HomeEconomyHousing, transport, appliances... Low-income households are often victims of additional costs

Housing, transport, appliances… Low-income households are often victims of additional costs

For an identical service, the most modest households tend to spend more than the middle classes.

The poorest households pay more than the others. This is shown this Monday by a study by the Action Tank Entreprise et Pauvreté association. According to this work carried out with the Boston Consulting Group at the request of La Banque Postale, this category of the population must pay additional costs for many daily expenses such as housing or fuel.

“This insidious phenomenon affects many spending categories,” he added.

13% additional cost for accommodation

As for housing, for example, the most modest homes have smaller surfaces, whose price per square meter is more expensive. However, this additional cost of 13% on average is compensated in most cases with housing aid, the study specifies.

For transportation, precarious households use older cars, which consume more fuel, which increases this item of spending by 17% on average.

As for appliances, low-income households spend an additional 28% on laundry on average, due to less efficient equipment or use of a laundromat.

An additional annual cost of 1500 euros

In total, a modest household with average expenses suffers an annual extra cost of about 1,500 euros, which can be reduced to 100 euros thanks to social aid, according to the calculations of this study.

Social assistance allows families to compensate. Some, however, do not start the process to obtain them, the study notes.

Author: NLC with AFP
Source: BFM TV

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