Austerity is a set of economic policies implemented by a government to control public sector debt. It measures a reduction in government spending, an increase in tax revenues, or even both, to reduce the budget deficit and avoid a debt crisis.
In 2008, the global recession started and banking crisis frighten everybody and left most on a shaky ground. Since 2010, austerity has been the UK government's dominant fiscal policy. The stated aim of austerity was to reduce the deficit in the UK to give the confidence to the markets, therefore deliver growth to the economy. It was seen as a 'solution' to the British problems in 2010 because of the change, reducing the budget deficit. This is money that a government has agreed to spend but does not have, and would of improved overall confidence in the economy and increase private investment.
When austerity happened, there where many different criticisms of the system, many public institutions and bodies lost out. For instance, the poorest tenth of the population are by far the hardest hit, there was a 38 per cent decrease in their net income over the years 2010-15. By comparison, the richest tenth will have lost the least, comparatively, seeing a 5 per cent fall in their income. There is also continuing evidence that the very richest are faring much better since the economic crisis.
Austerity both contributed to poverty and also was a problem to poverty within the UK. The ways it contributed towards poverty was public expenditure cuts, an increase in regressive taxes that impose a greater burden (relative to resources) on the poor than on the rich, reduced labour protection and pension reforms. However, those already in poverty have become more and more vulnerable over the years. A school dinner lady and a mother of three, Lorna, who lived in London, stated "I felt very ashamed having to go to a food bank for the first time. It was down to my son’s school liaison officer coming round to my house, because I hadn’t sent my son into school for a couple of days as I couldn’t afford a packed lunch for him and I couldn’t afford to pay for a school dinner. I couldn’t do what a mum should do for them, look after them. I couldn’t even feed them. That just makes you feel really low as a parent." Her story creates an perfect example of how austerity would have created a bigger problem to those who were already suffering.
'The Work Capability Assessments' determines whether Universal Credit claimants are eligible for an additional amount for ill health or disability, and if any work-related requirements apply to them. It was considered so unfair because of the discrimination against many, because of either a mental health disability or if being unwell. Judges would recognise that claimants with mental health problems have a number of specific difficulties in self-reporting, for example they could of lacked insight into their condition. Not all assessors where medically qualified and almost invariably they have very limited knowledge or experience of working with people with mental health problems. The interviews were often hurried, and relied on applicants to explain the limitations on their ability to work. This was a serious problem for people with serious mental health conditions or ill health, as they wouldn't be getting the treatment they needed.
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