How to reduce the ‘premium’ paid by low income households for fuel, financial services and education is the subject of the Bevan Foundation’s latest report, launched today.
It argues that although the Assembly Government cannot influence household’s income, there is a great deal it can do to make low incomes go further and, in particular, stop low income families being penalised.
Making better use of grants is a key theme. Dishing out relatively small amounts of cash that then subsidise overpriced goods and services is inefficient and achieves little: instead, steps should be taken to link grants with cutting costs, e.g. winter fuel payments and home insulation.
Another key issue is payments: over and again low income households are penalised because they pay cash, often in in small amounts rather than lump sums. Making better use of the post office network, putting cash on the same footing as direct debit payments and fair enforcement of debts are all explored.
And last, the public and community sector – as an important provider of services – needs to lead e.g. by maintaining payments in cash, fair debt collection, negotiating discounts for bulk purchases such as school uniforms, electricity for social housing or insurance, and complying with guidance on poverty.
The project was a partnership with Consumer Focus Wales, National Energy Action Cymru and Save the Children Cymru and was funded by the Welsh Assembly Government’s New Ideas Fund.