Tackling the Poverty Premium in the UK: from defining the problem to creating change

This year’s hybrid CHASM Annual Lecture will be delivered by Professor Martin Coppack

It costs more to be poor. Whether this means paying more for energy because you can’t afford to use direct debits, paying more for car insurance because of where you can afford to live, or paying more for credit because your income level means you’re judged to be a higher ‘risk’. This is called the #povertypremium, and it has been exacerbated by our reliance on using markets to deliver essentials services without enough checks and balances to protect the most vulnerable. We currently have a market that chases the healthy and the wealthy, whilst leaving the rest to either pay more or become excluded.

A quarter of households experience at least one type of poverty premium in any given area in Britain. Eliminating the poverty premium would put on average £444 back into the pockets of households on low incomes, often without requiring additional funding from the Treasury. In low-income households, even small amounts of extra income can make a difference. Therefore, tackling the poverty premium is a key component of poverty reduction. 

In this lecture Professor Martin Coppack will pull from over five years of experience leading Fair By Design’s campaign to eliminate the poverty premium. He will also talk about how this area aligns with new government plans to address financial exclusion via a new Treasury-led financial inclusion strategy, as well as via a new cross-government strategy to tackle child poverty.

This lecture will discuss:

• What is the #povertypremium and why does it exist?
• The creation of Fair By Design's Theory of Change – its strategy to create policy and practice change.
• The role of research and evidence.
• The importance of partnership working.
• The essential role lived experience plays in tackling the poverty premium.
• Spotlights on insurance, energy, credit and payments.
• Lessons learned.
• Where next for the UK.