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Understanding Poverty Essay

Sandy Ness

Learning Curve group

Access to HE Diploma

Instructor's Name

Date of Submission
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Contents Page

1. Introduction..................................................................................

2. Definitions of Poverty..................................................................

2.1 Absolute Poverty..................................................................

2.2 Relative Poverty....................................................................

3. Measuring Poverty......................................................................

3.1 Historical Perspectives......................................................

3.1.1 Charles Booth (1891-1903)....................................

3.1.2 Seebohm Rowntree (1901)....................................

3.1.3 Peter Townsend (1968)..........................................

3.2 Modern Measures of Poverty............................................

3.2.1 Household Below Average Incomes (HBAI).......

3.2.2 Persistent Poverty.....................................................

3.2.3 Absolute Below Income........................................

4. Indigenous Poverty in Contemporary Britain.........................

5. Sociological Explanations of Poverty......................................

5.1 Feminism..............................................................................

5.2 Structural-Functionalism..................................................

6. Conclusion..................................................................................

7. Recommendations...................................................................

8. Appendices..................................................................................

9. Reference List...........................................................................
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1. Introduction

Millions of people around the world are impacted by poverty, and creating effective solutions

requires an awareness of all of its components. Through an analysis of several definitions,

assessment techniques, and the general level of poverty in modern-day Britain, this essay aims

to explain the complicated nature of poverty. First, we will examine the several definitions of

poverty, emphasizing how it may be interpreted from social and psychological perspectives in

addition to economic ones. The various approaches to measuring poverty will be examined,

taking into account both absolute and relative measures and the effects these approaches have

on perspective and policy will be covered. The essay will then address the poverty level in

modern-day Britain, giving a thorough rundown of recent data and patterns. The demographic

categories most impacted by poverty and the regional differences within the nation will be

clarified.
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2.. Definitions of Poverty

According to the UK government, poverty is the incapacity of a person or family to meet the

basic needs of life. Poverty is typically deined as a condition in whgucg a erson or community

lacks the financial resources and basic necessities to nmeet their needs for a comfortable

statndatd of living. This can include insufficient income to afford food, shelter. Clothing

healthcare education and other essential goods and services. In sociology, two primary

definitions are often discussed: Absolute poverty and Relative poverty.

2.1 Absolute Poverty

Absolute poverty is a condition in which people do not have access to the essentials needed to

survive. A certain income level is frequently used to measure this concept, below which

people cannot afford necessities like clothing, food, shelter, and medical care. For instance,

living on less than $1.90 a day is considered absolute poverty according to the World Bank.

This metric, which is used to identify those who are having difficulty meeting the bare

necessities of life, is constant across nations.

The most vivid examples of absolute poverty are frequently found in developing countries,

where families constantly battle to pay for necessities. Numerous patterns result from the

effects of this type of poverty, such as a general lack of opportunity for social mobility and

limited access to healthcare and education.

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Source: DWP, Households Below Average Income, 2022/23

14% of people in the UK were in absolute low income before housing costs in 2022/23, and

18% were in absolute low income (absolute poverty) after housing costs.
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2.2 Relative Poverty

Conversely, relative poverty is determined by the total distribution of wealth or income in a

community. It is defined as having an income below the required amount to enjoy a

minimum standard of living. ( brown,n.d). If a person or group's level of living is much lower

than what is typical for their community, they are deemed impoverished. Social inclusion and

the capacity to engage in traditional activities and lifestyles are highlighted in this concept.

Consider a family in an economically secure country where the average annual household

income is $60,000. This family would be regarded as being in relative poverty if their annual

income was merely $25,000. Their income is much below the median, so even though they

may make enough to cover basic needs like food and housing, they might find it difficult to

pay for other aspects of a typical lifestyle in their community, like access to social activities,

high-quality healthcare, and education. Compared to the typical home in their community, this

difference may result in social marginalization and a lower standard of living.

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Source: DWP, Households Below Average Income, 2022/23.

Department for Work and Pensions (DWP) data shows that around one in six people in the UK were in

relative low income (relative poverty) before housing costs in 2022/23. This rises to just over one in

five people once housing costs are accounted for.

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3. Measuring Poverty

Understanding the level of poverty and carrying out successful policy solutions require an

understanding of how it is measured. The theoretical history of poverty evaluations, from

historical frameworks to contemporary approaches, highlights social and economic changes.

Poverty can be measured in the UK in two primary ways:

The poverty line in the UK is determined exclusively by income and housing expenses.

The official poverty line is 60% of the median income of the UK. The median means the

middle income – so, if you lined up everybody in the UK based on their income, the median

would be the person in the very middle. If you earn less than 60% of what this person does,

you’re in poverty. London, A.T. for (no date) What is poverty?, Trust for London.

Available at: https://trustforlondon.org.uk/news/what-is-poverty/ (Accessed: 23

February 2025).
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Other unavoidable expenses, such as childcare, are included in the Social Metric

Commission's poverty metric. A new poverty metric that considers these additional

characteristics was created by the Social Metrics Commission (SMC). This is significant

because it will include those who may be overlooked by the official poverty threshold yet are

forced into poverty due to unforeseen expenses like childcare. The chart shows the

Households Below Average Income, Department for Work and Pensions.

Poverty across London (no date) Trust for London. Available at

https://trustforlondon.org.uk/data/poverty-across-london/ (Accessed: 23 February

2025).
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These results show three-year averages to the stated date. Please note that data for 2020/21

have been excluded from analysis due to concerns with bias in the sample. Low income

households are those with 60% or less of the median income for that year.

Figure shows poverty rates for the uk population 2022/2023

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3.1 Historical Perspectives

People who have lived in poverty for three or more of the previous four years are considered

to be in persistent poverty. This statistic shows how poverty affects some people and families

over an extended period of time.

Figure 10: Other measures of persistent low-income are broadly comparable

Comparisons of persistent relative low income using different data sources.

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3.1.1 Charles Booth (1891-1903)

Charles Booth's pioneering work in documenting the living conditions of London’s poor laid

the foundation for modern poverty studies. His differentiated classifications of poverty

showcased a spectrum from the "poor but respectable" to the "casual laborers" and those

existing below subsistence levels. By utilizing color-coded maps, he was able to present a

visual representation of poverty across different London neighborhoods (Booth, 1891).

Booth's focus on the geographical spread of poverty shed light on the substantial role that

environmental factors played in creating the socioeconomic difference. His approach

emphasized the need to understand poverty as an underlying issue with deep roots in urban

industrialization, rather than just as an individual shortcoming.

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Descriptive map of London Poverty Maps C.21.a.18.(295). SE sheet. British Library

He made the decision to learn the truth in 1886. Booth spent weeks at a time living with

working-class families as part of his studies. It showed that up to one-third of Londoners lived

in poverty, demonstrating that the amount of need was significantly worse than previously

believed. He considered a wide range of topics, including as police, religion, workhouses,

wages, education, and working conditions. He described the numerous contented children he

encountered who were not surrounded by the swarms of servants, nurses, and governesses that

dominated the lives of the more privileged children. Nonetheless, he acknowledged that many

poor households lived in never-ending terror and that illness, starvation, and even death were

frequent threats.( 2017, May 7). British Library.

https://www.britishlibrary.cn/en/articles/charles-

3.1.2 Seebohm Rowntree (1901)

Seebohm Rowntree’s methodological rigor in his study of poverty in York further advanced

the understanding of the socio-economic landscape. He distinguished between primary

poverty where individuals could not afford basic needs and secondary poverty where

individuals earned enough but faced other systemic barriers (Rowntree, 1901).

By promoting a more structural and systemic understanding of poverty, Rowntree's writings

countered Victorian ideas of personal failings. He established the foundation for the Welfare

State by emphasizing the value of social programs that try to reduce secondary poverty by

creating jobs and providing economic support.

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An illustration of Benjamin Seebohm Rowntree's 'poverty line' - as used in his lecture

tours [Rowntree Archive].

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3.1.3 Peter Townsend (1968)

Peter Townsend, in contrast to Booth and Rowntree, developed the concept of relative

deprivation, stating that poverty should be interpreted in light of social norms and the

standards of living expected in a given community (Townsend, 1979). His writings offered a

crucial foundation for current research examining the relationship between financial riches,

social inclusion, and human dignity.

Townsend's focus on social exclusion contributed to the development of contemporary

methods for measuring poverty and emphasized the significance of tackling the various

aspects of poverty, including psychological effects, disenfranchisement, and isolation.

Peter Townsend 1928-2009 Publication date 1979 Topics Poor -- Great Britain, Great

Britain -- Economic conditions, Great Britain -- Social conditions. Publisher Berkeley:

University of California Press.

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3.2 Modern Measures of Poverty

Today, poverty measurement incorporates diverse methods that reflect its complexities. In the

UK, poverty is measured in two main ways: The UK poverty line – based solely on incomes

and housing costs. The Social Metric Commission's poverty measure – includes other

unavoidable costs, such as childcare.

The official poverty line is 60% of the median income of the UK. The median means the
middle income – so, if you lined up everybody in the UK based on their income, the median
would be the person in the very middle. If you earn less than 60% of what this person does,
you’re in poverty. The graphic below illustrates how this works.

3.2.1 Household Below Average Incomes (HBAI)

One important metric for evaluating poverty and income inequality in the UK is the

Household Below Average Income (HBAI) measure. It concentrates on households whose

earnings fall below a predetermined level, usually 60% of the median household income. The
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chart shows the Median Household Income - Decrease to £621 (BHC) and £545 (AHC) in

FYE 2023

Figure 1: Median Weekly Household Income, FYE 2003 to FYE 2023

Between FYE 2022 and FYE 2023, average (median) household net equivalized disposable

income slightly decreased in real terms (i.e. taking account of inflation). The decrease was

greater for incomes after housing costs. Weekly FYE 2023 household incomes are estimated

at £621 (BHC) and £545 (AHC) respectively, the same as measured in FYE 2021.

3.2.2 Persistent Poverty

Persistent poverty measures individuals who remain below the official poverty line for an

extended period, typically over three years. Insights into the underlying socioeconomic

systems that sustain cycles of deprivation are provided by such a statistic, which also helps

shape policies meant to alleviate sustained poverty trap problems. About 8–9% of people in

Britain live in persistent poverty, which suggests that a sizable fraction of the population is

disadvantaged over the long run (Department for Work and Pensions, 2021).
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3.2.3 Absolute Below Income

Absolute poverty measures establish income thresholds below which households cannot meet

their basic living requirements. These metrics are essential for ensuring minimal living

standards and assessing the sufficiency of welfare assistance. Importantly, this measure can

be used as a measure to assess socioeconomic efforts and focus resources and assistance

where they are most needed.

Diagram below shows the Percentage of households, working-age people, children, and

pensioners in relative and absolute low income, before and after housing costs, in 2017/18, by

rural and urban areas in England

The percentage of households in rural areas with absolute low income was 12% before

housing costs and 14% after housing costs, while in urban areas it was 14% before housing

costs and 19% after housing costs. Working-age people in rural areas had 11% before housing

costs and 14% after housing costs, while children in urban areas had 13% before housing

costs and 19% after housing costs. Pensioners in rural areas had 14% before housing costs and

11% after housing costs, while in urban areas it was 14% before housing costs and 13% after.
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4. Indigenous Poverty in Contemporary Britain

Poverty is common in the UK, where millions of families are facing financial difficulties as a

result of more than ten years of cuts. As low-income households are particularly impacted by

the cost of living problem, many more are being forced below the breadline.

4.1 Current Statistics and Implications

According to official government statistics, 14.4 million individuals in the UK were living

below the poverty line in 2021–2022. That's around one out of five. 4.2 million youngsters

were impacted in all. Alarmingly, children bear the brunt of this crisis, with approximately

one in three children living in relative poverty.

UK poverty rate since 1994/1995

Source: Department of Works and Pension

The overall UK poverty rate has stayed much the same over the last 28 years, with a slight dip

during the pandemic. By comparison, the poverty rate for pensioners has dropped. Child

poverty rates are especially high in the UK.

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The implications are extensive; children raised in poverty exhibit higher rates of educational

underachievement and poor health outcomes, which hamper social mobility and perpetuate a

cycle of poverty (Child Poverty Action Group, 2021).

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4.2 Regional Disparities and Economic Context

Poverty in the UK is not distributed uniformly. Geographic disparities showcase stark

contrasts between regions. Northern England experiences higher rates of poverty compared to

its Southern counterparts, often attributed to variations in economic opportunities, industrial

decline, and differing access to public services.

For instance, the North East of England demonstrates a particularly high level of deprivation,

where figures indicate poverty levels around 24% compared to London’s roughly 16%

(Institute for Fiscal Studies, 2021). Such regional inequalities demand policy responses that

are tailored to specific local needs, rather than a one-size-fits-all approach.

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5. Sociological Explanations of Poverty

Sociology offers a useful framework for considering poverty. We can gain a deeper

understanding of social issues and problems by "thinking sociologically." It enables us to

view personal struggles as a component of society's political and economic structures and to

critically examine matters that could otherwise be misunderstood or exaggerated. Myths and

misconceptions about poverty exist in both public and political discussion. When attempting

to separate poverty from a number of related ideas and generally negative conversations about

many social issues, sociological thinking might be useful. Emilie Durkheim argued that social

disparities are crucial for society's well-being, and the political and social agenda aimed to

hold individuals accountable for their struggles. The focus was on the "undeserving poor,"

who were criticized for personal flaws like boredom, lack of intelligence, moral deficiencies,

or carelessness. (Shildrick and Rucell, 2015). Although these opinions have diminished, they

remain relevant today.

5.1 Feminism

According to feminist views, women in low-paying occupations and single mothers are

pushed into poverty by the UK's 15% gender pay gap, which disproportionately affects

economic marginalization. Due to their vulnerability, women are over-represented in part-

time and unstable jobs. Women's access to lower-wage groups and paid jobs is further

restricted by unpaid labor, such as household chores. In addition to restricting women's

access to important professional training and career advancement chances, societal norms

surrounding caregiving and family responsibilities also contribute to the continuation of

poverty cycles.
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5.2 Structural-Functionalism

According to structural-functionalist viewpoints, poverty is an undesirable but necessary

feature of society that promotes social mobility and lower-level jobs. This viewpoint,

however, might normalize poverty and hide the systemic inequalities that contribute to it.

Because it emphasizes the dependence of social functions and the necessity of various

socioeconomic groupings, critics contend that this viewpoint may mistakenly reinforce class

differences and deflect attention from the pressing need to address the root causes of poverty.

The question of who controls resources and how they are distributed is essential in

understanding persistent poverty within the context of this theory. Conflict Theory, which has

its roots in Marxist thought, on the other hand, views poverty as an outcome of the capitalist

system that thrives on class disparities and exploitation. According to this perspective, the

upper class maintains control over resources, while the working class is left to navigate a

system designed to keep them in subservience (Marx, 1867). This lens critiques how

economic policies and social institutions prioritize acquiring wealth for a few, frequently at

the expense of the many.

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6. Conclusion

Poverty is still a widespread problem with numerous aspects and complications. We can gain

a better knowledge of the systemic causes of poverty by investigating its definitions, historical

and modern measurements, and sociological ideas. Because of the way that economic

systems, social norms, and inequality interact, there is an urgent need for comprehensive

policy interventions that are responsive to and representative of the various demands of

communities.

As the world's problems become more linked, the knowledge presented in this study serves as

a foundation for further investigation and action. In addition to only economic expansion is

needed for addressing poverty; fairness in society, equity, and an appreciation of the inherent

value of everyone are also essential.

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7. Recommendations

- **Integrated Policy Approaches**: Develop policies that address both economic disparities

and social injustices, focusing on marginalized communities suffering from systemic

disadvantage.

- **Enhanced Support Systems**: Strengthen welfare programs and services aimed at low-

income families, particularly providing tailored support for women and children, who

disproportionately fall into poverty.

- **Public Awareness Campaigns**: Launch education campaigns to raise awareness about

poverty's complexities and foster community solidarity, aiming to diminish societal stigma

and promote mutual support.

- **Data-Driven Solutions**: Encourage ongoing research to inform evidence-based policy-

making that directly addresses the changing dynamics of poverty and focuses on innovative

solutions tailored to local contexts.

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8. Appendices

(Here, include relevant diagrams, tables, or supplementary materials that illustrate or

elaborate on the topics discussed. Ensure these are referenced appropriately within the report

body.)
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9. Reference List

- Booth, C. (1891). *Life and Labour of the People in London.* London: Macmillan.

- Child Poverty Action Group (2021). *Child Poverty in the UK.* London: CPAG.

- Department for Work and Pensions (2020). *Households Below Average Income (HBAI)

Statistics.* London: DWP.

- Department for Work and Pensions (2021). *UK Poverty 2021.* London: DWP.

- Institute for Fiscal Studies (2021). *The IFS Green Budget 2021.* London: IFS.

- Marx, K. (1867). *Capital: Critique of Political Economy, Volume I.* Hamburg: Otto

Meissner Verlag.

- Office for National Statistics (2021). *Gender pay gap in the UK: 2021.* London: ONS.

- Rowntree, S. (1901). *Poverty: A Study of Town Life.* London: Secker & Warburg.

- Smith, J. (2021). *Relative Poverty and Social Inclusion in the UK.* Journal of Social

Policy, 50(2): 303-320.

- Townsend, P. (1979). *Poverty in the United Kingdom.* Harmondsworth: Penguin.

- Williams, R. (2020). *Defining Absolute Poverty: Measurements and Implications.*

Economic Review, 75(4): 22-38.

- World Bank (2021). *Poverty and Shared Prosperity 2021: Reversals of Fortune.*

Washington D.C.: World Bank.

https://researchbriefings.files.parliament.uk/documents/SN07096/SN07096.pdf
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https://commonslibrary.parliament.uk/research-briefings/sn07096/

Internet Archive. (2020). Poverty in the United Kingdom : a survey of household resources

and standards of living : Townsend, Peter, 1928-2009 : Free Download, Borrow, and

Streaming : Internet Archive. [online] Available at:

https://archive.org/details/povertyinunitedk0000town/page/n5/mode/2up [Accessed 19 Feb.

2025].

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