In Work Poverty

Lesson Objectives I will get the opportunity to develop my

understanding of the extend of in work poverty.

I will be able to explain policies currently offered by the UK Government to assist people in low paid jobs.

I will take part in a debate on the possible solutions to in work poverty.

In work poverty – the evidenceSocial Mobility and Child Poverty Commission

2013 reported that 2/3 of children living in poverty have at least one parent working.

The report said Britain still had "high levels of child poverty and low levels of social mobility.“

It also concluded the UK has a rising number of children in "absolute poverty" coming from working families.

Causes of In Work Poverty

Working in pairs or groups of 3 identify at least 3 causes of in work poverty.

Causes of In Work Poverty

Under employment – research by the Work Foundation shows 10% of employees are underemployed – and zero hour contracts don’t help.

Low Pay – research by the Resolution Foundation shows that in 2009 3.4m people earned less than the Living Wage – today it is 4.8 million.

One earner – due to the high costs of childcare it is often unaffordable for second parent to enter work.

Policies to help workers David Cameron said in 2013 when he announced

Welfare Reform he said, “We're finally going to make work pay – especially for the poorest people in society. And we're going to provide much greater support for unemployed people to find work – and stay in work.”

Income tax threshold £10,000 – 257,000 will pay no income tax at all but according to the Citizen’s Advice the poorest will only be £17 a year pay off.

Tax credits – working tax credit has been frozen for the last three years and child tax credit only increased by £30 in April.

Universal credit – the aim of this benefit is to help people move into work – it is estimated it will help 1.5 million low income households.

The “new” rules Universal credit and tax free childcare – there is a strong link

between child poverty and in work poverty. The Coalition Government are attempting to address this by “tax-

free” childcare; If on Universal credit and earning over £10,000, families will be

entitled to between 70% to 85% of the cost o childcare up to the age of 5 (perhaps rising to 12).

The 85% is only available if you earn over £10,000. For families no ton Universal Credit, help is available if they earn

up to £150,000 - if they do these families will receive up to £1200 (20% of average childcare costs).

Working tax credits – to qualify you will need to work 24 hours per week – not 16 hours (remember 10% of the workforce are underemployed).

And it is harder to get help – previously families would receive help up to £41,000 now it has been cut to £26,000 for one child or £32,000 for two children.

The Guardian Article You have been in Higher for a few months and it is

important to start developing independent note taking skills.

This will help you develop your skills when using the media, that is, reading the Sunday Herald, watching Newsnight and using the Modernity Scotland site.

What should you take notes on?

1. Causes of in work poverty?

2. Other poverty related issues.

3. Government policy on in work poverty.

4. Alternative solutions to reducing in work poverty.

5. Good quotes from political leaders or experts.

Paired Discussion Working in pairs – different from the person you

normally work with – identify at least two solutions to the issue of in work poverty.

Pick one solution and give possible advantages and disadvantages of the solution.

Solution 1 – reducing benefits (Conservative).

Solution 2 – tax breaks for companies to pay the Living Wage (Labour).

Solution 3 – increase the income tax threshold to £12,500 (Liberal Democrats).

Conclusion The issue of in work poverty has increased

dramatically over the last 5 years.

The Coalition Government are attempting to address this by welfare reform and providing help when moving from benefits to paid work via the Universal Credit.

The three main parties offer different solutions to the issue of in work poverty.

In work poverty – this potentially could be an important election issue in 2015.