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Why the poor pay more for everyday goods and services

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Tuesday, 12 December, 2017
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Poverty Premium

At the APPG for Poverty today, which I chaired, we agreed to launch an inquiry into the effect of the poverty premium on low income families. The poverty premium is when households are forced to pay more for everyday goods and services. This could range from paying more for credit, pre-payment meters for gas and electricity or even an extra £5 per year for a paper copy of a utility bill because there is no internet. All this can add up to a significant amount by the end of the year. According to our main speaker today, Dr Sarah Davies from Bristol university, the average low-income household in 2016 paid a poverty premium of £490. There was general agreement amongst the attendees from housing associations and other organisations from the charitable sector that something needs to be done. Our inquiry will look at how people have been affected and what new measures should be brought in, either by government or by business, to reduce the burden for people who need the most help.

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Kevin Hollinrake Member of Parliament for Thirsk and Malton

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