Low-income families 'ripped off' by higher prices for basic goods, says Save the Children
Neil Puffett
Tuesday, January 11, 2011
Low-income families are paying as much as 1,280 a year more for basic goods and services than better off families, a study by Save the Children has found.
The UK Poverty Rip-Off: The Poverty Premium 2010, found that the so-called "poverty premium" has risen by more than £280 since the charity conducted initial research in 2007.
The extra cost of gas and electricity bills account for 20 per cent of the premium, with poor families often using more expensive payment methods such as pre-payment cards.
Sally Copley, head of UK policy at Save the Children, said: "There is a clear link between living in cold, damp conditions for long periods and children’s health being put at risk."
"We believe the poverty premium is totally unfair and is ripping off low-income families who are already struggling to make ends meet."
Other additional costs in the poverty premium include the cost of borrowing and insurance.
Families on low incomes often have a poor credit history and cannot get credit from banks and building societies, instead turning to doorstep lenders or catalogues that can charge huge interest rates.
Low-income families also routinely pay much higher insurance premiums, as they tend to live in areas with higher crime rates.
"It’s simply not fair to make poorer families pay more," Copley said.
"We are not talking about luxuries, but everyday goods. Children in these families are missing out on the best possible start in life, because their parents are being unfairly charged."
Save the Children is calling on energy suppliers to ensure the poorest do not pay more by introducing a rebate for low-income families.
