Market economy 'unfair to poor'

Up to ten million live below the poverty line in the UK

Up to ten million Britons have to pay over the odds for goods and services because they can't shop around, the National Consumer Council (NCC) said.

The NCC report says people living below the poverty line have to pay more for food, water, energy, communications, banking and loans.

Lack of available transport and having to live off a cash budget impair their ability to find the best deal.

The NCC report concludes that the free market is failing disadvantaged people.

Poor problems

The poor pay more because life on a cash budget is more expensive Deirdre Hutton, NCC

The report, ' Why do the poor pay more?', suggests that firms "cherry pick" high value customers, whilst excluding poorer consumers and those who are more difficult to supply with goods.

New technology raises further barriers for any customers who lack confidence or basic educational skills, the report adds.

Complex mobile phone and utility price packages are also cited as being particularly difficult for many poorer Britons to understand.

In addition, a lack of public transport can stop consumers from getting out and about to seek advice and find best deals.

"Lack of money isn't the only problem with being poor," Deirdre Hutton, NCC chair, said.

"The poor pay more because life on a cash budget is more expensive. You pay more if you can't bulk buy or afford a weekly shop. And if you can't get around because of a disability or limited transport, you can't shop around for the best deal."

The NCC called on business and government to co-operate to ensure that the poorest members of society are dealt with fairly.