Transport poverty: hidden in plain sight?

A recent study conducted by a UK think tank found that 5 million people, equivalent to 8% of the UK population, fell below the poverty line, due to the financial burden of transportation costs.

The UK is not alone in this, as other studies from France and Belgium have estimated that around 20% of their populations are considered at risk of being 'transport poor'.

These revelations disrupt conventional understanding of economic norms, revealing a stark truth: the burden of transportation costs can plunge millions into poverty. This isn't a distant possibility; data unequivocally shows that transportation expenses constitute the single largest financial strain for millions of households across the world. Despite this, understanding the financial burden of transport and its linkages with poverty has not received the attention it deserves.

What is transport poverty?

Academia has attempted to understand these linkages through the concept of ‘transport poverty’. Broadly speaking, transport poverty refers to a situation when an individual is unable to fully participate in social and economic life due to constrained means of transport options. It is a complex concept encompassing aspects such as availability of transport options, accessibility, affordability challenges, excessive travel time and unsafe transport conditions. Evidence confirms that inadequate access to essential transport services in any of these criteria has far-reaching implications for individuals and economies. Regardless, there remains a lack of consensus on its exact definition, underscoring its marginalisation in broader discussions.

This neglect is a widespread phenomenon globally. For instance, in spite of the European Pillar of Social Rights recognising transport as a fundamental right, governmental efforts to assess and address transport poverty remain inadequate. Unlike energy or housing, there is no universally accepted approach to gauging the impact of transport on poverty. Ironically, a study by the French Energy Poverty Observatory, "Defining Transport Vulnerability" found that people are more likely to become transport poor than energy poor.

While the neglect surrounding transport poverty is alarming even in developed nations, its impact is exponentially more detrimental in the context of developing countries. Transport poverty hits developing regions harder by compounding existing socioeconomic inequalities.

When an inordinate amount of income goes towards the basic necessity of mobility, severely disadvantaged populations become further entrenched in cycles of deprivation.

Sporadic assessments that do exist only confirm that transport poverty is a potentially grave yet hidden crisis. For instance, a widely accepted threshold identifies households spending over 10% of their income on transport as experiencing transport poverty but in areas such as in Latin America and the Caribbean, a staggering 17% of households (over 31 million) meet the criteria for being transport poor - making it “the developing region with the highest share of total household spending dedicated to transport”. Similarly, in India a recent government survey reflected a sharp jump in average household spending on conveyance. At 14% of non-food expenses, both rural and urban households in the country spent more on travel fare and fuel than on education and healthcare. The rising burden of transportation costs, compounded by widespread access and safety challenges, hinders people's access to vital services such as education, employment, healthcare and recreation. This exacerbates inequality and impedes social mobility, undermining development efforts.

There is a chance to address transport poverty comprehensively

There is, however, a significant untapped opportunity, particularly in developing countries, as they stand at a critical juncture in constructing infrastructure that will shape their future for decades to come. For instance, in India, 70% of India’s future cities projected for existence by 2030 are yet to be built. Moreover, the country is estimated to allocate a substantial 1.7% of its GDP to transport infrastructure this year—nearly double the expenditure of America and many European nations. Amidst this rapid infrastructure development in India, there's a chance to acknowledge and address the complexities of transport poverty comprehensively, which can amplify the socio-economic benefits of these advancements.

For instance, in conventional assessments of transport projects, economic analyses often revolve around metrics like mitigated road congestion, savings in Vehicle Operating Costs (VOC) and Value of Time (VoT). However, widening the evaluation to include elements like enhanced job accessibility, educational reach and reduced transport expenses will give a much more comprehensive understanding of the economic impacts. Similarly, social impact assessment of transit projects typically concentrates on rehabilitating affected populations. Broadening the scope to include aspects such as specific and measurable impact on mobility of vulnerable groups will foster inclusivity in the transport projects. Additionally, the implications of fare policies on the ability of marginalised communities to adopt the system may become clearer when analysed from the perspective of transport poverty.

These indicative measures could be a good starting point, but to achieve change at scale, robust political will and policy mandates will be required.

While there are not many examples, Scotland has attempted to address the issue at least in part through its The Fuel Poverty (Targets, Definition, and Strategy) (Scotland) Act 2019. With targets set for 2040, including limiting fuel poverty households to 5% and extreme fuel poverty to 1%, it serves as a model for other nations. Similarly, acknowledging how transportation costs can restrict access to employment opportunities, Transport for London (2013) offers a travelcardfor use on buses and the Underground which allows travel at half the adult rate to people on Jobseekers Allowance and to those on Incapacity Benefit, Employment and Support Allowance or Income Support.

Learning from existing experiences may be helpful but it's essential to tread carefully when applying these strategies elsewhere, ensuring they align with each country's unique socio-economic circumstances. Nonetheless, transport poverty should no longer remain hidden in plain sight. Through targeted interventions aimed at identifying and addressing transport poverty, governments can unleash transportation's transformative potential, creating a more inclusive society with improved access to essential services and expanded opportunities for all.

Srishti is an Indian career civil servant and currently working as Lead (Strategy) for National Capital Region Transport Corporation (NCRTC), under the Ministry of Housing and Urban Affairs. The views expressed in this blog are personal.