- One in eight households in Britain experience at least one type of poverty premium.
- On average the poverty premium costs £430 per year for a low-income household.
- Each British constituency loses £4.5 million a year to the poverty premium.
- The North East of England has the highest proportion (14.7%) of households incurring the poverty premium.
- An interactive map of the findings across British constituencies gives information on every constituency
- Read the full report ‘The Cost of Living and Levelling Up: Why the poverty premium matters for local economies
The research shows that one in eight households experience at least one type of poverty premium. This costs each parliamentary constituency £4.5 million per year, equating to a total loss of £2.8 billion from the national economy.
The North East of England has the highest proportion of households incurring the poverty premium (14.7%), followed by the North West (13.4%), Yorkshire and the Humber (13.4%), London (13.1%) and Wales (13.1%). The South East of England has the lowest proportion of households experiencing the poverty premium (11%).
“As families across Britain struggle with the sharp rise in the cost of living, taking action to end the poverty premium has never been more important.”
“Tackling the poverty premium is an easy way for the government to put money back into people’s pockets and it wouldn’t require any additional money from the Treasury.”
“People shouldn’t have to pay more for life’s essentials because they are on a low income. Industry, government and regulators need to come together to make sure everyone can access the products and services they need at a price that is fair.”
“As families across Britain struggle with the cost of living crisis, taking action to end the poverty premium has never been more urgent. Government intervention to eliminate the poverty premium would put on average £430 back into the pockets of over 3.5 million low-income households without requiring any additional funding from the Treasury.”
Sara Davies, Senior Research Fellow, The University of Bristol Personal Finance Research Centre, said:
“This research makes it easy to identify where the local focus of poverty premium elimination should be. By addressing these issues, millions of pounds could remain within local economies. This money could be spent locally, creating extra jobs and growing local businesses. Or it would ease financial difficulties for low-income households in the area and reduce the burden on local services.”