A Fair By Design study of 1,000 low income households found that these households were spending the equivalent of 14 weeks’ of food shopping just to access the same services as people who were better off. People in this study were paying an extra £478 for essentials like energy, credit and insurance because of the poverty premium.

By their very nature, essential services such as energy, credit and insurance, are needed by everyone. However, the design of these markets means that many people are treated less fairly. This can mean that poorer people pay more for products and services than those who are better off. This is the poverty premium. It can also mean that products and services do not meet people’s needs, or even that they are excluded altogether.

Published in June 2021 by Fair By Design.