Dreamr’s CEO Mylo Kaye is actively contributing to alleviating economic burdens faced by low-income groups by joining the Fair By Design Fund’s investment team.
The effort to combat the persistent poverty premium is gaining momentum with strategic investments and influential support to drive social equity and change.
Introduction
Mylo Kaye, CEO of Dreamr, has taken a pivotal role in combatting the ‘poverty premium’ by joining the Fair By Design Fund’s investment committee. His contribution is set to influence innovative solutions, ensuring equitable access to essential services for low-income individuals.
The poverty premium affects millions, often forcing those on low incomes to pay disproportionately more for basic services. By investing in solutions to mitigate these extra costs, the Fair By Design Fund aims to pave the way for significant socio-economic improvements.
Fair By Design Fund: A Catalyst for Change
The Fair By Design Fund introduces a transformative initiative, aspiring to eradicate the poverty premium within a decade. It has garnered support from notable institutions such as the Joseph Rowntree Foundation and Big Society Capital. By investing from Seed through to Series A and beyond, the fund is strategically positioned to back companies that promise to disrupt existing market inequities.
The Impact of the Poverty Premium
The poverty premium compels those in poverty to face additional costs averaging £490 annually, sometimes escalating to £1,190. This financial burden originates from inflated prices on essentials like energy and credit, disproportionately affecting nearly 14 million UK residents.
Most affected individuals struggle with pay-as-you-go energy tariffs, expensive financial products, and the absence of affordable insurance options. These factors exacerbate economic hardship, trapping families in a cycle of poverty.
Strategic Investments for a Better Future
The fund targets four crucial areas: energy, finance, insurance, and location-based services. Importantly, 5.8 million households incur higher energy costs due to their inability to switch from pay-as-you-go tariffs. The fund seeks to mitigate such disparities.
Investments will support startups like SMARTprepay, aiming to balance costs between prepayment and credit customers, and JobSkilla, which connects unemployed individuals to free training resources.
Innovative Startups on the Rise
Accelerator-backed startups are pioneering novel solutions aimed at reducing the poverty premium. For instance, Bean empowers consumers to analyse and optimise recurring payments, while We Are Digital focuses on enhancing financial literacy and management.
Credit Kudos is another standout, leveraging banking data to offer fairer credit scoring, thereby facilitating better financial access for underrepresented demographics.
Supporting Low-income Households
Fair By Design Fund’s mission involves offering substantive support to low-income groups through targeted investments in disruptive innovations. By addressing systemic barriers, the fund creates pathways for equitable service distribution.
Their collaborative approach with startups ensures not only financial backing but also comprehensive mentoring, fuelling potential breakthroughs in reducing the poverty premium.
Looking Forward: The Future of Poverty Alleviation
Eliminating the poverty premium requires collaborative innovation and steadfast commitment. The Fair By Design Fund exemplifies how strategic investments can empower vulnerable communities and drive progressive change.
With continued support and pioneering efforts from industry leaders, the journey towards eradicating the poverty premium is both ambitious and attainable.
The ongoing fight against the poverty premium hinges on dedicated initiatives like Fair By Design Fund. As talented leaders contribute their expertise, the vision of economic equality edges closer to reality.