Poverty and Inequality in the UK

Problem Solving

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Poverty and inequality mainly goes hand in hand. Inequality is mainly associated with the
well- being of an individual. On the other hand, poverty is also mainly focused on the lower end
distribution who tends fall below the poverty line. Poverty and inequality tends to go hand in
hand. This study will highlight on evaluating the grand challenge associated with the poverty and
inequality. Moreover, this study also tends to focus on constructing a causal loop diagram and
evaluate one system based methodology in order to address the grand challenge related with the
poverty and inequality. This study also examines the critical reflection associated with the
strengths and weaknesses of the system methodology.
MAIN BODY
Poverty is referred to as the state of the individual or community which tends to lack high
degree of financial resources in order to maintain a minimum standard of living. It means that the
income level of the certain individual or community is so low from employment that their basic
needs cannot be met. Poverty and inequality mainly goes hand in hand. Inequality is mainly
associated with the well- being of an individual. Growth within the household income in United
Kingdom since the year 2008 is considered to be very low (Cooke, Hague and McKay, 2016).
The income gap between the poor and the rich tends to remain consistent. There seems to be high
degree of inequality in consumption, income and wealth in which eventually results in high
degree of inequality and poverty within the United Kingdom. The key factor which contribute to
poverty in United Kingdom is mainly associated with an education system. The reduction in the
government spending on services which contributes to the benefit of the community is
considered to be one of the biggest challenge which contributes towards poverty in United
Kingdom (Mills, 2015). People were more likely to be affected by poverty and United Kingdom
are those individuals who has lower degree of formal education and long-term unemployment.
They tend to live below the poverty line and a restricted to access to living better standard of life.
Unemployment essentially caused by high degree of lower employment opportunities and wage
differences between the people (Kabeer, 2015). There is a systematic demand and supply and
associated with different set of experience, qualifications and skills of individuals. One of the
key prominent driver of inequality within United Kingdom is that increase in the value of the
housing is one of the most common cause of inequality and poverty which results in low income
people cannot buy houses and eventually leads to lower standard of living. Poverty is also mainly
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