Lesson 11 - Learning Intentions (After this lesson pupils should be able to):

1. Lesson 11 - Learning Intentions • (After this lesson pupils should be able to): • Describe Government support available to reduce wealth inequalities/poverty amongst those groups unable to work. • Groups include children, short-term unemployed, long-term sick/disabled and pensioners. Benefits include: • • Income Support • Employment and Support Allowance (previously known as Incapacity Benefit) • • State Pension / Pension Credit and other benefits • For children: Child Benefit (2010 - £20.30 first child; £13.40 other children; 2007 C.B. extend to 29th week of pregnancy); Working Tax Credit and Child Tax Credit (see earlier notes.) Note: Higher tax earners to lose CB 2013.

2. Reducing Inequalities / Poverty – • Support for those not employed • • Income Support (IS) - For people on low incomes who can’t work for exceptional reasons e.g. those involved in caring. IS is means-tested and those qualifying can access other benefits e.g. Council Tax Benefit. Complexity of IS rules may reduce uptake. Eligibility rules have been tightened and both Council Tax Benefit and Housing Benefit s • Employment Support Allowance (ESA replaced Incapacity Benefit) is paid to long-term sick who cannot work. In 2008, eligibility rules tightened but payments higher. In Oct. 2010, Govt. announced 200,000 people moved off ESA (to JSA) and benefit cut.

3. Reducing Inequalities - Support for those not employed Pensioners • State Pension - Main benefit for elderly (£97.65 pw single person). Paid to most people at 65 years but to rise to 68 years by 2050 (Oct. 2010 change was to raise pension age to 66 by 2020). State pension based on an individual’s NICs but if NICs low, those elderly people do not get full pension (£58.50 in 2010) would be able to claim other benefits including Pension Credit. Pension linked to price rises instead of earnings since 1980 so has become worth less over time. In 2010, the Labour Government restored the link between the State pensionsand average earnings as from 2011.

4. Reducing Inequalities / Poverty – • Support for those not employed • Other Benefits to Pensioners: • • Pension Credit - Guarantees minimum income level for all pensioners (£132.60 per week single person). • • Free TV licence - For all over 75s. • • Winter Fuel Allowance - A one-off payment (£250 or £400) to pay for increased heating costs in winter. • Cold Weather Payments - £25 each week if weather cold for seven consecutive days in winter months • • Free Personal Care - Additional payment to pensioners in Scotland who need help with washing, bed changing, etc. • • Free off-peak travel for pensioners also available in Scotland from Scottish Government

5. Reducing Inequalities - Support for those not employed • So has Government been able to reduce inequalities/poverty amongst those unable to work? • The Government would argue that: • Child poverty and pensioner poverty rates were falling until recent recession (around 2008). • The increase use of means-testing / targeting of benefits is giving the most-deserving children, pensioners, disabled/carers and long-term sick higher benefit levels. • But opponents would argue: • Benefit levels not rising fast enough to reduce inequality. • Ever more complicated means-testing rules results in poor not getting benefit entitlement. • Government will miss targets for halving C.P. by 2010.

6. Government support available to reduce wealth inequalities/poverty amongst those groups unable to work. • Questions • 1. Describe the way in which each of the following benefits aim to reduce wealth inequality / poverty amongst groups unable to work: • Income Support • Employment Support Allowance • • State Pension • • Pension Credit / Other Benefits • 2. To what extent has government been successful in reducing poverty amongst those unable to work? (Give a balanced answer with at least two points for and against). • Reading: ‘Modern UK Social Issues’ pages 30-35.