Press Story

Poorest households spend a quarter (25 per cent) of their income on their car
Transport costs take up twice the share of income for the least well-off
IPPR recommends new funding for local authorities to save local bus routes

Poor public transport across the UK is leaving more people dependent on cars than ever before – even when it places serious strain on household budgets, new IPPR research finds.

The report warns that the UK’s transport system is deepening poverty and social exclusion, leaving low-income households cut off from jobs, services and opportunity.

The think tank says that transport costs are fueling the cost-of-living crisis. New analysis finds that the average UK household spends £87 a week on transport, this rises to £108 if they own a car, but falls to £13 for non-car owners.

Even though the poorest travel much less than the richest, they spend twice as much of their income on surface transport – such as trains, buses, cars and bikes – compared to the richest. The poorest fifth of households spend 18 per cent of their income on transport, compared to 11 per cent on average, and 9 per cent for the richest.

The researchers of the report say that the high cost of train tickets, poor bus provision and inadequate links to public transport make much of the UK population reliant on owning a car, even when it comes at a great cost. The poorest fifth of households spend an average of 25 per cent of their income on their vehicles, if they own one.

Previous research shows that those living in more deprived or more ethnically diverse areas are offered car insurance premiums around 15-20 per cent higher to insure the same driver in the same car.

Many people living on low incomes in the UK are limited in their ability to access the basics because of poor or expensive transport provision. To improve people's ability to get to work, health appointments and school, IPPR recommends:

Provide funding to local authorities to save local bus routes and set up transport concession schemes, such as travel passes for young people and jobseekers
Create a social leasing scheme for electric vehicles, so people on low incomes in rural households can lease a car for a low monthly fee subsidised by the government
Reduce the VAT rate on public charges from 20 per cent to five per cent, and use competition law to ensure that the private sector passes this saving onto consumers

Becca Massey-Chase, principal research fellow at IPPR, said:

“Too many people are locked out of opportunity because the transport system simply doesn’t work for them. Parents are out of work, kids are late to school, and medical appointments are missed — not because people are unwilling, but because the buses don’t turn up or the cost of a journey is unaffordable.

If the government is serious about tackling poverty, it must fix local transport. That means cheaper, more reliable services — designed with and for the people who rely on them most.”

Ruth Talbot, founder of Single Parent Rights, said:

"This report highlights what single parents have long known: reliable, affordable transport is a lifeline, not a luxury. When it works well it makes the challenges of family life with one income and one pair of hands manageable, without it, single parent families are excluded from communities, services and employment opportunities.

“Through their research, IPPR have identified viable solutions to ensure UK transport policy meets the needs of single parent families. We hope the UK government will make these a priority and consider the specific needs and realities of single parent families as they implement them."

Becca Lyon, Head of England at Save the Children UK, said:

"Poor access to transport puts families in unfair situations and makes life much harder. Many families can't afford a car or would spend a huge proportion of their weekly budget running one. For those relying on trains and buses, they can be faced with unreliable services and high fares. During this research we heard how parents faced sanctions from the job centre for being late to appointments because of unreliable transport and children using their birthday money to pay for the train to school.

"We fear transport is becoming increasingly inaccessible to families and is an under-explored outcome of the cost of living crisis. It comes up as a major issue time and time again. It's clear that more investment in affordable local transport options is needed to give families more choice about how they spend their money."

ENDS

Becca Massey-Chase and Maya Singer Hobbs, the report’s authors, are available for interview

Case studies and interviews with low-income households may be available upon request

CONTACT

Liam Evans, senior digital and media officer: 07419 365334 l.evans@ippr.org

David Wastell, director of news and communications: 07921 403651 d.wastell@ippr.org

Rosie Okumbe, digital and media officer: 07825 185421 r.okumbe@ippr.org

NOTES TO EDITORS

The IPPR paper, The transport challenge for low-income households, by Becca Massey-Chase, Maya Singer Hobbs, Stephen Frost and Dave Hawkey will be available for download at: http://www.ippr.org/articles/the-transport-challenge-for-low-income-households
Advance copies of the report are available under embargo on request
Figures were estimated using the Living Cost and Food Survey 2022-23
IPPR (the Institute for Public Policy Research) is an independent charity working towards a fairer, greener, and more prosperous society. We are researchers, communicators, and policy experts creating tangible progressive change, and turning bold ideas into common sense realities. Working across the UK, IPPR, IPPR North, and IPPR Scotland are deeply connected to the people of our nations and regions, and the issues our communities face. We have helped shape national conversations and progressive policy change for more than 30 years. From making the early case for the minimum wage and tackling regional inequality, to proposing a windfall tax on energy companies, IPPR’s research and policy work has put forward practical solutions for the crises facing society. www.ippr.org