Poor spend quarter of income running a vehicle

Date published: 06 March 2013


The poorest 10% of car-owning households in the UK are spending more than a quarter of their disposable income on buying and running a vehicle, research suggests.

More than 800,000 homes are "mired in transport poverty" as a result, the RAC Foundation said.

Of the total £167 they spend each week, £44 goes on car-related expenses.

By contrast, the richest car-owning households spend 12% of their income on buying and running a vehicle.

Of the £44, £16 goes on fuel and £8.30 on insurance, with £4.80 going on repairs and servicing.

The research is based on "previously unreleased" data from the Office for National Statistics, the RAC said.

Petrol prices have been rising this year and many expect further modest rises in the short term.

There has been widespread concern about the rise of fuel poverty in the UK, which is defined as those spending more than 10% of income of home heating. This research suggests transport poverty is a more pressing problem for the poorest households.

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