Average yearly amount of the poverty premium
Amount of UK population living in low-income households
Number of ventures supported by the Fair by Design Fund
People in poverty or on low incomes often pay more for the same goods or services as people who are financially better off. This is called the poverty premium, the extra cost of being poor. Not only do people struggle to buy goods and services in the first place, they often end up paying more for the ones they can afford. According to research by the Joseph Rowntree Foundation, 21% of the UK’s population live in low-income households, so this is an issue that affects a huge number of people.
The Joseph Rowntree Foundation came to us with a range of issues around poverty that they were looking at, and we identified one area where investment could help. Together, we committed to ending the poverty premium by 2028. We sought out the best partners with track records in addressing poverty, establishing a steering group to determine the best way to tackle the issue. The Fair By Design campaign works with regulators, government, business and the social justice sector, to change the system and design out the poverty premium. The Fair by Design Fund provides capital to help grow new and scalable ventures to change the market, creating new products and services that make the market fairer.
The poverty premium is a solvable problem. It shouldn’t cost more to be poor. By collaborating with expert partners, bringing the most relevant experts to the table, generating ideas and connecting capital to where it’s most needed, we can bring about real and lasting change. We can help create a world where people on low incomes don’t have to pay more for things like energy, bank accounts, insurance and loans. We can make the poverty premium a thing of the past.
You might also be interested in
Fair by Design Fund
Venture fund, investing debt and equity in early-stage businesses aiming to eliminate the poverty premium in the UK.
We want to build a venture ecosystem that effectively nurtures and scales innovative ways of tackling social problems.
Creating new ideas
We work with expert partners to create and design new investments.
Whether you are a social enterprise, charity, investor or fund manager, we’d like to hear your ideas about solving social issues.