The report, from the University of Manchester shows that lower income households drive 40 percent fewer miles than those in the higher income bracket. Households with an annual income of under £18,125 are driving fewer miles, making fewer trips and are priced out of buying more efficient, newer cars.
Despite this evidence, car tax is still charged at a flat rate which means that lower income households end up paying for wealthier households to use the roads.
Due to the current flat rate of car tax, this means that six million lower income drivers are paying over 212 percent more per mile for their car tax than the wealthiest drivers.
When the driving habits of lower and higher income households were compared, the analysis shows driving distance, frequency and affordability as the key differentials.
Lower income drivers have significantly less impact on UK roads, covering 40 percent fewer miles and making 17 percent fewer trips than those in the higher income bracket.
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Additionally, drivers from low income households are less likely to be able to afford more efficient cars such as electric or hybrid models, with just 22 percent of this group paying the cheapest tax bands.
Because of this research, car insurance company By Miles, are calling for urgent car tax reform.
They are calling on the Government to implement a new pay-by-mile car tax system that would be usage based, and result in cheaper car tax for lower mileage drivers.
James Blackham, CEO of By Miles, urged the Government to implement new measures to protect lower income drivers.
He said: “Lower income drivers in the UK face a triple-lock of hardship at the hands of our current car tax system.
“Despite driving shorter distances, less often and being priced out of more efficient vehicles, these households are being used to subsidise the driving behaviours of much wealthier households.
“It’s not controversial to suggest that those who use the roads the most should shoulder more of the burden when it comes to paying for them.
“We urge the Government to adopt a fairer approach to lower mileage drivers, charging and taxing motorists for the miles they actually drive and rewarding those who drive less.
“We believe a new model would not only save most drivers money, but also encourage and reward people to reduce emissions – however we choose to travel.”
These changes would encourage everyone to drive less, while cutting emissions and helping to build a fairer, greener future for all road users.
Dr Diego Perez Ruiz, report author from Department of Social Statistics at The University of Manchester, said: “This new analysis clearly demonstrates that low-income households are paying a ‘poverty premium’ to use their cars.
“Any future reforms to the Vehicle Excise Duty system should pay close attention to this and aim to alleviate the disproportionate burden placed on poorer families.”