Whilst it is difficult to measure poverty, there are two widely accepted methods;
- Absolute poverty – This is when a person cannot provide for his/her basic needs such as food and shelter. Homeless people suffer from absolute poverty.
- Relative poverty - The government’s official statistics define the poverty level as those earning below 60% of average earnings.
There are other measurements of poverty; such as subjective poverty and environmental poverty, but they are less widely used.
You will need to refresh your knowledge of the poverty cycle. This occurs when those living below the poverty level find it difficult to escape from their circumstances. There are several reasons for this;
- Welfare claimants either lose benefits, or experience a decline in the level of benefits received; when they return to work. They may therefore be worse off if they gain a job.
- Welfare claimants adopt a ‘culture of poverty’ which consists of a set of norms and values that differ to those of mainstream society. This makes it very difficult for them to re-enter the labour market.
- New Right theorists argue that welfare payments undermine personal initiative, thus trapping many people into poverty. As such, the poor become more and more dependent upon the welfare state – and therefore find it very difficult to escape.
The impact of poverty can be hugely significant. This can include a;
- Loss of status and income (if the person was previously in employment).
- A decline in self-esteem.
- A decline in personal health.
- A feeling of social exclusion.
There are also implications for society. For example, a wide gap between rich and poor within society can result in social conflict. |
