LOW INCOME CONSUMERS PAY A POVERTY PREMIUM EQUIVALENT TO THREE MONTHS’ WORTH OF FOOD
Fair By Design’s study of 1,000 low income households  accessing the services of national poverty charity Turn2us, found that low income households were spending the equivalent of 14 weeks’ of food shopping  just to access the same services as those who were better off.
People struggling with money were paying an extra £478 a year for essentials like energy, credit and insurance because of the poverty premium:
- Car insurance was the biggest contributor to the poverty premium, with some people paying nearly £300 more a year because of living in a deprived area. Additional charges for paying monthly instead of annually could mean an extra £160, for a total poverty premium of nearly £500.
- Credit was expensive when on a low income, whatever form it took. A sub-prime credit card cost around £200 more a year (between £194-£207) and personal loans cost more than £500 extra.
- Being on the best energy prepayment tariff was still be £131 more expensive than the best online-only one. But being on a fixed tariff could still be costly: not paying by direct debit cost up to £143 more a year.