Invisible Worker: Why do we make the poor pay more?

Invisible Worker: Why do we make the poor pay more?

Featuring Sara Davies, Senior Research Fellow in the School of Geographical Sciences at Bristol University and Associate Research Director of the University’s Personal Finance Research Centre

This episode is about the Poverty Premium. The Poverty Premium designates the extra tax that low-income earners pay for essential goods and services; everything from utilities to credit to insurance, purely down to the money in their bank account.

This isn't merely an inconvenience; it's a systemic barrier that perpetuates financial hardship. We'll delve into the mechanics of this premium, exploring how factors like limited access to competitive markets, higher interest rates, and prepayment costs contribute to the burden. We'll discuss the real-life implications for individuals and families, and how this extra financial strain can impact their ability to build savings, manage debt, and improve their overall quality of life. Furthermore, we'll examine the social and economic consequences of the poverty premium, and how it contributes to wider inequalities within society. We'll explore the need for policy changes and innovative solutions to address this issue, including the role of financial inclusion initiatives and consumer protection measures. This episode aims to shed light on the hidden costs of poverty and inspire action to create a more equitable financial system.