Defining and measuring poverty

Absolute poverty: defined by the World Bank as lacking basic necessities for survival, measured globally at living under $2.15 per day. In the UK, assessed by whether a household can afford a basket of essential goods.
- Rare in the UK but remains a global problem with severe consequences.
Relative poverty: (👤 Townsend, 1979) poverty measured in relation to typical living standards. Defined in the UK/ EU as income below 60% of median after housing costs.
- Captures social exclusion but can fluctuate with economic change.
Social exclusion: being cut off from the social, economic, and political life of society. Includes lack of services, powerlessness, and limited opportunities.
- Broader than income poverty but harder to measure consistently.

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