Poverty Premium

The Poverty Premium describes the extra costs that families in poverty pay to access essential goods and services, such as food, fuel and credit.

Toynbee Hall’s 2014 report on the Poverty Premium notes:

“The Poverty Premium comprises of a number of areas in which people in poverty pay extra to access goods or services. It is driven by two main factors: an individual can be pushed out of cheaper goods and services, as is often the case with banking and credit; or they self-exclude from goods or services which could allow them to use strategies for managing money more effectively on a lower income. This self-exclusion can clearly be seen, for example, in the case of Direct Debt discounts, a payment mechanism which those on lower incomes often avoid. This is because people on low or variable incomes worry they will not be able to make the automatic payments and will instead incur refused payment fines.”

In December 2017, we launched an inquiry into the poverty premium. Would like to understand the extent of the poverty premium and make recommendations for policymakers and business to alleviate or eradicate it.

We would like to hear from low-income consumers, the voluntary sector, researchers and business.

Please complete the submission form by 30 April 2018.


APPG publishes report on inquiry into the poverty premium

The All Party Parliamentary Group on Poverty launches its report into the poverty premium.

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Providing Extra Support to Vulnerable Customers: E.ON’s approach

In a competitive market, how companies ensure their services are accessible to all, and in particular, how they support their most vulnerable customers, can be a tricky subject. Not ...Read More

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How fixing the loyalty penalty will help low-income consumers

Essential service markets aren’t working for people on low incomes. That’s a key reason why Citizens Advice made a super-complaint​ to the Competition and Markets Authority (CMA) in September: ...Read More

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The poverty premium: how would you feel?

Posted on 06 Mar 2019

Alicia is a Commissioner of Birmingham Poverty Truth and an Ambassador for Fair by Design.  She has also recently become an Ambassador in a unison of Fair by Design ...Read More Read More

The hidden hurdle of nappy need for struggling families

Posted on 21 Feb 2019

Audrey Symes is a volunteer for the US-based National Diaper Bank Network, and is working with a consortium of British charities to publicise the issue of nappy need in ...Read More Read More

Reports and research on the Poverty Premium

Posted on 15 Feb 2019

A bank of existing research and reports from business, academics and civil society on the poverty premium and related topics. The scale and impact of the poverty premium Measuring ...Read More Read More

Films, podcasts and blogs: lived experience of poverty

Posted on 15 Feb 2019

A bank of short films, videos, podcasts and blogs available to watch online that tell the stories of those living in poverty.   FILMS AND VIDEOS Sue on how ...Read More Read More

Energy costs more when you’re poor: Fair By Design guest blog

Posted on 15 Feb 2019

Lucie Russell is the Director of Fair By Design, a campaign dedicated to ending the extra costs of being poor. In this blog, Lucie talks about the experiences of the ...Read More Read More

Poverty Premium Inquiry written submissions now available to view

Posted on 01 Feb 2019

In December 2017, the APPG on Poverty launched an inquiry into the poverty premium in order to understand the extent of the premium and to make recommendations for policymakers ...Read More Read More

Jean’s story: contending with the disability price tag

Posted on 04 Sep 2018

  Jean has Ehlers-Danlos syndrome, which means her joints dislocate easily and she is in a lot of pain. In this blog, she talks about the additional costs of living ...Read More Read More

Evidence sessions of the APPG on Poverty inquiry into the poverty premium

Posted on 28 May 2018

The APPG on Poverty would like to understand the extent of the poverty premium and make recommendations for policymakers and business to alleviate or eradicate it. The APPG on ...Read More Read More

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