Poorest families on road to ruin

Sep 29 2009 Maurice Glover

Poorest families on road to ruin

BRITAIN'S poorest families would be hardest hit by any further tax demands on motoring by the Government, according to the RAC Foundation.

Households in the lowest income band are already paying a higher proportion of their income on motoring than any other section of society.

Buying and running a car is now costing half those in the bottom 20 per cent of wage earners 17p of every pound - and they drive the oldest and cheapest vehicles, says the motoring organisation.

'Running a car is absolutely vital for the majority of people in this country, and while wealthier members of society spend more on motoring in absolute terms, it is the poor who pay most as a proportion of their incomes,' saya RAC Foundation director Professor Stephen Glaister.

'This make it nearly impossible for them to trade down during times of financial hardship.'

Speaking as the charitable organisation published the findings of a report on low income motoring, Prof Glaister added: 'While ministers are urgently looking for ways to fill their financial black hole, they must resist the temptation to raise motoring charges through the roof.

'These are already an unfair burden on the least well-off and increases would affect them disproportionately. Given how much those on the lowest incomes spend on cars and how reliant they are on them, it would be grossly unjust to penalise them further.'

The RAC report shows that cars feature in 49 per cent of low-income households - up from only five per cent in 1960 and people in lower income groups make more car-sharing journeys.

'People might expect those on lower incomes to try to save money by switching to public transport but this is not feasible for most. Car ownership is not an indulgence - it's a necessity and the Government must recognise this,' said Prof Glaister.