How much are you spending on transportation?
According to a new research by the RAC Foundation, the poorest households in the UK are spending more than a quarter of their disposable income on buying and maintaining a vehicle.
With the average cost of petrol at around 139 pence per litre, nearly 800,000 UK households are struggling with transport poverty. Households with a weekly expenditure of £167 are spending £44 of it on vehicle-related purchases, including petrol and insurance.
“We already knew transport was the single biggest area of household expenditure bar none,” Professor Stephen Glaister, director of the RAC Foundation, explained. “But this spending breakdown just for car-owning households is not normally available. It lays bare the truth about the extend of transport poverty in the UK.”
Since January 2013, petrol and diesel prices have increased by 6 and 5.78 pence a litre, respectively. Although people are hoping for a fuel duty freeze in the near future, analysts say it won’t help much.
“For people already drowning under the weight of motoring costs, cutting a penny or two off the price of a litre of fuel will help but is like rearranging the deck chairs on the Titanic — ultimately futile,” Glaister admitted. “To make any meaningful difference to those on the lowest incomes, the rate will need to be cut much further.”
For more information on the research by the RAC Foundation, or to read the original article, please click here.