Absolute poverty and its measurement

Absolute poverty refers to a condition where individuals lack the basic necessities required for survival, such as food, shelter, and warmth. This definition focuses on a fixed standard of minimum needs, regardless of societal context or comparisons with others.

Key features of absolute poverty

• Basic necessities - Individuals cannot afford essentials like food, clothing, and a safe place to live.
• Historical studies - Early research by Rowntree (1871-1954) in 1899 assessed poverty in the UK by creating a list of essential items needed for life. Families unable to afford these were classified as poor, revealing widespread deprivation in York.
• Criticisms of early approaches - Rowntree's method assumed no food waste and constant availability of the cheapest options, which did not reflect real-life conditions. Later studies in 1941 and 1951 expanded the list of essentials, showing a decline in poverty as more could afford basics.
• Level of living index - Drewnowski and Scott (1966) developed a measure including not just physical needs but also cultural requirements, though some debate whether items like television belong in an absolute poverty framework.

This approach assumes uniform needs across all individuals, ignoring variations due to age, gender, or occupation.

Relative poverty and the concept of relative deprivation

Relative poverty defines deprivation by comparing an individual's standard of living to the average within their society, rather than focusing on basic survival needs. This perspective highlights inequalities and social context.

Characteristics of relative poverty

• Comparative nature - Poverty is determined by how one's resources stack up against others in the same community, not just by a lack of essentials.
• Persistent inequality - As long as disparities exist, some will always be classified as poor under this definition, even if their absolute conditions improve.
• Impact of wealth distribution - If the wealthy increase their income faster than the less well-off, relative poverty can grow despite improvements in living standards for the poor.

Townsend's deprivation index (1979)

• Method - Townsend created a list of 60 items considered central to life in the UK, narrowing it down to 12 deemed essential for all, such as owning a refrigerator or hosting social meals.
• Scoring system - Households were scored based on lacking these key items, with deprivation increasing sharply below a threshold of approximately 150% of the 1979 basic supplementary benefit level (now income support).
• Findings - Around 23% of the population were identified as living in relative poverty.
• Criticisms - Critics like Piauchaud (1987) and Wedderburn argued the index was subjective and culturally biased, with items like cooked breakfasts reflecting personal rather than societal norms, and lacking research into typical behaviours.

Budget standard and consensual approaches to measuring poverty

Alternative methods to measure poverty include the budget standard approach, focusing on adequate income levels, and the consensual approach, which incorporates societal views on necessities.

Bradshaw's budget standard measure (1990)

• Method - Bradshaw studied spending patterns of the least wealthy to define an adequate budget. Those earning below this were considered poor.
• Difference from absolute poverty - Unlike Rowntree's assumptions about costs of essentials, Bradshaw based his measure on actual expenditure behaviours.
• Advantages - Provides clear, comparable statistics since it avoids relative comparisons.
• Criticisms - Some argue the budget threshold was set too low, underestimating true deprivation levels in society.

Mack and Lansley's consensual approach (1985)

• Method - A survey identified necessities by asking the public what they deemed essential, including items agreed upon by over 50% of respondents, resulting in a list of 22 items.
• Assessment of deprivation - Households were surveyed on whether they had items, didn't want them, or wanted but couldn't afford them. Only the latter counted as deprived, focusing on involuntary lack.
• Threshold for poverty - Lacking three or more necessities classified a household as poor.
• Findings - In 1983, 14% of the British population were in poverty; this rose to 21% by 1990, and a 2012 Poverty and Social Exclusion (PSE) report indicated 33% were affected.
• Challenges - The list of necessities evolves (e.g., telephones became essential by 1990), making direct comparisons over time difficult.

Subjective poverty and personal perceptions

Subjective poverty centres on individuals' own assessments of their financial situation and whether they feel deprived based on their expectations and needs.

Defining subjective poverty

• Personal evaluation - Focuses on how people perceive their economic state, asking questions like what income they believe is needed to avoid poverty and how their household compares to that level.
• Comparison with other measures - The Poverty and Social Exclusion Survey (2000) found that the proportion of people feeling poor aligned closely with consensual poverty figures, though not always identifying the same individuals.
• Strengths - Offers insight into lived experiences and personal standards, providing a complementary perspective to more objective measures.

Social exclusion and its broader implications

Social exclusion extends beyond financial hardship, encompassing a wider inability to engage in societal activities and access services, often trapping individuals in cycles of disadvantage.

Understanding social exclusion

• Multidimensional deprivation - Involves barriers to participation in economic, social, cultural, or political life, not just a lack of money.
• Government definition - Describes it as a combination of issues like unemployment, low skills, inadequate housing, high crime areas, poor health, and family breakdown.
• Contributing factors - Age and disability play roles, but the Poverty and Social Exclusion Survey (2000) identified poverty as the most significant driver.
• Spiral of disadvantage - As noted by the Department of Social Security (1999), interconnected problems limit opportunities for individuals and their children, such as living in areas with substandard schools due to low income, impacting future prospects.