties
• The Act also imposes a range of duties on local
authorities. They are obliged to undertake a child
poverty needs assessment and must co-operate
with partner agencies with a view to reducing
child poverty. These agencies include:
–
–
–
–

district councils
the police and criminal justice systems
transport authorities
health authorities
http://www.cpag.org.uk/content/child-povertypromise-and-child-poverty-act
Current Situation
In 2011/12:
• 17% of children (2.3 million) were in
households in the UK with incomes below 60%
of contemporary median net disposable
household income before housing costs (BHC),
• 27% (3.5 million) after housing costs (AHC).
Historical Comparison
• Compared to 2010/11, this represents a fall of
0 percentage points (no change in numbers)
on a BHC basis and a fall of 0 percentage
points (no change in numbers) AHC.
Historical Comparison
• Compared to 1998/99, this represents a fall of
9 percentage points (1.1million) on a BHC
basis and a fall of 7 percentage points (0.9
million) AHC.
•

Dept for Work and Pensions [online]
https://www.gov.uk/government/collections/households-below-average-incomehbai--2
Evaluation of Measurement
• http://www.youtube.com/watch?v=avJHYeFb
o8c

• http://www.telegraph.co.uk/news/newsvideo
/9856092/Government-child-poverty-targetsunincentivising-work-says-think-tank.html
So poverty still exists……
 A cultural explanation
blames the existence and
persistence of poverty on
the individual’s
culture/behaviour/way of
life.

 A structural explanation
blames the existence and
persistence of poverty on
wider society, or the
government

 Also known as:

 Also known as:

Right-wing explanations
‘Dependency’ explanations
 The New Right perspective
and the Culture of Poverty
theory agrees with this
view.

Left wing explanations
Societal explanations
 Marxists, Social Democrats
and the ‘cycle of
deprivation’ theory all
agree with this view.
Lewis (1968) – The Culture of Poverty Theory
• Studied a poor community in Mexico
• Found their way of life was keeping them in poverty
• Children were taught different norms and values from
mainstream society:
– ‘Fatalism’ – acceptance of their situation, rather trying to change it
– ‘Immediate gratification’ – spend any money they had immediately – did not
save up for the future or stay on at school.

• Therefore, poor children grew up to be poor adults, who then
brought up the next generation of poor children…
The New Right Perspective: Charles Murray
(1989)
• A political and sociological perspective

• Associated with ‘Thatcherism’ from the
1980s
• A ‘right wing’ approach:
– capitalism is the best way to run the
economy
– People should be allowed to make as
much money as they like
– The government should not interfere
– ‘Lazy’ people should not be dependent
on government benefits!
The Marxist View of Poverty
• Poverty is caused by capitalism
• Poverty is inevitable under capitalism
• The bourgeoisie pay the proletariat low wages in
order to maximise profit.

• The proletariat suffer from false consciousness,
thinking their wages are fair and reasonable.
The Social Democratic View of Poverty
• A political and sociological perspective
• Believes capitalism is acceptable with government
intervention

• Government should provide range of benefits for the
poor
• The rich should pay high taxes to help the poor
• Key sociologist: Frank Field (1989)
Field
• When Field’s theory was published in
late 1980s, New Labour pledged to
abolish the poverty trap.
• Field’s research focused on citizenship
and exclusion and that in recent history
certain groups had been excluded from
rights that citizens should enjoy
• These groups included the long term
unemployed, lone parents, pensioners
Field was concerned about..
• The increasing gap between rich and poor
• The increasing long term unemployed
• The stigmatisation and blaming of the poor for
their poverty rather than reflecting on wider
economic and social factors
• His solution to concentrate on a better
organised and comprehensive welfare state
Policies that resulted…
– Tax credits now exist
– Sure start provides some free nursery places for 34 year olds etc. etc. etc.

• However, Murray would say that Field ignores
the fact that there shouldn’t be lone parents
in the first place, and that some people just
don’t want a job.
The Functionalist Explanation of
Poverty
Herbert Gans (1971)

•
•

Poverty exists and persists because it is functional!
Poverty performs 13 functions – some for individuals and some
for society

Examples:
• Poverty creates jobs for the middle classes – police officers, social
workers etc.
• Poverty helps the economy - out-of-date food, last-season clothes
and old cars are all bought by the poor!
• Poverty ensures that all jobs are filled in society – the poor will take
up dull/dangerous/dirty jobs that no one else wants!
The Coalition’s Welfare Reform
White Paper published in November 2010:
• The current system is too complicated because
there are more than 50 different
benefits/payment schemes available
• Need to reduce the number of people on
benefits, especially the long-term unemployed.
The Coalition’s Welfare Reform
• To reform the benefit system & make “it fairer,
more affordable and better able to tackle
poverty, worklessness and welfare dependency”
the coalition introduced a introduced a new
benefit policy called universal credit.
Welfare Reform Act 2012
• The benefit cap will see couples and single
parents receive no more than £500 a week in
benefits.
• The limit for single people is £350, although
there are some exemptions.
Bedroom Tax
• Welfare reforms cut the amount of benefit
that people can get if they are deemed to
have a spare bedroom in their council or
housing association home.

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Poverty Strategies

  • 2. Assessment Criteria • Outline and critically evaluate different explanations of social inequality and poverty. • Outline and critically evaluate research evidence relating to social inequality and poverty.
  • 3. MAKEPOVERTYHISTORY Nelson Mandela - 3rd February, 2005 • http://www.youtube.com/watch?v=1NennM CLG7A
  • 4. MAKEPOVERTYHISTORY • Urged the government and international decision makers to make meaningful policy change on three critical and inextricably linked areas: trade, debt and aid.
  • 5. Trade justice • Fight for rules that ensure governments, particularly in poor countries, can choose the best solutions to end poverty and protect the environment. • End export subsidies that damage the livelihoods of poor rural communities around the world. • Make laws that stop big business profiting at the expense of people and the environment.
  • 6. Drop the debt • The unpayable debts of the world's poorest countries should be cancelled in full, by fair and transparent means.
  • 7. More and better aid • Donors must now deliver at least $50 billion more in aid and set a binding timetable for spending 0.7% of national income on aid. • Aid must also be made to work more effectively for poor people.
  • 8. MAKEPOVERTYHISTORY • On January 31, 2006, the majority of the members of the campaign passed a resolution to disband the organisation • The British coalition had only agreed to come together formally for a limited lifespan, to correspond with Britain holding the presidency of the EU and G8.
  • 9. Evaluation • The relief is spread over some 40 years, amounting to $1 billion per year; The net present value of the deal is about $17 billion. • It is tied with many economic conditions that have caused poverty and debt misery in the first place; • These conditions are undemocratically imposed by rich countries and their institutions, and promote what has historically been unequal trade; • What countries get in debt relief, they will lose in future aid. (Give with one hand, take with the other) http://www.globalissues.org/article/541/g8summit-2005
  • 11. More Precious than Gold • http://www.youtube.com/watch?v=ayg8NriNE dU
  • 12. The Child Poverty Act 2010 • In March 2010 the Child Poverty Act was passed, legally binding the government to a commitment to eradicate child poverty in Britain by 2020. • For the first time ever, government and local authorities have been set targets to end childhood poverty for good. [online] http://www.legislation.gov.uk/ukpga/2010/9/contents
  • 13. Child Poverty Act targets The Act imposes a legal duty on current and future governments to move towards four UKwide targets by 2020 as follows: • Relative poverty – for less than 10% of children to live in relative low income families. • For the purposes of this target, low income is defined as an equivalised net income below 60% of the UK median. http://www.cpag.org.uk/content/child-povertypromise-and-child-poverty-act
  • 14. Combined low income and material deprivation • For less than 5% of children to live in material deprivation and low income families. • For the purposes of this target, low income is defined as an equivalised net income below 70% of the UK median.
  • 15. Absolute poverty • …for less than 5% of children to live in absolute low income families. • For the purposes of this target, absolute low income is defined as an equivalised net income below 60% of an adjusted base amount, with the base year being 2010/11.
  • 16. Persistent poverty • … for fewer children to live in relative poverty for long periods of time, with the specific target to be set at a later date. • For the purposes of this target, a long period is defined as three years or more
  • 17. Child Poverty duties • The Act also imposes a range of duties on local authorities. They are obliged to undertake a child poverty needs assessment and must co-operate with partner agencies with a view to reducing child poverty. These agencies include: – – – – district councils the police and criminal justice systems transport authorities health authorities http://www.cpag.org.uk/content/child-povertypromise-and-child-poverty-act
  • 18. Current Situation In 2011/12: • 17% of children (2.3 million) were in households in the UK with incomes below 60% of contemporary median net disposable household income before housing costs (BHC), • 27% (3.5 million) after housing costs (AHC).
  • 19. Historical Comparison • Compared to 2010/11, this represents a fall of 0 percentage points (no change in numbers) on a BHC basis and a fall of 0 percentage points (no change in numbers) AHC.
  • 20. Historical Comparison • Compared to 1998/99, this represents a fall of 9 percentage points (1.1million) on a BHC basis and a fall of 7 percentage points (0.9 million) AHC. • Dept for Work and Pensions [online] https://www.gov.uk/government/collections/households-below-average-incomehbai--2
  • 21. Evaluation of Measurement • http://www.youtube.com/watch?v=avJHYeFb o8c • http://www.telegraph.co.uk/news/newsvideo /9856092/Government-child-poverty-targetsunincentivising-work-says-think-tank.html
  • 22. So poverty still exists……  A cultural explanation blames the existence and persistence of poverty on the individual’s culture/behaviour/way of life.  A structural explanation blames the existence and persistence of poverty on wider society, or the government  Also known as:  Also known as: Right-wing explanations ‘Dependency’ explanations  The New Right perspective and the Culture of Poverty theory agrees with this view. Left wing explanations Societal explanations  Marxists, Social Democrats and the ‘cycle of deprivation’ theory all agree with this view.
  • 23. Lewis (1968) – The Culture of Poverty Theory • Studied a poor community in Mexico • Found their way of life was keeping them in poverty • Children were taught different norms and values from mainstream society: – ‘Fatalism’ – acceptance of their situation, rather trying to change it – ‘Immediate gratification’ – spend any money they had immediately – did not save up for the future or stay on at school. • Therefore, poor children grew up to be poor adults, who then brought up the next generation of poor children…
  • 24. The New Right Perspective: Charles Murray (1989) • A political and sociological perspective • Associated with ‘Thatcherism’ from the 1980s • A ‘right wing’ approach: – capitalism is the best way to run the economy – People should be allowed to make as much money as they like – The government should not interfere – ‘Lazy’ people should not be dependent on government benefits!
  • 25. The Marxist View of Poverty • Poverty is caused by capitalism • Poverty is inevitable under capitalism • The bourgeoisie pay the proletariat low wages in order to maximise profit. • The proletariat suffer from false consciousness, thinking their wages are fair and reasonable.
  • 26. The Social Democratic View of Poverty • A political and sociological perspective • Believes capitalism is acceptable with government intervention • Government should provide range of benefits for the poor • The rich should pay high taxes to help the poor • Key sociologist: Frank Field (1989)
  • 27. Field • When Field’s theory was published in late 1980s, New Labour pledged to abolish the poverty trap. • Field’s research focused on citizenship and exclusion and that in recent history certain groups had been excluded from rights that citizens should enjoy • These groups included the long term unemployed, lone parents, pensioners
  • 28. Field was concerned about.. • The increasing gap between rich and poor • The increasing long term unemployed • The stigmatisation and blaming of the poor for their poverty rather than reflecting on wider economic and social factors • His solution to concentrate on a better organised and comprehensive welfare state
  • 29. Policies that resulted… – Tax credits now exist – Sure start provides some free nursery places for 34 year olds etc. etc. etc. • However, Murray would say that Field ignores the fact that there shouldn’t be lone parents in the first place, and that some people just don’t want a job.
  • 30. The Functionalist Explanation of Poverty Herbert Gans (1971) • • Poverty exists and persists because it is functional! Poverty performs 13 functions – some for individuals and some for society Examples: • Poverty creates jobs for the middle classes – police officers, social workers etc. • Poverty helps the economy - out-of-date food, last-season clothes and old cars are all bought by the poor! • Poverty ensures that all jobs are filled in society – the poor will take up dull/dangerous/dirty jobs that no one else wants!
  • 31. The Coalition’s Welfare Reform White Paper published in November 2010: • The current system is too complicated because there are more than 50 different benefits/payment schemes available • Need to reduce the number of people on benefits, especially the long-term unemployed.
  • 32. The Coalition’s Welfare Reform • To reform the benefit system & make “it fairer, more affordable and better able to tackle poverty, worklessness and welfare dependency” the coalition introduced a introduced a new benefit policy called universal credit.
  • 33. Welfare Reform Act 2012 • The benefit cap will see couples and single parents receive no more than £500 a week in benefits. • The limit for single people is £350, although there are some exemptions.
  • 34. Bedroom Tax • Welfare reforms cut the amount of benefit that people can get if they are deemed to have a spare bedroom in their council or housing association home.

Editor's Notes

  1. The 31st G8 summit was held from 6 to 8 July 2005 at the Gleneagles Hotel in Auchterarder, Scotland, United Kingdom and hosted by British Prime MinisterTony Blair.
  2. If poverty can be solved by social policy, why does it still exist???The Labour years – tackling povertyNational Minimum Wage introduced, and increased each year.Tax credits introduced (so that those on low incomes effectively get some of their tax back)Sure Start set up for nursery places/child careWinter fuel payments for the elderly
  3. Quotes from Lewis(1968)“they have a low level of literacy and education”“make very little use of banks, hospitals, department stores, museums or art galleries”“hatred of the police, mistrust of government”Culture of poverty solution - Educate the poor – teach them mainstream norms of values such as hard work, academic success and deferred gratification.All children are taught norms and values at school, so why does poverty still exist?Culture of poverty criticisms - Can this study be applied to modern day UK?How do you measure/study norms and values? – could be a subjective interpretation.Ignores the lack of jobs and lack of education at that time
  4. Not all proletariat are poor – what about footballers, actors and CEOS?Marxists are looking at inequality, not poverty – and they are bound to find inequality in capitalist statesAssumes poverty will disappear under communism – but many communist states have severe povertyIgnores recent policies designed to help the working class - National Minimum wage, tax credits etc
  5. Since Field’s theory was published in late 1980s, New Labour pledged to abolish the poverty trap. Fields research focused on citizenship and exclusion and that in recent history certain groups had been excluded from rights that citizens should enjoy – long term unemployed, lone parents, pensioners, defined by government policies increasing gap between rich and poor and increasing long term unemployed, and stigmatising and blaming poor for their poverty rather than reflecting on wider economic and social factors – his solution to concentrate on a better organised and comprehensive welfare stateTax credits now existSure start provides some free nursery places for 3-4 year oldsMurray would say that Field ignores the fact that there shouldn’t be lone parents in the first place, and that some people just don’t want a job.
  6. Poverty is NOT particularly functional for those experiencing it!Murray would say that the underclass do not help the economy – instead they claim benefits whilst committing crime!