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The Effects of Fuel Poverty on the Household

12th December 2019 RIAMS

The latest bulletin by David Ormandy and Steve Battersby, ‘Transport and Household Poverty’, sheds light on a sector of the population with high levels of vulnerability to fuel price increases due to their low income and adaptive capacity.

In highly motorised countries, some sectors of the population own and use cars despite struggling to meet the costs of running them. This makes them vulnerable to increases in the price of motor fuel. This bulletin makes reference to ‘Vulnerability to fuel price increases in the UK: A household level analysis’ a paper investigating the vulnerability to these price increases at household level.

A set of indicators was proposed based on individual household expenditure data to identify which low-income households were spending disproportionately on motor vehicles and assess the level of their economic stress. The findings showed that ‘Low Income, High Cost’ households account for 9% of households in the UK, characterised by very low responses to fuel price increases which may cause them to compromise on other important household expenditures.

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