Relative poverty

• What is a bigger issue within the UK?

  Relative poverty
• Why will relative poverty always exist in society?

  Because society is not completely equal
• How is relative poverty defined?

  Income compared to others in the area
• When is someone considered to be in relative poverty?

  If their income falls below average income threshold
• What percentage of median household income defines relative poverty in Britain?

  Less than 60%
• What was the median household income in 2017?

  £27,300
• How many people in the UK live below the official poverty line?

  One in 5 people
• How many people are in relative poverty in the UK?

  14 million people
• What is another way to define relative poverty?

  Inability to afford goods needed by social norms
• What is an example of a good that signifies relative poverty?

  An electric fridge
• What is the poverty line?

  The minimum income for an adequate standard of living
• What does the poverty trap affect?

  People on low incomes
• How does the tax and benefits system create a disincentive for low-income individuals?

  By reducing income when working longer hours
• What may individuals lose by working longer hours?

  Income due to taxes and benefits
• What contributions may individuals lose when working longer hours?

  Income tax and national insurance contributions
• What are the key aspects of relative poverty in the UK?

  • Bigger issue in the UK
  • Defined by income compared to others
  • Less than 60% of median income
  • 14 million people affected
  • Defined by inability to afford basic goods
• What are the implications of the poverty trap?

  • Affects low-income individuals
  • Creates disincentives to work longer hours
  • Loss of income due to taxes and benefits