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Currency in the United Kingdom is still the pound. A pound translates to approximately $1.50 US currency. The national minimum wage in the United Kingdom as of October 00 is 4.10 pounds. For citizens under the age of 1, the minimum wage is .60 pounds. These figures are actually a substantial increase from previous figures and have helped narrow the wage gap between women and men, young and old, overall making economic distribution more level.

Britain relies for retirement income provision on a basic national security system and a second tier national system from which individual employees can contract out and set up their own private pensions, and personal pensions. The latter are arrangements whereby individual workers can contract out of either the national second tier plan of their employers substitute plan and set up a private personal saving arrangement of their own. Individuals are encouraged to contract out of either the public second tier or their private firm level pension plans and open tax- favored savings accounts. These personal pensions are the “ultimate in portability”, individuals can move from job to job without loosing their pension rights.

Benefits in the UK redistribute income on a significant scale. Cash benefits play the greatest part in reducing income inequality, raising the share of total income received by the bottom quintile from to 6 percent, while the share of the top quintile is reduced from 5 to 44 percent. There are a number of significant benefits the UK’s citizens can apply for. Worth mentioning is the Job Seekers Allowance which one can be entitled to if he is capable and available to work and is actively seeking work. The Widow’s Payment/Pension plan and Disability Living allowance allocates money to those who qualify. Pension Credit grantees an income of 10.10 pounds a week for a person over the age of 60 who is single (the income is raised to 155.80 pound for couples). What is interesting about this benefit as well is that it does not penalize those who have saved up large amounts of money. Even those people with substantial savings can earn up to 1.0 pounds a week. The United Kingdom seems to be very willing to accommodate every citizen’s needs no matter how minor for there are even such benefits as Cold Weather Payment, Funeral Payment, free milk for disabled children, and a Christmas Bonus for those who have qualified for other benefits during the year.

Perhaps the greatest benefit of all about living in the in the United Kingdom is their system of socialized health care. It is (obviously) free to everyone both residing in and visiting the country. Citizens will tell you that the buffest drawback to this system is that you are not able to choose your own doctor and that it is rather difficult to get an appointment in a timely manner, but with the astronomical costs of healthcare, most are thankful.


With the government continually giving so much, it is a small wonder that companies are able to draw employees on the basis of benefits alone. It is even a law in Britain for employers to provide eyeglasses to those who have jobs that may put strain on the eyes. Oftentimes, employers will offer incentives like company cars- a nicer model for the more prestigious jobs. Extended vacations and maternity leaves above and beyond the required 0 days and 6 weeks, childcare, paternity and adoption leaves are all beginning to be quite the norm. Note that it is law in Britain that forbids employers to take away a promised benefit. Doing so would result in a breach of contract.

According to the OECD Handbook, the UK continues to trail behind in spending per student, and the results are obvious. An international literary survey proved that only a few OECD countries have a higher percentage of adults with literary and numeric skills at the lowest level while educational attainment is weak. As a result, the government has decided to spend more on teaching and infrastructure by renovating buildings and promoting public private partnerships. Also to help bring teachers in, incentives like help to finance homes have been set up. Britain plans to increase literacy rates by establishing specialized schools that would help raise standards by showing other schools how to succeed. It is the government plan that by 010 50% of young people should have the opportunity to attend schools of higher education. If not, hopefully the opportunity to obtain vocational training through the New Deal would help them land a job in a specific field of study.

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