TAPAS.network | 29 April 2022 | Commentary | John Siraut

Cars, trains, buses and flights: How much do we all spend on transport?

Phil Goodwin

Some fascinating figures are revealed by a look at the transport elements of the ONS weekly Household Spending survey- both the balance of different modal categories, and the change over time. here examines the data, and what it tells us about the differences across incomes and age distribution.

THE OFFICE FOR NATIONAL STATISTICS household spending survey provides a detailed snapshot of our spending habits. Figure 1 shows total weekly spending on transport over the last 20 years and as a percentage of total spending. Over that 20-year period, total household expenditure has remained relatively stable. However, the amount spent on transport declined steadily, mainly due to the reducing cost of cars, from nearly £100 a week at the beginning of the Millennium, reaching a low point in 2012 of £71.70. It has risen since then but remains about 20% below its peak. As a percentage of total household spending it has fallen from a high of 17% in 2001 down to 14% now.

ltt851c.2.1

As figure 2 shows, motor fuel accounts for the largest proportion of weekly transport spending (24%), followed by the purchase of second-hand cars at (18%) which is perhaps surprisingly around twice as much as is spent on the purchase of new cars. Vehicle insurance is also a significant cost, accounting for 12% of transport spend. Public transport on the other hand comes out at just 8% of weekly total transport spending. 

ltt851c.2.2

The average household spend data hides a number of variations when income and age are taken into consideration. Figure 3 shows the percentage of household transport budget spent on; car purchase, fuel, rail and bus fares by household income decile. There are some clear and not surprising trends in the data in relation to public transport. Lower income households spend a higher proportion of their transport budgets on buses, although at just 4% it is still very low. This proportion falls to just 1% for the highest income group. While the proportion of household income spent on rail fares starts to fall as income rises but then rises steeply for the highest income households. However, in aggregate the proportion of household spending on public transport for the highest income households, at 8%, is broadly the same as the lowest income ones. With regard to motoring costs, the highest income groups while spending the highest in absolute terms on purchasing vehicles, as a percentage of total transport expenditure they spend the least. For them, fuel costs which account for over 30% of their transport costs is the largest single item. It is notable that higher income households spend more on fuel than car purchase while for lower income households it tends to be the other way round.

ltt845.c.2

The spending patterns based on age are different again. As table 4 shows, the under 30s spend a higher proportion (and in absolute terms) of their transport budget on public transport, especially rail fares. Vehicle insurance is also a higher cost for this age group than all other age groups.

Motoring expenditure mainly relates to the purchase of vehicles except for the oldest and youngest age groups where fuel accounts for more of their budget.

ltt845.c.3

The average household now spends more on air fares (excluding the air fare component of package holidays) than on public transport. Whilst motoring costs account for the vast majority of all households’ transport budgets regardless of income or age.

Statistics available from the ONS Data Set Family spending workbook 1: detailed expenditure and trends.

John Siraut is director of economics at Jacobs.

This article was first published in LTT magazine, LTT844, 29 April 2022.

d5-20220429
taster
Read more articles by John Siraut
ORR reveals huge new rail origin-destination data matrix
In a surprise move, the Office of Rail and Road has published a major new data resource about rail travel. TAPAS's regular contributor of analysis of transport statistical information, John Siraut, takes an initial look at what is available, and what it reveals
Who drives, and how well? A look at the numbers and their variation by gender and age
There are some interesting contrasts in the data for mens’ and womens’ driving activities, and the variations between different age groups. John Siraut takes a look at licence-holding, driving tests, insurance costs and claims levels, and at who gets the most penalty points
Parking revenues and Local Authorities – taking a closer look at the numbers. Westminster, Kensington & Chelsea and Brighton top the lists
Council parking charges hit the headlines from time to time, but what is the true story of the amounts of income the local authorities receive, and their contribution to local transport expenditures? John Siraut has examined the latest figures and finds a few big income numbers, but that for many areas parking management and enforcement is a policy, rather than revenue activity.
Read more articles on TAPAS
Transport – not just carbon hungry
IT IS GENERALLY ACCEPTED that transport-related activity accounts for between 25-30 percent of global CO2 emissions, and the sector is not yet significantly reducing that very material effect on global warming. There is considerable data and research knowledge about the sector’s carbon footprint and contribution to climate change. This is normally related directly to its fossil fuel consumption. Alongside this, transport is also indisputably a very significant consumer of other finite material resources on the planet, yet very few figures are available for this part of its impacts.
What should the new Government do about Roads and Traffic? A Strategy for Truth and Reconciliation
The new Labour administration is faced with making a challenging set of decisions about controversial highway schemes inherited from the previous Government, and setting out a wider framework of future roads and traffic policy, which it didn’t do before the Election. Phil Goodwin argues that a long hard look at the legacy position and establishment of clear set of objectives is needed to anchor decisions going forward. He suggests the establishment of thoughtful and inclusive independent review would really help that process
Who should design and deliver a national road pricing scheme?
Introduction of a new framework for road user charging seems inevitable, given the decline in existing fuel duty revenue and the need to send appropriate signals about the best use of highway capacity and environmental objectives for transport. Though the topic has seemed subject to a pre Election political taboo, there needs to be serious preparatory discussion about the practicalities, believes Richard Sallnow. In this second part of his look at the topic he considers who would be best placed to design, implement and operate a national scheme