​The Poverty Premium

The term is used to describe how destitute people pay more for their essential goods and services compared to those that are not in poverty. 
​
Low-income households’ get exposed to the PP through various ways either imposed on them or  through their own risk averse choices. eg. Use of fuel prepayment meters, area-based insurance premiums or higher-cost credit. 

If we truly want to address this inequality, we have to change the systems that keep people poor but until that time comes, GiG will try to help lower that Poverty Premium for low income families through Gods giving.

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
​of £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

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)

Time is money

​The poor are not selling their time by the hour
​but selling their lives.

The poor don't have the luxury of throwing a load of washing into the machine and then taking a morning jog while it goes through the motions. They wait until a Monday evening, when the local launderette is most likely to be empty and then drag bags to the corner and sit around for the completed cycle in fear that the clothes may get stolen if left unattended.

Not owning a reliable car, train fares beyond their budget, they have little choice but to take buses, increasing their commute time to work. Their work is low paid, therefore forced to work two jobs at unsociable hours and are often physically demanding.
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If among you, one of your brothers should become poor, in any of your towns within your land that the Lord your God is giving you, you shall not harden your heart or shut your hand against your poor brother"  - Deutronomy 15:7