Advice on the measurement of the poverty premium across UK markets

The CMA wishes to commission advice on the feasibility of, and approach to, developing a robust methodology for measuring the 'poverty premium' (i.e. the extent to which customers on lower incomes are paying higher prices for goods and services than those on higher incomes, across markets in the UK). 2. We want to have access to measures that will inform our work by identifying markets in which customers on lower incomes are paying higher prices, and providing an indicator of the scale of the harm (or premium) experienced by these customers.

We want to build on existing research and government datasets, but expect the need for new data collection on prices paid by individuals (and households). Such measures, regularly up-dated, could also be used to inform the public debate about the presence and extent of the poverty premium, inform our own prioritisation and to monitor the impact of actions taken by the CMA to improve outcomes for customers on lower incomes. 3.

We are aware that there are challenges to be overcome in designing a robust methodology that works across a number of markets. This is why we wish to commission this work. 4.

We would want the successful contractor to build on existing research and data, and on relevant expertise, to advise on a robust methodology for the CMA to take forward. This advice should set out different options for the CMA to consider and the relative merits of these options. The advice should be delivered by 29 June 2018.