An Introduction

In this essay, I will discuss how different theories explain what causes poverty, the issues with the welfare state and how they can be resolved and how studies have supported the arguements of each theory.

Oxford dictionaries define poverty as ‘the state of being extremely poor’ (oxforddictionaires, 2012). However, there is a lot more to be said about those living in poverty than just being ‘extremely poor’. This essay will provide an explanation from the point of view of three contrasting theories as to the causes and solutions to poverty today.

Social policy refers to the guidelines, principles and legislation that affect the living conditions conducive to human welfare (encyclo, 2012).

Poverty can be split in to two categories: relative poverty and absolute poverty. Absolute poverty describes the severe deprivation of basic human needs such as food, safe drinking water, sanitation facilities and shelter. Relative poverty, however, refers to people who think they live in poverty in comparison to other people as they do not have what they have. An example of this may be an individual feeling they are living in poverty as they cannot afford to go abroad for a holiday whereas their neighbours can.

William Beveridge, in 1942, wrote a ‘Report on Social Insurance and Allied Services’. This report created much public interest after the war and the poverty that entailed. The public, during the war, thrived on the help the government provided through rationing and felt that the government should continue to help those in need. Beveridge’s report influenced Labour’s 1945 reform, and Beveridge stressed that all people in work should pay a single weekly contribution to the state in which they live in order to fund welfare which should be given to them in times of need such as ill-health and unemployment. (bbc,2012). Beveridge claimed that there were ‘five giant evils’ which needed to be tackled in order to eliminate poverty. These were as follows: ‘want’, the idea that all in society should be provided with the basic living conditions. In order to solve this, Labour created the National Insurance Act, which provided sickness and unemployment benefit. The Industries Act make compensation for work related injury compulsory and The Insurance Act provided benefits for those who were not covered by the National Insurance Act previously. ‘Disease’ focused on eliminating major illnesses that were linked to financial trouble through the inability to work. Labour answered with the creation of the National Health Service Act which meant all citizens could enjoy medical, dental and optical services all free of charges. However, soon after charges for spectacles and dental treatment returned. The issue of ‘squalor’- poverty having a knock-on effect on illness and employment - was also addressed by Labour. The New Towns Act resulted in the construction of fourteen new towns across Britain. However, huge housing shortages still existed. ‘Ignorance’, another of Beveridge’s five giants, aimed to tackle poor education within Britain. The Education Act made secondary education, up until the age of fifteen years, compulsory using the eleven plus exam. This was beneficial to those children who would have not previously had the chance to attend secondary school. The final of the five giants, ‘idleness’, aimed to tackle the large problem of unemployment. The Labour government took control of more industries such as steal and iron manufacture as they could use tax money to keep these afloat in difficult economic times (bbc, 2012).

Within society, people have basic needs which must be met in order for people to be living above the poverty line. These needs can be divided in to four categories; normative needs and comparative needs. Normative needs refer to those which are identified according to a norm which are generally set by experts. An example of this is benefit levels or the standards of housing in which people are living. Comparative needs, on the other hand, emerge from the comparison to those who are not in need. This can be used to determine which areas of a country are most deprived (Spicker.P, 2012). Felt need is expressed from the perspective of those who have it. Expressed need, however, is a need which people say they have. People can however, feel a need which they do not express and can express a need which they do not feel.