Affordable mobility under pressure: findings from KiM and Nibud research

The affordability of mobility is a growing problem in the Netherlands. Two important reports on the subject have appeared in recent months. On 27 August 2024, the Netherlands Institute for Transport Policy Analysis (KiM) published a report covering a broad range of transport expenditure and how affordability differs between groups. A more recent report by the Mobiliteitsalliantie, produced with Nibud and published on 1 October 2024, focuses on affordability for households with a typical income. Although the studies take different approaches, both reveal increasing pressure on the affordability of mobility.

This article explains the key findings of each report, followed by a discussion of their similarities and differences and a summary of the conclusions and recommendations.

Findings of the KiM report

The KiM report examines the affordability of mobility for different groups in the Netherlands. It finds that transport costs rose by almost 30% between 2015 and 2023, slightly above inflation, which was approximately 26% over the same period.

Around 1 in 10 people in the Netherlands struggles to afford transport. This particularly affects people on low incomes, single-parent families, unemployed people and households in less urban areas.

Dutch households spend an average of 14% of their income on mobility, with private vehicles accounting for a substantial share. These affordability problems affect people's travel choices and can lead them to miss social activities or face other restrictions in daily life.

The report identifies several possible approaches, including:

1. General income policy:
   • Improving the purchasing power of people on low incomes to reduce affordability problems.
   • Targeted income support for groups vulnerable to transport costs.
2. Targeted discounts and subsidies:
   • Financial measures for specific groups requiring additional support.
   • Discounts on transport costs for groups such as people on low incomes and people with mobility impairments.
3. Encouraging affordable transport options:
   • Encouraging affordable, accessible forms of transport such as public transport, shared mobility and cycling.
   • Expanding the coverage and quality of public transport services, particularly in less urban areas.
4. Effective spatial planning and proximity:
   • Bringing homes, workplaces and amenities closer together to reduce journey distances and costs.
   • Planning residential and employment areas in a way that better meets mobility needs.
5. Improving public transport provision and accessibility:
   • Improving the reach, frequency and affordability of public transport.
   • Better public transport access for older people, people with disabilities and rural residents.
6. Encouraging active mobility:
   • Investing in cycling and walking infrastructure to promote sustainable, affordable transport.
   • Integrating shared bicycle and scooter systems for short journeys.
7. Innovative mobility solutions:
   • Supporting new mobility services such as shared cars, Mobility-as-a-Service (MaaS) and electric vehicles that contribute to cost-effective, sustainable mobility.
   • Making it easier to switch between modes of transport for a better travel experience.
8. Better information and awareness:
   • Communicating clearly about transport costs and alternative options to encourage informed mobility choices.
   • Education about mobility options and support in finding affordable transport for different groups.

Findings of the Nibud report

The report by the Mobiliteitsalliantie and Nibud focuses specifically on mobility affordability for households with a typical income (€44,000 gross per year). Its main finding is that these households are between €200 and €900 short each month of fully covering their transport costs. Mobility costs have risen sharply since 2015, particularly because of higher fuel prices and other everyday transport expenses. Households therefore have to make spending choices, often restricting their freedom to travel and participation in social activities. This directly affects their well-being and health.

The Mobiliteitsalliantie and Nibud make the following recommendations to address this problem:

1. Tax provisions and travel allowances:
   • Employers can make better use of existing tax provisions to offer more attractive travel allowances for all modes of transport, including cars, bicycles, scooters and public transport.
   • Particular attention should be paid to low-income workers, for whom commuting allowances are often not standard.
2. Improving spatial planning:
   • Bringing homes, workplaces and amenities closer together to shorten journeys and reduce travel costs.
   • Public authorities play an important role in arranging employment, housing and leisure facilities thoughtfully to positively influence travel behaviour.
3. Awareness of mobility costs:
   • Households need to understand their transport expenditure to make more informed travel choices.
   • A great deal of information about mobility costs is available, but it needs to be easier to access and presented more clearly.
4. Encouraging sustainable, affordable mobility:
   • Expanding the availability of sustainable transport, such as electric bicycles and shared mobility, to offer affordable alternatives to long car journeys.
   • Promoting sustainable transport solutions with a focus on low costs and environmental benefits.
5. Strengthening affordable public transport:
   • Making public transport more affordable and accessible for all income groups.
   • Improving public transport coverage and reliability so that it becomes an attractive alternative to private transport.

Differences and similarities

Both reports address mobility affordability, but each has its own approach and target group. The KiM report takes a broad view and analyses how different groups in the Netherlands experience transport costs. Its proposed solutions aim both to improve purchasing power and to make mobility more affordable in a broad sense, including public transport, shared bicycles and spatial planning.

By contrast, the Mobiliteitsalliantie and Nibud study focuses on households with a typical income and the financial pressure they experience from mobility costs. Its solutions mainly concern improving travel allowances, increasing understanding of the true costs of transport and encouraging thoughtful spatial planning to shorten journeys.

Despite these different approaches, there are clear similarities. Both reports highlight the sharp rise in mobility costs since 2015, particularly for lower-income groups, and stress that these costs have a significant impact on freedom to travel. This leads to choices affecting social participation, access to work and overall well-being. Both reports also recognise the need for a more integrated approach to keeping mobility affordable.

Conclusions and recommendations

Both reports emphasise the need for an integrated approach to improving mobility affordability. This involves not only direct financial assistance and income support, but above all structural measures that remain effective over the longer term.

The solutions focus on:

• Making better use of tax provisions: Using existing travel-allowance arrangements to their full potential can reduce commuting costs, particularly for lower-income groups.
• Investing in affordable mobility options: Encouraging accessible, affordable transport, such as public transport, shared bicycles and other forms of sustainable mobility, is a crucial step. This can help vulnerable groups find affordable alternatives to the car.
• Thoughtful spatial planning: Bringing homes, workplaces and amenities closer together reduces journey distances and travel costs. Good spatial planning directly contributes to affordable mobility.
• Awareness and understanding of mobility expenditure: Better insight into transport costs is essential. Households need to be able to make more informed choices about their means of transport and understand how mobility spending affects their budget.

All these elements need to come together in broad, coherent policy. Short-term relief is needed for households struggling with high mobility costs, alongside long-term action to develop a sustainable, affordable mobility system accessible to everyone. A coordinated approach helps keep mobility affordable, sustainable and suited to the needs of different groups in the Netherlands.

📄 Read the full KiM report here KiM brochure on affordable mobility

📄 Read the full Nibud report here Nibud mobility study