Londoners face hidden poverty premium, study says

Londoners face a “hidden poverty premium,” according to a study that says low-income households in the capital pay more for everyday goods and services. Research by Fair by Design, funded by Trust for London, found that families affected in Peckham pay an average of £493 more per year than wealthier households for identical items. The gap rises to more than £600 in the worst-hit areas of London, driven by greater reliance on higher-interest credit and extra costs for non-direct debit payments. The report identified food shopping as the biggest factor, with 39% of families relying on local convenience stores rather than larger supermarkets with more competitive pricing. It also said energy and insurance systems continued to penalize poorer customers across Britain after regulatory changes, including prepayment meters costing £129 more annually and motor insurance in deprived postcodes adding £153. Trust for London CEO Manny Hothi called for regulators to consider market effects on poverty.