Tuesday, March 5, 2013

Startling Findings from the RAC Foundation

  • 800,000 homes spend more than a quarter of their income on running a car
  • The poorest ten per cent of car-owning households in the UK are mired in transport poverty and are spending at least 27% of their disposable income on buying and running a vehicle.
  • This equates to roughly 800,000 homes.
  • By contrast, those in the wealthiest car-owning households are spending around 12% of their disposable incomes on purchasing and operating a car.
  • Of a total weekly expenditure of £167, those in the poorest car-owning households see £44 go on vehicle-related purchasing and operating costs.
  • Of the £44, £16 is used to buy petrol and diesel and £8.30 is spent on insurance.
  • The high level of expenditure is revealed in analysis of previously unreleased data from the Office for National Statistics which has been seen by the RAC Foundation.

At first glance the numbers seem incredible, but there they are in black and white, courtesy of the Office for National Statistics. The poorest car-owning households in the UK spend at least 27% of their weekly disposable income on buying and running a vehicle. Scaling up the figures, this suggests that some 800,000 of the least-wealthy homes in the country are mired in transport poverty. If we are concerned, rightly, about fuel poverty, then we should be extremely worried about this.


The previously unpublished data, collected as part of the Family Spending survey, show that of a maximum total weekly expenditure of £167, these households spend £44 on purchasing and operating costs related to a vehicle. £16 of this is used to buy petrol and diesel, another £8.30 goes on insurance. 


For those families who regard it so important to run a car that they are willing to make an outlay of such staggering proportions




Please donate to help the fight for lower fuel prices and a better deal for drivers


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