Studies, Reviews and Research

The UK Poverty Rip-Off: The poverty premium 2010

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Save the Children UK

Despite efforts to reduce poverty gaps, low-income families are still paying more for their basic goods and services than better-off families. Save the Children has calculated that this annual ‘poverty premium’ can amount to more than £1,280 for a typical low-income family. 

Low-income families shouldn’t be penalised for being poor. To ensure a fairer system for all vulnerable families, Save the Children UK is calling for:

  1. All energy companies to provide a fixed rebate under the Warm Home Discount for families on a low income with children, using receipt of Child Tax Credit and income below £16,190 as a proxy for fuel poverty;
  2. The Department for Work and Pensions and the energy suppliers to run a pilot program to assess the feasibility of data-sharing to allow direct payment of rebates to low-income families;
  3. All energy companies to raise awareness of their rebate by promoting it to all customers
  4. All energy companies to provide adequate and prior notification of price increases to prepayment meter customers.
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