Report: How UK public transport subsidies entrench inequality

A new report by the Equality Trust explores another aspect of regional transport inequality: the poorest in society are unable to travel as far or as often, limiting their ability to compete with the better off for jobs and decent pay. It ‘reveals how this inequality is embedded within our transport system through government subsidies, further increasing overall economic inequality.’

– In total the richest 10% receive £977.4 million in transport subsidy; the poorest 10% receive just £296.7 million.

– Per household the richest 10% receive nearly double the subsidy of the poorest 10%, £294 per year compared to £162 for the poorest households.

– For the rail system alone the richest 10% receive over three and a half times as much subsidy as the poorest 10%.

– Certain regions like Wales and the North East receive far lower rates of subsidy than regions like London and the South East..

‘Our transport system is a driver of inequality, and societies with high levels of economic inequality have worse health, more crime, less social mobility and lower levels of trust’. It recommends that:

– All government departments should consider whether or not any new policy proposal increases inequality, as part of their cost-benefit evaluation process.

– The Department for Transport, and all other government departments, should review the net effect of their existing policies as a whole on inequality.

– The Government should commission the Office for Budget Responsibility (OBR) to estimate the net impact of its annual budget on UK inequality.