Asda Financial Services

Asda Financial Services

December 08, 2011 07:16 ET

Is the UK Fuel Poverty Gap Widening?

LONDON, UNITED KINGDOM--(Marketwire - Dec. 8, 2011) - New research from the Office for National Statistics1 has revealed that the wealthy spend less of their income on fuel duty than those at the opposite end of the economic spectrum.

The research aimed to outline the effect of fuel related tax on the disposable incomes of the nation's road users, and discovered that overall, the least wealthy of the nation's household as defined by total household income paid 3.4% of their earnings on fuel duty. This was compared to an average of 1.9 percent paid in fuel duty by the nation's richest households at the other end of the scale. This disparity was not seen in the middle wage bracket, which spent an average of 2.8% of their total income on fuel duty. Fuel duty accounts for around 60%2 of every approximate pound we spend on fuel in Britain, and with the 3p New Year fuel tax currently being debated in the Commons, it's no wonder road users are scared.

However, these findings only reflected a proportion of income spent on tax. In terms of the actual amount spent on fuel, wealthier users spent more on fuel than those with less disposable income, with the average spend on fuel tax standing at £1,062 and £365 respectively.

These figures reflect the ability of richer households to make more frequent and longer journeys as opposed to poorer families who are undoubtedly beginning to feel the strain of increasing fuel costs and other household outgoings during the tough economic conditions - where unemployment has recently risen to 8.3%; the worst levels since 1996.3

As the colder months approach and the economic grip tightens, these families may also be worrying about how to protect their vehicles throughout the winter. Asda provide a range of breakdown cover options for road users, with home start, recovery and roadside cover available from just £7.50 per month. This affordable cover will suit those feeling the strain from rising fuel costs. Customers can visit the Asda Finance site for more information on Asda's breakdown cover options, which also include European Breakdown Cover.

1 http://www.ons.gov.uk/ons/dcp171776_241843.pdf

2 http://www.bbc.co.uk/news/mobile/business-15462923?psdata=11_3_8_4_9_10__CD11__CK12_14_15_

3 http://www.bbc.co.uk/news/business-15755835

About Asda Breakdown Cover

  • 73% of cars fixed at the roadside*
  • Average response time of 40 minutes**
  • 98% of customers satisfied with our service***
  • Cheaper than the AA & RAC****
  • Pay annually and save £20 on UK breakdown and European cover
* Fix rate of 73.4% based on 19501 invoices during Aug to Oct 2011
** Response time of 41.3 minutes based on 11378 customer questionnaires during Aug to Oct 2011
*** Customer satisfaction of 98.64% taken from 11378 customer questionnaires during Aug to Oct 2011
**** Based on Asda UK Breakdown Cover compared to the nearest equivalent level of cover from the AA and RAC. Competitor's prices include discount available on 01/11/2011 (online and call centre).

Asda also offer Roadside Cover for just £25, which means if your vehicle can be fixed by the roadside, it will be. It's a good value option that lacks many of the options covered by the core Breakdown Cover policy, but means your car will be fixed if possible and towed to a garage within a ten mile radius. As well as the Breakdown Cover and Roadside Cover options, Asda also offer European Breakdown Cover - meaning your vehicle is covered even if it breaks down in one of many European countries.

Contact Information

  • Razorfish
    Jon Beach
    0207 082 1194