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Being poor costs more

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"Do not exploit the poor because they are poor and do not crush the needy in court, for the Lord will take up their case and will exact life for life"- Proverbs 22:22


Tight budgeting preferences and risk-aversion makes life difficult for low-income families compounded by digital or financial exclusion.
 
Their spending is driven by essentiality therefore trying to avoid using higher-cost credit can prove very difficult for them.
 
Households who cannot obtain access to low-cost supermarkets, banks and building societies, direct debit facilities and private transport, have little option but to pay more for their essential daily needs.
  • Food
  • Household shopping
  • Gas & Electricity
  • Insurances
  • White Goods purchases
  • Cheque cashing
  • Unexpected circumstances
It is scandalous today, that on our UK high streets, there are lucrative rent-to-own firms, profiting from struggling families who have no option than to spread the cost of more expensive essential household items.

The poor who may otherwise have to do without, are being forced to pay up to three times the shop price for essential goods, in order for them to be affordable on weekly payment terms.
​See this typical example below
.

A typical credit Poverty Premium tax
​ of  £938.00

  • A branded washer/dryer can be purchased in a reputable high street store for £622.00 delivered & fitted.
  • The same model is charged at a product price of £785.00 d/f at a rent-to-own store, already a £160.00 Poverty Premium tax.
Offering a tempting weekly payment of just £10 over a three year period makes it very affordable for struggling families. But because of their financial situation:
  • They will have to pay £1560.00 for an item that can be bought outright for £622.00.   (Prices sourced Oct 17)

A typical car insurance Poverty Premium tax
​of £430.00

With no other choice but to opt for monthly installments, struggling families succumb to another Poverty Premium.
​​
2005 1.2 Renault clio - living in NW1 London
Annual premium £1116.00
​Same company with monthly installments £1546.
00

Car insurance- Area Post code tax
​- £275.00

If you live in a high crime area, this can influence how much you pay for car insurance.
A difference of just 2.5miles - same insurance company

​2005 1.2 Renault clio - living in NW1 London
Annual premium £1116.00

2005 1.2 Renault clio - living in W1D London
Annual premium £841.00
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  • Home
  • About us
  • What we do
  • Interest Free Grant Scheme
  • Poverty premium
  • Being poor costs more
  • Our Terms
  • SeaChange Account
  • Resources
  • Money Workshops
  • Budget Planner APP
  • Budget Planner Excel Sheet
    • Video
  • Contact
  • Get involved
  • Dartmoor Extreme