Over the odds

Think tank: Centre for Social Justice

Author(s): Matthew Greenwood

November 27, 2022

This report from UK think tank the Centre for Social Justice looks at the next steps for dismantling the poverty premium.

We estimate that nearly seven million people in Great Britain are paying multiple poverty premiums – this is where low-income households pay more than those on higher incomes to access essential products and services, such as insurance, credit, energy, and food. The latest estimates suggest, these premiums cost about £478 per year. But the cost of these premiums is more than just financial. By reducing low-income consumers’ overall means, these premiums are responsible for decreasing their ability to access the basic building blocks needed to build a strong foundation from which to build. Without this foundation, a focus on a brighter, long-term future is more difficult to achieve and economic potential is left unlocked. In Over the Odds, we show which premiums consumers report paying and how they are reacting to the increased cost of living. We outline a number of practical next steps for government and businesses to dismantle and alleviate premiums.