Fuel poverty, Food Insecurity and the Poverty Premium
Low income households also face disadvantages in the marketplace for everyday goods and services, often paying over the odds (known as the poverty premium). GMPA’s research into the potential cost of the poverty premium to low income households in Greater Manchester is detailed below.
Fuel Poverty LA
This chart shows the proportion of households in each Local Authority in Greater Manchester that were fuel poor in 2018. Households are considered to be fuel poor if they have required fuel costs that are above average (the national median level); and were they to spend that amount, they would be left with a residual income below the poverty line. Manchester has the highest rate of fuel poverty in Greater Manchester, with 15.5% of households in fuel poverty. Stockport had the lowest level of fuel poverty with 9.8% of households in fuel poverty.
Fuel Poverty LSOA
This map shows levels of fuel poverty by Lower Super Output Area (LSOA). The map shows that there are areas with higher levels of fuel poverty across Greater Manchester, with a particular cluster of households in fuel poverty to the south of Manchester City Centre, as well as in Rochdale, Oldham and Bury town centres. The LSOA with the highest level of fuel poverty at 40.1% of households is in Rusholme in Manchester.
Food insecurity map
This map displays the estimated percentage of households at increased risk of experiencing food insecurity based on the demographic characteristics of people living in households including low income, lone parent households, low income households with dependent children, people aged 16-64 years who live alone on a low income and those aged over 65 years who live alone. The distribution of those areas most at risk is not even across Greater Manchester with the greatest percentages of areas most at risk concentrated in Oldham, Rochdale, Manchester and Bolton.
This table is taken from GMPA’s poverty premium research, published in November 2018. It replicates the methodology developed by Save the Children and used by researchers and campaigners on several occasions to help illustrate the potential extra costs for everyday goods and services facing low income households in the UK. This version of the illustration found that the extra costs facing a typical low-income family in Greater Manchester could amount to £1096.67 more than households not experiencing poverty. Car insurance and household white goods have the highest poverty premium.
|Typical cost||Cost to low income family||Difference|
|Loan for £500||£500||£757.78||£257.78|
|Household white goods (average cost across multiple items)||£233.50||£451.75||£218.25|
|Annual gas and electricity bills combined||£935.20||£1,077.83||£142.63|
|Home contents insurance||£51.46||£61.33||£9.87|