Our impact goal
We want to see a substantial reduction in the amount of extra money paid by Londoners because of the poverty premium.
The problem we're trying to solve
26% of Londoners experience some form of poverty premium, costing them £370m a year. Some groups are more likely to face a poverty premium than others. For example, Black and minoritised households are less likely to pay energy bills by direct debit, costing them more. Single parents and disabled people are more likely to have pre-payment meters. It costs more for a disabled person and their household to enjoy the same standard of living as non-disabled people or households.
How we think change will happen
Change will require businesses to act differently towards low-income customers. This will mean engaging with businesses and regulators to demonstrate the harms caused by the poverty premium, and how alternative approaches are possible. It will be vital to highlight the disproportionate impact on different types of households.
As our city plays its part in tackling climate change, it’s also vital that low-income households are given practical help with the costs of the energy transition.
What we'll fund
We will fund initiatives, research, and campaigns that have the potential to have impact at scale across the city.
This covers work that:
- Ends business practices that charge low-income customers more than those who are better off and supports alternative business models to grow.
- Exposes the unfairness of the poverty premium and the impact on people in poverty, with a particular focus on the disproportionate impact on different types of households.
- Supports a fair energy transition for low-income households, particularly around household gas and electricity. This may include practical initiatives such as helping the growth of community energy schemes or expanding the use of subsidies or social tariffs.
- Offers solutions to the poverty premium designed and driven by people’s experience of poverty, through an intersectional lens.
What we won't fund
Under our poverty premium priority, we’re focused on funding projects that have the potential to have an impact at scale across London. We want to fund work that engages with businesses and regulators to bring change for low-income households.
This means we will not fund:
- Work that is very localised, such as borough-based debt advice.
- Work that supports people only on an individual level, such as projects which help individuals find alternative ways of managing bills.
- Service delivery projects that respond to the needs of those impacted by the poverty premium, such as food banks.
