An extra 7 years before I’m debt free

A new report from Toynbee Hall has examined the effect of the poverty premium on debt advice service users. The report highlights a number of groups which are particularly vulnerable to paying a higher poverty premium, and outlines the mechanisms that these groups may be using in order to cope with the premium.

The report noted that, of all groups paying a poverty premium, men are paying average premiums that are four times greater than their female counterparts. In addition, the report found that council housing tenants were particularly vulnerable to paying a high premium for their electricity; while people living alone were also likely to pay more for essential services.

The report makes several recommendations to help combat the poverty premium, including: encouraging service providers to focus on vulnerable groups, and working with local housing providers to promote good money management practice.