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Government Policies to Tackle Wealth Inequality UK: NATIONAL 5

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Laura Halliday

on 23 November 2017

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Transcript of Government Policies to Tackle Wealth Inequality UK: NATIONAL 5

Main Benefit Changes: Universal Credit
Universal Credi
t was introduced to provide a
single streamlined means-tested benefit
for people of working age that will ensure work pays...

By 2017 Universal Credit will have replaced most means-tested benefits including:

income-based Jobseeker’s Allowance (JSA)
income-related Employment and Support Allowance (ESA)
Income Support
Housing Benefit
Working Tax Credit
Child Tax Credit
The Impact...
Radically simplifying
Incentives to work
What is the potential impact of these policies on poverty and inequality?
Duncan Smith in H of C
Documentary on Conservative Reforms
Concerns about Universal Credit IDS resigns
Blind caller
Cap on housing benefit
Social Cleansing Debate
Living on toast
Youth unemploment
Women and unemployment
Who's Cheating Who?
Tackling poverty
Q3. Govt policies have done little to tackle wealth inequality...

Age/ Gender
Low waged/ Unemployed
Race/ Ethnicity/ Discrimination
Disability/ Ill health
Geographically/Social Excluded
The main changes to benefits: Personal Independence Payment

The reform of Disability Living Allowance has come with the introduction of the
Personal Independence Payment
to meet the needs of
disabled people.

Available to eligible working age people aged 16 to 64

Personal Independence Payment
aims to focus support to those individuals who experience the greatest challenges to remaining independent and leading full, active and independent lives. DLA ended in Oct 2015

Main changes to benefits

Changes to child support system
Child Benefit removed for high earners (one parent earning more than £50,000)
Tax Credits Cut (Plans to abolish)

Plans to extend childcare support in England Wales to 30 hours (currently 15 hours free per week)
In Scotland (currently 16 hours a week)
SNP have vowed to increase to 30 hours after the next election

Changes to the Child Support Agency

Main Changes to Benefits: Reform of ESA

Reform of Employment and Support Allowance to target those in greatest need - now under the banner of Universal Credit

The Main Changes: Benefit Caps
Benefits Cap £26,000 per household
Reduced to £23,000 recently

(Cap on Housing Benefit)
Welfare Reform Act 2012

On 8 March the Welfare Reform Act 2012 received Royal Assent.
According to the Coalition Government, the Act introduced a wide range of reforms to make the benefits and tax credits system fairer and simpler by:

* creating the right incentives to get more people into work by ensuring work always pays

* protecting the most vulnerable in our society

* delivering fairness to those claiming benefit and to the tax payer

tackling fraud

Universal Credit

Benefits Cap
Changes to child benefit
Benefits Changes...
Personal Independence Payment (PIP) is extra money to help you with everyday life if you have an illness, disability or mental health condition.

You can get it on top of other benefits.

Your income, savings, and whether you’re working or not don't affect your eligibility.

The Benefit Cap means there is a limit on the total amount of money from certain benefits you can get if you are of working age.
The Benefit Cap affects those in receipt of Housing Benefit or Universal Credit.
The effect is that Housing Benefit or Universal Credit is reduced. (It normally results in less money towards paying rent.)

If you're getting Housing Benefit, the cap was:

£500 a week if you're a couple - with or without dependent children
£500 a week if you're a lone parent with dependent children
£350 a week if you're a single person without children.

From 7 November 2016, there are different rates for the Benefit Cap - one for Greater London and one for the rest of the country.

If you’re getting Housing Benefit, the cap outside Greater London is:

£384.62 a week if you’re a couple - with or without dependent children
£384.62 a week if you’re a lone parent with dependent children
£257.69 a week if you’re a single person without children

If you're getting Housing Benefit, the cap in Greater London is:

£442.31 a week if you're a couple - with or without dependent children
£442.31 a week if you're a lone parent with dependent children
£296.35 a week if you're a single person without children.

If you don’t receive enough Housing Benefit, the cap won’t be applied in full.
Increasing poverty/ inequality
Causing depression/ mental health problems
Rise of food banks
Benefit sanctioning
Simple but unfair
KU Questions
National 4/5:
Describe 2 benefits provided by the Government to tackle poverty and inequality in the UK
Explain fully 2 ways the Government tries to tackle poverty and inequality in the UK
Describe 2 criticisms of Government policy to tackle wealth inequality in the UK
Describe fully how Government has tackled inequality for two of the groups below:

Extension: 12 mark answer
Analyse the effectiveness of Government policies to tackle poverty and wealth inequality

Recent Changes and Main Criticisms
Group Discussion/ Summary Task

1. Describe the key changes to benefits in recent years...

2. Which groups have been most affected by the changes and why?

3. What are the key criticisms of the recent policies?
Key Changes for Scotland...

The Scottish Government is to set up a new agency to deliver social security payments when new powers are devolved.
Holyrood is to be given control over 11 benefits under the Scotland Bill - including support for carers and those with disabilities.
It will also be given the ability to top-up existing payments and create new benefits.
Social Justice Secretary Alex Neil has led a Holyrood debate on the new welfare powers.
The new devolved benefits, which are said to be worth about £2.7bn every year, include the Carer's Allowance and benefits for the disabled such as the Disability Living Allowance.
Fuel Poverty
What is fuel poverty? (Scotland/UK)
How many people live in fuel poverty? (Scotland/UK)
Who is most likely to face fuel poverty?
What are the effects of fuel poverty?
In Scotland a fuel poor household is defined as one which needs to spend more than 10% of its income on all fuel use and to heat its home to an adequate standard of warmth.
Fuel poverty in England is measured using the Low Income High Costs (LIHC) indicator. Under the LIHC indicator, a household is considered to be fuel poor if:
they have required fuel costs that are above average (the national median level)
were they to spend that amount, they would be left with a residual income below the official poverty line.

In England, an adequate standard of warmth is defined as 21°C in the living room and 18°C in other occupied rooms.
The current definition of fuel poverty states that it is driven by three key factors: energy efficiency of the home; energy costs and household income.

Since 2001, the Government has had a legal duty to set out policies that will, as far as possible, cut out fuel poverty. A variety of schemes and measures have been introduced, but the number of households assessed to be in fuel poverty has not fallen in line with the targets.

Fuel poverty is caused by three factors:
Inadequate heating and insulation
Low incomes
The continued high cost of energy

It is most prevalent among vulnerable households, including:
Those on low incomes
People with children under the age of 16
People with disabilities or suffering from a long-term illness
older people
In England today there are 2.35million households living in fuel poverty. Simply, this means that more than one in ten of all households are pushed into poverty because of the costs of meeting their basic need to keep warm.
In Scotland where the 10% definition is still used 845,000 families are fuel poor
NB. For Elderly benefits see smartboard lesson
Q3. Govt policies have done little to
tackle wealth inequality...
Universal Credit
Wefare Reform Act = Major changes
Benefits Caps
Freeze on payments
Free childcare/ child benefit
Freeze on tax credits/ plans to abolish
Budget 2017 NOv
Exam question:
Explain fully two benefits that the UK Govt provides to those living in poverty (6)
Describe 2 ways that the Govt helps to meet the needs of the disabled (6)
Full transcript