Thursday, December 8, 2011

Is the UK Fuel Poverty Gap Widening?

New research from the Office for National Statistics has revealed that the wealthy spend less of their income on fuel duty than those at the opposite end of the economic spectrum.

The research aimed to outline the effect of fuel related tax on the disposable incomes of the nation's road users, and discovered that overall, the least wealthy of the nation's household as defined by total household income paid 3.4% of their earnings on fuel duty. This was compared to an average of 1.9 percent paid in fuel duty by the nation's richest households at the other end of the scale.
This disparity was not seen in the middle wage bracket, which spent an average of 2.8% of their total income on fuel duty. Fuel duty accounts for around 60% of every approximate pound we spend on fuel in Britain, and with the 3p New Year fuel tax currently being debated in the Commons, it's no wonder road users are scared.

However, these findings only reflected a proportion of income spent on tax. In terms of the actual amount spent on fuel, wealthier users spent more on fuel than those with less disposable income, with the average spend on fuel tax standing at GBP 1,062 and GBP 365 respectively.

These figures reflect the ability of richer households to make more frequent and longer journeys as opposed to poorer families who are undoubtedly beginning to feel the strain of increasing fuel costs and other household outgoings during the tough economic conditions - where unemployment has recently risen to 8.3%; the worst levels since 1996.

As the colder months approach and the economic grip tightens, these families may also be worrying about how to protect their vehicles throughout the winter. Asda provide a range of breakdown cover options for road users, with home start, recovery and roadside cover available from just GBP 7.50 per month. This affordable cover will suit those feeling the strain from rising fuel costs. Customers can visit the Asda Finance site for more information on Asda's breakdown cover options, which also include European Breakdown Cover.

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