The austerity measures were introduced to eliminate budget deficits that led to unsustainable levels in the aftermath of the financial crisis. Austerity was introduced in 2010 in the aftermath of the global financial panic of 2008, which was the most crippling economic downturn since the Great Depression. Government spending was shortened across society, besides the national health service and education as these were protected, and spending was cut for the police, road maintenance, libraries, courts, prisons, and housing assistance for seniors.
There are arguments however which criticise the austerity measures, some saying that the measures depress economic growth and ultimately cause reduced tax revenues that outweigh the benefits of reduced public spending. It also led to reduced spending on police, courts, and prisons. The programme also included the cancelation of school building programmes, reductions in local government funding, and an increase in VAT. People have said that the economy is in an 'induced coma' and the effect of the cuts is less economic activity, higher unemployment, and business survival prospects - leading to a worsening of the budget gap.
The austerity measures led to a negative contribution towards poverty in the UK. There is a predicted 7% rise in child poverty to as high as 40% by 2022, which is almost one in every two children. There are 4.1 million children and four million workers in the UK that are living in poverty, and in-work poverty is rising faster than employment. Since the austerity measures were put in place in 2010, there has been a rise in child poverty, which is largely attributable to reductions in state support for families with children.
One of the most controversial aspects of austerity was the Work Capability Assessments, which is very important for universal credit. It finds out what work related responsibilities you need to meet in order to keep getting the benefit in its full amount. If you have a limited capability for work in the assessment, your work-related responsibilities will be limited. The WCA has two parts. One is the limited capability for work assessment, which finds out whether or not you can remain on ESA. The second part is the limited capability for work related activity assessment , which finds out which of two groups you will be put in. The WCA assessment covers both physical and mental health and awards points for the activities you are not able to do or struggle with doing as a result of your health condition or disability. However, it disadvantages people with mental health conditions, as it requires them to understand and be able to explain the nature of the condition to those who are conducting the assessment, when they may have insufficient awareness of their difficulties to do so.
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