the poverty premium

Find out how it costs more to be poor

At the moment, people on low incomes in the UK pay higher prices for many essential goods and services than people who are better off.

  • They pay more for food because they often don’t have access to cheap, healthy food and bulk discounts through supermarkets.
  • They pay more  for fuel because they are forced to use prepayment meters, and miss out on direct debit discounts.
  • They pay more for finance because they can’t access mainstream credit and have to depend on doorstep lenders and other legal loan sharks. They are also regarded as a high risk by insurance companies.
  • They pay more for  furniture and household items, because they have to rely on rent-to-own companies rather than buying things outright. In one example we encountered in our work, people were paying over £1,700 to BrightHouse for a TV which would cost less than £600 to buy outright elsewhere.
  • They even end up paying more than they can afford for funerals.

Save the Children has estimated that this ‘Poverty Premium’ costs the average low-income household £1,300 per year.

Church Action On Poverty, Unit 28 Sandpiper Court, Water’s Edge Business Park, Modwen Road, Salford M5 3EZ

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