User:HarryGeorgiou/sandbox

I am going to add more information on poverty reduction to the wikipedia page "poverty in the United Kingdom." This page was lacking information on ways in which poverty can be reduced as well as a summary of what the welfare system is and how that relates to poverty levels and key statistics in order to see the increase or decrease of poverty in the UK.

Welfare Overview
People enter the world of poverty due to: problems at the individual/family level and problems with the economy as a whole. Problems at the individual level include: race (human categorization), gender, sexual orientation, drug use, and level of education. Problems with the economy can include: low labor participation and high levels of unemployment . Welfare is financial support given by the government to people in need. There are pressures on the welfare state because welfare must be justified in terms of its contribution to economic success. Welfare must contribute positively to the economy otherwise there is a risk of damaging currency values. Damage to currency values will damage trading positions and investment which will, in turn, hurt the economy overall. The Department of Health and Social Security (DHSS) is responsible for the welfare services in the United Kingdom. Income maintenance is centrally administered through DHSS offices (regional and local level). Those who earn 39 pounds a week (except some married women) or more must contribute to the National Insurance Scheme. The National Health Service (NHS) provides virtually free healthcare for all residents – this is also centrally administered.

Persistent Poverty and Poverty Statistics
Persistent poverty is the effects of experiencing low income for long periods of time. In 2014, 6.5% of the United Kingdom’s population was classified as being in persistent poverty; that equates to approximately 3.9 million people. The UK’s poverty rate overall in 2014 was the 12th highest amongst all European nations at 16.8%, however; it has the third-lowest persistent poverty rate. Income tends to be measured before or after housing costs are accounted for (BHC or AHC). Poverty levels tend to be higher after housing costs are accounted for because the poorer households need to spend a higher percentage of their income on housing. In 2014-2015, 13.5 million people were in relative low income AHC (an increase of 300,000 from the year before) and 12.9 million people were in absolute low income AHC (a decrease of 700,000 from the year before). Relative low income means that people live in households with income below 60% of the median in a specified year. Absolute income means that people live in households with income below 60% of the median income in some base year. In 2016, the incomes of poor households are extremely sensitive to the activity in the labor market. When any downturn in the labor market occurs, the poorest people in the UK are increasingly more vulnerable and at greater risk. Median income (overall) has moved 2% above pre-crisis (2007-2008) levels. During the recovery period, inequality in workers’ earnings has decreased. There has been strong employment growth along with weak earnings growth which have kept inequality low for several years.

Poverty Reduction Strategies
In 1999, Tony Blair, the former Prime Minister of the United Kingdom, pledged that child poverty in the United Kingdom will end within a generation. The goal was to completely eradicate child poverty by 2020. Poverty is a result of several different factors, some of which include: a lack of education and training, low participation in the labor market, poor working conditions, and affordable housing. The key components of the UK’s strategy to fight poverty are to: increase labor market participation of those eligible to work, to make work more advantageous for those receiving social benefits, to promote financial security for families, and to improve access to public transportation. One of the most crucial ways to reduce poverty is to increase benefit take-ups. In 2009-10 almost a third of those who were eligible for means-tested benefits did not claim their benefits. In 2011-2012, 15% of those eligible for Child Tax Credit did not claim their benefits. Also, 35% of those eligible for Working Tax Credit did not claim their benefits neither. Improving these numbers and getting those people to claim their benefits would significantly help reduce poverty. Ways in which can help increase benefit take-up include: simplifying the language so those who receive the benefits understand what they are receiving, making the process of receiving the benefits easier and more efficient, and encouraging benefit take-up. Other important ways to reduce the levels of poverty include: improve mental health, to ensure that children are supported sufficiently enough so that they can receive a quality education, help the unemployed find jobs, and improving child stability. A decrease in poverty would mean a more active economy because more people would have the ability to purchase more consumer goods than before.