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

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

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. John Siraut 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.

Figure 1: Household expenditure on transport in 2019-20 prices.

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.

Figure 2: Transport spend by category

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.

Figure 3: Proportion of household transport budget spent on vehicle purchase, fuel, bus and rail fares by household income decile.

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.

Figure 4: Proportion of household transport budget spent on vehicle purchase, fuel, bus and rail fares by age of household reference person.

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

Pandemic impacts fading into wider long-term trends, new NTS reveals

The newly published major tranche of data from the National Travel Survey 2023, is the first to be totally clear of direct effects of the Pandemic and the associated restrictions on activities and travel it brought. These clearly were a major interruption to normal behaviours, but John Siraut believes the new figures suggest that established trends have not been much changed- and probably just accelerated

18 September 2024

Buses: data reveals an unstable and challenging landscape

Tracking bus use has been a significant part of monitoring the impacts of the pandemic, but also the continuing long-term decline in the sector. John Siraut examines the latest annual bus statistics and finds a number of significant regional and local differences, including in the levels of dependence on public funding. He also looks at the amount of concessionary bus travel, the change in fare levels and in drivers wages over the last twenty years.

6 March 2023

National Travel Survey shows still unfinished patterns of change

Each year the Department for Transport publishes its National Travel Survey for England, providing a snapshot of our travelling behaviour; why we travel; for how long; and by what means. There is usually not much change from year to year, but the pandemic has changed our travel behaviour and in this article John Siraut looks at some of those changes between 2018/2019 and 2021.

20 September 2022

Read more articles on TAPAS

Time to end walking’s role as transport’s Cinderella mode

IF WE ARE to genuinely think deeply about the future of transport, let’s start by properly recognising the mode that is used almost universally, is resource-light, carbon neutral, inexpensive, is the most space efficient mode, does not require significant major new infrastructure and is really good for the physical and mental health of the user. And that is walking.

Kris Beuret and Terence Bendixon | 3 February 2025

TAG takes a back seat as DfT joins wider Government investment framework

A WIND OF CHANGE appears to be shaking the tree under which the Department for Transport has long organised its approach to transport decision-making and resource deployment. Over the past year, the new Labour government has been strongly asserting its new missions and values in relation to economic growth and a rebuilding the nation’s infrastructure and social systems to reflect its values, and it means change across all the public bodies at the delivery end of policy.

Peter Stonham | 25 June 2025

Dis-integration: Professionals’ thinking meets political reality

TRANSPORT PROFESSIONALS talk a lot about integrated policy, by which they mean planning and operating the different modes to maximise the overall societal benefit, and the ease and efficiency for individual users in terms of time, cost, comfort, safety and accessibility. It is a persuasive theory, but to understand it requires a considerable grounding in both conceptual and detailed thinking that most non-transport experts simply do not have or even recognise as significant. And examples of how it all works in practice are thin on the ground.

Peter Stonham | 19 September 2023