Publication of a 12 point plan to end the poverty premium

Fair By Design published a 12 point plan to end the poverty premium on 13 June 2024, launching it as its 2024 general election manifesto¹. The plan covers the areas the organisation works on, including payments¹.

On payments, Fair By Design says "some payment methods create a poverty premium, meaning people are charged more for the way they spend their own money"¹. It gives three examples: people without bank accounts have no access to direct debits, "which tend to be a cheaper way to pay for bills"; some people "are charged to use fee-charging ATMs because they use cash to budget on a tight income"; and others "are charged more for paying for things like insurance each month rather than all in one go for the year"¹.

The organisation says it is working with the Payment Systems Regulator and Ofgem "to tell suppliers to introduce more flexible ways to pay bills that work for those on low incomes", and is "undertaking research to understand the demand for more flexible ways for people to pay their energy and other bills"¹. Research published in October 2024 found that "being able to pay flexibly and have control over payments is essential for low-income consumers when considering new payment methods", and that while "flexibility is not the main solution for cheaper bills, it is clear it could help people" by allowing smaller amounts or changed payment dates¹.

The plan follows earlier work listed by the organisation.

The sources do not set out the 12 points themselves, and no government response to the plan has been reported.

Why it matters for households

The plan concerns how people pay, not only how much they pay. Households without a bank account cannot set up direct debits, which the organisation describes as a cheaper way to pay bills, so they may face higher costs for the same services¹. Those who budget in cash can be charged at fee-charging ATMs, and paying monthly for insurance rather than annually in one payment can cost more¹. The research on flexible payments concerns energy bills in particular, where the option to pay smaller amounts or move payment dates could help households manage tight budgets, though the organisation states flexibility is not the main route to cheaper bills¹. The plan itself is a set of proposals from a campaign organisation; it does not change any rule or charge by itself.

What happens next

No implementation timetable is given in the published material. The plan was launched as a general election manifesto on 13 June 2024, and the organisation says it continues to work with the Payment Systems Regulator and Ofgem on flexible bill payment for low-income consumers¹.