Strategies to Deal with Inequalities in Wealth

1. Strategies to Deal with Inequalities in Wealth

2. Increasing levels of Employment and helping those on a low income

3. Why? Labour Government in 1997 wanted to create chances for those people who’d become excluded from: • Work • Education • Health • Their Community Getting them back to work would also reduce the benefits they had to provide.

4. Jobcentre PlusThe New DealNational Minimum wageWorking tax CreditChild Tax CreditModern ApprenticeshipsSkillseekers

5. Jobcentre Plus Run by the Department for Work and Pensions. Helps people get back into employment and claim the benefits they are entitled to. An office found in most towns and cities.

6. The New Deal New Deal is a government programme that aims to give unemployed people the help and support they need to get into work. When you join you are given: • Training • Advice for job interviews and applications • A personal adviser

7. Types of New Deal: The New Deal for Young People The New Deal 25 Plus The New Deal 50 Plus The New Deal for Lone Parents The New Deal for Disabled People

8. Working Tax Credit This is a tax adjustment. It reduces the amount of tax taken from low-paid workers. By doing this, it increases the gap between those on benefits and those in employment (Benefit Trap). You can also reduce the cost of childcare through this scheme - the Government will pay up to a maximum of £175 for one child and £300 per week for two or more. The less you earn, the more you get, up to a maximum of 80% of childcare costs.

9. National Minimum Wage Introduced to set a base rate of pay for low-income employees Rates from 1 October 2010 • From 1 October 2010 new rates and age bands will apply. • £5.93 - the rate for workers aged 21 and over • £4.92 - the 18-20 rate • £3.64 - the 16-17 rate • new minimum wage of £2.50 per hour for apprentices who are either under 19 or in the first year of their apprenticeship • It was hoped this would act as an incentive to get people back into work – their wages would be higher than what they’d get on benefits (hopefully).

10. In line with inflation and housing costs? Not according to Joseph Rowntree Foundation. They feel this amount is too low and hourly earnings need to be at a minimum of £7.

11. Child Tax Credit Nine out of ten families with children are eligible for tax credits. Tax credits are payments from the government. If you're responsible for at least one child or young person who normally lives with you, you may qualify for Child Tax Credit. If you work, but are on a low income, you may qualify for Working Tax Credit. • Example 1 • Mr and Mrs Khan both work full-time. Between them, they earn about £25,000 a year. They have three children. They get about £92 a week in tax credits. • If their income was higher, and they earned about £50,000 a year, they’d get about £10 a week instead. • Example 2 • Jon Barry is aged 30, not married and lives alone. He works full-time and earns £10,000 a year. He gets about £25 a week in tax credits.

12. Modern Apprenticeships Targeted at 16-24 year olds Work-based training Qualification (often gained through further education eg college)

13. Skillseekers People between 16 and 24 are given the opportunity to work towards vocational qualifications (VQs) ‘while on the job’ Employers are given money to ‘employ’ young people and give them the necessary training Minimum wage of £50 per week

14. Pension Credit For those aged 60+. This can be provided in addition to the State Retirement Pension if an individual or couple have no other sources of income eg occupational pension. Top up an individual to £132.60 weekly. Top up a couple to £202.40 weekly.

15. Winter Fuel Payment This payment can range from £125 to £400 depending on circumstances. This is a one-off payment to help cover the increasing cost of fuel bills.

16. Cold Weather Payment A payment of £25 when the recorded temperature is below zero degrees Celsius for 7 consecutive days.

17. Addressing Gender (Income) Inequalities

18. Equal Pay Act 1970 Under law both men and women are entitled to equal pay. In addition to basic salary or wages, pay is also deemed to include contractual benefits, such as pension contributions and bonuses. The Equal Pay Act is part of employment law and should be treated as separate from general discrimination law. Does this seem to be working?

19. Sex Discrimination Act 1975 The Sexual Discrimination Act of 1975 was introduced to protect individuals from discrimination on the grounds of sex. • Direct • Indirect • Verbal harassment • Non-verbal harassment • Physical harassment • Victimisation Refer to Video Clip http://www.inbrief.co.uk/sex-discrimination-act.htm

20. Equality Act 2010 Will combine all previous pieces of anti-discrimination law that have been introduced through the years. This will be ‘the’ anti-discrimination legislation. It makes it possible for the government to expect all employers with more than 250 staff to report their gender pay gap from 2013. Public bodies with more than 150 employees will also be required to report on gender pay as well as other equality data, including the number of black, Asian and minority ethnic workers, by April 2011 http://business.timesonline.co.uk/tol/business/law/article7096707.ece http://www.equalities.gov.uk/pdf/401727_GEO_EqualityLaw_Rights_acc.pdf

21. Equality Act 2010 This will also include an element of ‘positive action’ (positive discrimination) in an attempt to address the race and gender inequalities that currently exist. http://news.bbc.co.uk/1/hi/7474801.stm

22. Equality and Human Rights Commission (EHRC) • Responsible for enforcing the law • Helps to build better relations • According to the EHRC, there are 6 strands of discrimination: Gender, Race, Disability, Age, Faith and Sexual Orientation. • Has the power to enforce equality legislation. In the past, people had to go to different organisations to report discrimination and could only claim they’d been discriminated against based on one of the six above. Now they can claim to be treated unfairly due to more than one of the above. http://www.equalityhumanrights.com/about-us/vision-and-mission/

23. Child Support Agency The Child Support Agency (CSA) is part of the Child Maintenance and Enforcement Commission. Their role is to make sure that parents who live apart from their children contribute financially to their upkeep by paying child maintenance. Women are far more likely to benefit from this than men. Why? http://www.csa.gov.uk/

24. Addressing Race (Income) Inequalities http://www.youtube.com/watch?v=Y65ZpN-AV3c

25. Race Relations Act 1965 and 1976 The First Race Relations Act was criticised for being too weak as it didn’t go far enough. It made it illegal to discriminate on the grounds of colour, race, ethnic or national origins. However, it didn’t cover this in relation to housing or employment and it wasn’t a criminal offence – it was civil! The 1976 Act did take it further and make it illegal to discriminate in relation to education, employment and housing. http://news.bbc.co.uk/onthisday/hi/dates/stories/december/8/newsid_4457000/4457112.stm

26. Race Relations (Amendment) Act 2000 Introduced in light of McPherson Report – Stephen Lawrence (Institutional Discrimination) Public authorities eg NHS were encouraged to address racial imbalance in workforce

27. Equality and Human Rights Commission (EHRC) • Responsible for enforcing the law • Helps to build better relations • According to the EHRC, there are 6 strands of discrimination: Gender, Race, Disability, Age, Faith and Sexual Orientation. • Has the power to enforce equality legislation. In the past, people had to go to different organisations to report discrimination and could only claim they’d been discriminated against based on one of the six above. Now they can claim to be treated unfairly due to more than one of the above. http://www.equalityhumanrights.com/about-us/vision-and-mission/

28. Equality Act 2010 Will combine all previous pieces of anti-discrimination law that have been introduced through the years. This will be ‘the’ anti-discrimination legislation. It makes it possible for the government to expect all employers with more than 250 staff to report their gender pay gap from 2013. Public bodies with more than 150 employees will also be required to report on gender pay as well as other equality data, including the number of black, Asian and minority ethnic workers, by April 2011 http://business.timesonline.co.uk/tol/business/law/article7096707.ece http://www.equalities.gov.uk/pdf/401727_GEO_EqualityLaw_Rights_acc.pdf

29. The One Scotland Campaign This is the Scottish Government’s campaign aimed at tackling racism. It tries to show the contribution that all cultures have made to Scottish society. This campaign initiated ‘Show Racism the Red Card’