Income and Wealth
- Income is a flow of factor incomes such as wages and earnings from work; rent from the ownership of land and interest & dividends from savings and the ownership of shares
- Wealth is a stock of financial and real assets such as property, savings in bank and building society accounts, ownership of land and rights to private pensions, equities, bonds etc
Types of Poverty
Relative poverty measures the extent to which a household’s financial resources falls below an average income level.
- Although living standards and real incomes have grown because of higher employment and sustained economic growth, there is little doubt that Britain has become a more unequal society over the last 20-25 years.
Absolute poverty measures the number of people living below a certain income threshold or the number of households unable to afford certain basic goods and services.
- What we choose to include in a basic acceptable standard of living is naturally open to discussion.
Types of income
- Disposbale income: how income is shared out between households in a country.
- Real disposbale income: income after taxes on income have been deducted and state benefits have beeen added and the result has beeen adjusted to take into account changes in the price level.
- The introduction of a National Minimum wage and a series of increases in its value
- Tax Credits to boost work incentives for low-income households who choose to work
- Minimum Income Guarantees for Pensioners and increases in the real value of Winter Fuel Payments.
- Active employment policies for young people, the long-term unemployed, lone parents and disabled people – a long-term strategy designed to increase employment opportunities
- Increased spending on training
- Increased spending on early-years education