The Cause of Wealth Inequalities in the UK

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The Cause of Wealth Inequalities in the UK
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Government Policy - Taxation
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Progressive Taxation

• This type of taxation basically means the more
  you earn the more you pay in tax (it progresses).
• Income tax is an example of progressive taxation
  the higher earners make more of a contribution
  through taxation.
• Look at the worked example on textbook Page 13
  (UK Social Issues)

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Regressive Taxation

• This works differently to Progressive Taxation in
  that the more you earn, the less you pay as a
  proportion of your wage. Therefore, the rich
  benefit from this. VAT (currently 20) is a
  standard rate and doesnt rise or fall depending
  on your income so, for example, VAT at 20 on a
  car costing 10,000 will impact more on the
  income of someone earning 15,000 compared to
  someone earning 40,000.

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Benefit Policy - Welfare

• Benefit levels are a political decision and
  fluctuate depending on who is in power and take
  into account increases in earnings and the rate
  of inflation. However, they typically fall below
  these levels.
• Critics of the benefit system in the UK claim it
  tries to camouflage statistics by moving people
  from unemployment benefit to long-term disability
  benefits.

See Next Slide
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Many elderly people are confused by the
complicated Welfare System or reluctant to
provide details worried that they may end up
worse off.
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Unemployment

• The unemployment rate for 16- to 24-year-olds
  rose sharply in 2009, from 15 in 2008 to 19 in
  2009.  However, the rate had already been rising
  for a number of years before the recent
  recession, from 12 in 2004 to 15 in 2008.
• Clearly the recession has had a huge impact on
  unemployment levels. Overall unemployment levels
  are around 7 currently.
• The industries hit hardest by the recession are
  those typically filled by those in the lower
  classes eg manufacturing, retail and
  administration.
• However, the Government also has an impact on
  unemployment as they can offer incentives for
  companies to set up factories. They can also
  close hospitals and services in one area creating
  unemployment and spending money in other areas
  therefore creating employment.

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Education

• Theres clearly a link between qualifications and
  income.

See Next Slide
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Age

• 2/5 of unemployed 50 workers have been
  unemployed for more than a year. This has
  increased by 52 in the last year.
• Unemployment among 50 women has increased by 1/3
  in the last 3 months..
• http//www.ageuk.org.uk/latest-press/50-plus-worke
  rs-trapped-in-long-term-unemployment/

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http//www.statistics.gov.uk/pdfdir/ashe1109.pdf
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Low Pay
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http//www.statistics.gov.uk/pdfdir/ashe1109.pdf
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Social Exclusion
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Who you are
Employment rates of disadvantaged groups, UK,
Oct-Dec 2009
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Gender

• Just how important is this in terms of income
  inequalities?

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Women More Likely to be Lone Parents

• The number of people living in lone parent
  households has quadrupled.

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Gender Lone Parenthood
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Fewer Women are in Employment
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Gender Lower Pay
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Gender Part-Time Work
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Gender Pay Differences By Region
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Job Types

• The further up the employment sector, the more
  its likely to be dominated by men.

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http//www.statistics.gov.uk/downloads/theme_socia
l/Social-Trends40/ST40_2010_FINAL.pdf
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Does Education Help?

• Why is feamle success at school not reflected in
  employment and income?

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Gender Longevity

• Women tend to live longer than men so whilst they
  are more likely to have a lower income and less
  wealth than men, they are going to experience
  this for a longer period of time.
• Life Expectancy in the UK (2010) Men (78) and
  Women (82)

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Glass Ceiling or Reinforced Concrete Ceiling?
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The Glass Ceiling refers to the situation where
an individuals progress within an organisation
is halted due to some form of discrimination. Thi
s is most commonly related to the lack of
progress made by women. Reinforced Concrete
Ceiling is a reasonably new term that suggests
it has become even more difficult for women to
push into the hierarchy of significant
organisations.
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Race
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These statistics are taken from the 2001 Census
so are no longer accurate.

Population Size7.9 from a minority ethnic group
                                                                                                                                                                                                                                            
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• ETHNIC MINORITIES ARE SET TO MAKE UP A FIFTH OF
  THE UK POPULATION IN 40 YEARS, A UNIVERSITY OF
  LEEDS STUDY PREDICTS.
• IT SAYS THE PROPORTION OF BLACK, ASIAN AND OTHER
  ETHNIC MINORITIES WILL RISE FROM 8 OF THE
  POPULATION, AS RECORDED IN THE 2001 CENSUS, TO
  20 BY 2051.
• RESEARCHERS SAY THE POPULATION WILL REACH NEARLY
  78 MILLION - UP FROM 59 MILLION IN 2001.
• ONE OF THE AUTHORS, PROFESSOR PHILIP REES, SAID
  THE UK'S ETHNIC MAKE-UP WAS "EVOLVING
  SIGNIFICANTLY".
• HE SAID "GROUPS OUTSIDE THE WHITE BRITISH
  MAJORITY ARE INCREASING IN SIZE AND SHARE, NOT
  JUST IN THE AREAS OF INITIAL MIGRATION, BUT
  THROUGHOUT THE COUNTRY, AND OUR PROJECTIONS
  SUGGEST THAT THIS TREND IS SET TO CONTINUE
  THROUGH TO 2051.

http//www.bbc.co.uk/news/10607480
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Economic Migrant
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Asylum Seeker
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Race Risk of Poverty

• Ethnic Minorities are far more likely to live in
  low-income households than White people.

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• This is also reflected in terms of the structure
  of the family unit.

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• Pakistanis and Bangladeshis are significantly
  worse off, even compared to other ethnic minority
  groups.

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What factors contribute to this?
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Race Culture

• Within some groups, its quite typical for one
  parent to work, therefore the household income
  decreases significantly.
• Women, culturally, are quite often seen to be
  more effective as carers than earners.

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Race Education

• Ethnic minorities tend to live in or around
  London and certain other pockets of the UK. Inner
  city living is common.
• This may have an impact on schooling as the
  schools they attend are more likely to be lower
  down the School League Table.
• However, it could be cultural as some groups do
  far better than others. Could it be culturally
  acceptable to fail?

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Race Discrimination

• Direct - _at_!!!
• Indirect
• Institutional
• Islamophobia

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Geography Where you live

• There are references to a North/South Divide in
  terms of health and wealth. Scotland, the North
  of England, Wales and Northern Ireland, generally
  speaking having more in common in terms of the
  above, compared to the South of England. However,
  there is evidence that the gap may not be as
  significant as it has been in the past.
• Whilst, its important that you are aware of
  regional variations in terms of wealth (and
  later, health) be careful not to generalise. The
  following demonstrates that within regions and
  even towns there can be significant differences.

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• What conclusion(s) can be drawn from this?

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Areas that would be considered more working
class in their characteristics clearly outweigh
others.
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However, its vital that you dont generalise
whole regions in terms of income inequalities
because that doesnt paint an accurate picture. A
few hundred metres in distance can make a huge
difference.

• of working age population in receipt of out of
  work benefits
• Camelon 28
• Larbert 9.5
• Polmont 6.1
• of 60 who are in receipt of pension credit
• Camelon 26.2
• Larbert - 11.3
• Polmont 9.8