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You are here: Home > Current Topics > Mind your Business > 31 January 2005 |
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Successive governments over the last 20 years have been keen to point out how far the UK has improved its economic performance. The Labour Party are trumpeting that they have presided over the most stable period in the UK's recent economic history and the Conservative Party are suggesting that the foundations for this prosperity was laid as far back as 1979 when Mrs Thatcher began a radical programme of reform. 
Would economic development and prosperity make this scene a thing of the past? © Photolibrary Group Most economists would agree that the effects of reform do not happen quickly and tend to manifest themselves over a period of years but in terms of the state of the economy it does appear, for whatever reason, that the UK is in a healthy position. Inflation is stable, unemployment has been falling, the numbers employed have risen and economic growth is amongst the highest in the developed world. Such a healthy economic position would imply that the population as a whole is 'better off' - whatever that means and however it could be measured - but students of economic growth should know that growth must be viewed with the understanding that it has certain limitations. The Office for National Statistics (ONS) has recently published a report on 'Social Inequalities' looking at the experience of different social groups in relation to six key areas - education, work, health, living standards, participation and income. It finds that the benefits of the prosperity experienced by the UK as a whole are not as evenly spread as we might hope. The following section provides some data relating to the summary findings of the report. |
Source: ONS report 'Focus on Social Inequalities', (Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen's Printer for Scotland.) (http://www.statistics.gov.uk/downloads/theme_compendia/fosi2004/SocialInequalities_summary.pdf)
NS-SEC - The National Statistics Socio-Economic Classification:
The classification has three versions, consisting of eight, five and three classes. The eight class version separates out occupational groups in more detail ranging from higher managerial and professional occupations through to routine occupations and those who have never worked or who are unemployed.
See NS-SEC classes for more details. (http://www.statistics.gov.uk/methods_quality/ns_sec/class_collapse.asp)
Gross Weekly Earnings:
The earnings of those in work before any deductions have been made for income tax, National Insurance and so on.
Economically Active and Economically Inactive:
The economically active are those individuals in work or actively seeking employment. The economically inactive are those out of work and not seeking work including those who are unable to work through illness or disability and those who look after families or other dependents full time.
The Working Age:
For males the group comprising the working age are those between the ages of 16 and 64; for females the working age group is between 16 and 59.
Older people:
Classed as males between 50 and 64 and females aged 50 to 59.
Real Disposable Household Income:
The amount of income available for domestic consumption after statutory deduction of taxes, etc. The term 'real' denotes that the effects of inflation on this income level have been taken into consideration.
Inequality:
Refers to the differences between incomes, etc. between different groups.
Inequity:
Refers to the differences between groups with an implication that the differences are associated with an element of unfairness for some reason.
Limiting Long Term Illness:
A self reported measure reflecting the state of an individual's health that prevents them from being able to carry out normal working activities. Age standardising is a method by which comparisons can be made across different populations by taking account of population structures.
Volunteering:
This takes on two guises - volunteering to help someone related to the individual - doing some gardening work for an elderly relative, for example, and volunteering to do work that provides benefit to someone outside the family unit - doing work for charities, for example.
You are being asked to produce a report focusing on the levels of both inequality and inequity in the UK today. Your report should comment on the extent to which inequality and inequity has been reduced and where the challenges still lie for economic policy makers.
The second part of your report should make suggestions as to the policy measures that might be needed to address some of the issues you have raised. The report can be a written submission or it can be in the form of an oral presentation.
Some issues to consider:
