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Fuel Costs to Blame for Rising Transport Poverty

07/03/2013

According to data acquired by the Royal Automobile Club (RAC) Foundation, 10 percent of the households that own cars in Britain are affected by what is known as ‘transport poverty’.

The  “unreleased data” by the Office of National Statistics was analysed by the RAC Foundation only to conclude that the poverty stricken households were dishing out about 27 percent of their disposable income (approximately more than a quarter of their earnings) on not only buying a car but also maintaining it on the whole.

It has been revealed that more than 800,000 households are grappling with this kind of transport poverty. The foundation said that of the £167 that the average “poorer household” spends every week, £44 is used up on car related expenses.

On further analysis of that £44 the RAC found that £8.30 is spent on car insurance while around £4.80 would be spent on car servicing and repairs.

While it is not believed to be the best news, the director of the RAC Foundation Professor Glaister recommended to the government to focus on cutting down on fuel duty.

"These figures should shock the chancellor," he said.

Elaborating further on the rising costs of motoring, in particularly fuel, Professor Glaister said, "We already knew transport was the single biggest area of the household expenditure bar none. But this spending breakdown just for car-owning households is not normally available.

"It lays bare the truth about the extent of transport poverty in the UK.”

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