Making the Poverty Premium History - A practical guide for business and policy makers
Authors: Sara Davies and Andrea Finney
Funded by: Economic and Social Research Council
Published by: University of Bristol
Publication date: November 2017
The Poverty Premium: when households in poverty pay more for everyday goods and services. First coined in the 1960s it may be an old concept but it remains an important social issue today. And for the poorer households affected it is a real and pressing problem. We estimate that the average low-income household in 2016 paid a poverty premium of £490. Of course, there is no such thing as an average low-income household – depending on households’ needs, preferences and circumstances, some will have paid less while others will have paid more. Much more.
This guide offers an evidence-based foundation for addressing the poverty premium which considers the particular roles of business and government. It focuses on the three most significant areas of the poverty premium: household energy, insurance and credit.