What policies are the UK government implementing to tackle relative poverty?

The UK government is implementing policies such as increasing minimum wage, improving education, and providing social security benefits to tackle relative poverty.

The UK government has been proactive in implementing policies to address relative poverty, which is defined as households earning less than 60% of the median income. One of the key strategies is increasing the National Living Wage (NLW). The NLW, which is the minimum wage for workers aged 23 and over, was increased to £8.91 per hour in April 2021. This policy aims to ensure that low-income workers have a wage that meets the cost of living, thereby reducing the risk of relative poverty.

Another significant policy is the improvement of education and skills training. The government has introduced the National Skills Fund, a £2.5 billion package to help adults gain the valuable skills they need to improve their job prospects. This policy is based on the understanding that education and skills are key to improving income and reducing poverty. By providing opportunities for adults to retrain and upskill, the government aims to increase their employability and income potential, thus reducing the risk of relative poverty.

The UK government also provides social security benefits to support those on low incomes. These include Universal Credit, a payment to help with living costs for those on a low income or out of work, and Housing Benefit, which helps with rent payments. The government has also introduced the Benefit Cap, which limits the total amount of benefits a household can receive. These benefits are designed to provide a safety net for those at risk of falling into relative poverty.

Furthermore, the government has implemented policies to support families with children, as they are particularly at risk of relative poverty. These include Child Benefit, a payment to parents or guardians of children under 16 (or under 20 if they are in approved education or training), and free school meals for children from low-income families. By providing financial support to families, these policies aim to reduce the risk of children growing up in relative poverty.

In summary, the UK government is implementing a range of policies to tackle relative poverty, focusing on increasing wages, improving education and skills, and providing social security benefits.