Disability price tag 2023: the extra cost of disability

• Context
• The study
• Key findings
• Points to consider

Context

Disabled people face unfair extra costs. The higher cost of specialist equipment, higher usage of everyday essentials and energy, and an inadequate welfare system, are all making it harder for disabled households to meet the extra cost of disability. Disability equality charity Scope, which has published this report, last published figures for the extra cost of disability in 2019. Since then, there has been a global pandemic, a cost-of-living crisis and soaring prices. More households have fallen into poverty and the number of disabled people out of work has increased. These factors have had a huge impact on the lives of disabled people.

Extra costs are defined as the additional amount of money a disabled household would need to have the same standard of living as a non-disabled household. Extra costs do not just relate to money that has actually been spent, but also to purchases and services that disabled households have to go without because their available income has been used up on the basics. Not every disabled household is able to meet the extra cost of disability.

This report is important in that it updates the 2019 calculation of extra costs incurred by disabled people and introduces a more accurate methodology.

The study

The study uses a standard of living approach which compares the financial situation across different households. It allows individuals to state if they can or cannot afford things, rather than rely on an external evaluation. This creates a real measure of the lived experiences of disabled and non-disabled individuals who will have varying and complex lives.

The analysis is based on the Family Resource Survey (FRS), a nationally representative dataset used to provide official statistics on social welfare issues. It uses the 2019/2020 dataset, which is the latest dataset currently available not effected by non-usual household behaviour and financial activity as a result of the coronavirus pandemic. The FRS collects information on material deprivation indicators and is measured through a set of questions asking whether a family can afford an item and has it, would like to have it but cannot afford it, or can afford it but does not want it.

The analysis has been computed at a family benefit unit level as this is the format provided for the material deprivation indicators that are used for measuring the standard of living. Over 19,000 households were interviewed for the FRS between April 2019 to March 2020.

Key findings

On average, disabled households (with at least one disabled adult or child) need an additional £975 a month to have the same standard of living as non-disabled households.

If this figure is updated to account for inflation over the current period 2022/2023, these extra costs rise to £1,122 per month. On average, the extra cost of disability is equivalent to 63% of household income after housing costs. The average extra costs rise to £1,248 per month where there are two disabled adults in the household and at least two children. And for households with one disabled adult, one non-disabled adult and at least one child, the average extra cost is £634. These figures are accounting for disability benefit payments like Personal Independence Payment (PIP), which are designed to help address these costs.

The pressure on disabled households to meet these costs makes it harder to have a good standard of living. It makes it harder to build savings, and it makes it difficult to plan for the future.

Points to consider

• Methodological strengths/weaknesses: The main limitation to this work is that it is based on an existing data set and necessarily involves a number of assumptions. However, there is a detailed technical report to accompany the main report, available to download on the main report website, which explains the decisions that were made and the approach that was taken.
• Applicability: This research will be of interest to disabled people, disability support providers, government, policy makers and anyone who has an interest in issues of disability and equality.
• Relevance: Highly relevant given the finding that the financial penalty for disability persists and that some households are not able to achieve a good standard of living, despite benefits.
• Generalisability: The research is specific to the costs of living for disabled people in the UK, but the issues could be comparable to disabled people in other similar countries.