Recent Government statistics from the ONS have exposed the extent of motoring costs and what is being called, motoring poverty. There are estimations that show that almost 800,000 families are attempting to run cars that have a disposable income per week of no more than £167. According to these recent calculations, 27% of this total is being used for motoring costs, which include £16 to buy petrol and £8.30 a week for insurance. Road tax also accounts for £2.50 per week and general maintenance £4.80, with motorists also having to allow £10 for the cost of buying a vehicle and for the depreciation. These calculations will heighten the pressure that is on the Chancellor to offer motorists some respite, later this month in his budget.
Chancellor should be doing things to help households with motoring costs
Stephen Glaister who is the director of the RAC foundation, who exposed the figures, said that the Chancellor should definitely be shocked by these figures. He went on to say that it was already clear that transport was the largest area of expenditure in households, though this breakdown has not usually been available. It points out the truth about the extent of transport poverty in the United Kingdom. He explained that of course there is concern about home owners having to spend around 10% of their money on just heating their homes, although to most people transport is seen as an essential item and many of peoples outgoings on getting around come before a lot of other domestic bills.
Unless prices are reduced rapidly, motoring costs will still be a struggle
George Osborne will be delivering his budget soon and is more than likely to tinker with fuel duty rates. People who are already drowning in a sea of motoring costs, cutting a few penny’s off the price of a litre of petrol would help, though to make a real meaningful difference to people on the lowest incomes, rates will need to be cut far more.