Article written by Kellands Hale, our preferred independent advice firm.
This article is not intended to be financial advice to any individual. The views expressed are those of the author and Moneyfactscompare.co.uk does not endorse the content.
In the UK, there are several measures in place to ensure those with disabilities are not financially disadvantaged. However, this aid may not always cover exactly what a person needs – and unfortunately, this may mean that living with a disability has an impact on their finances.
If you or someone in your family is living with a permanent disability, or becomes temporarily impaired after a health event, it is crucial to understand:
- The potential impact that developing a disability may have on your money
- The financial aid that might be available, even to those with significant wealth
- The help and support that a financial planner could offer to those living with disabilities.
Nearly one-fifth of people in England are living with a disability
According to the Office for National Statistics (ONS), the 2021 Census revealed that 17.7% of people in England and 21.1% of people in Wales were disabled.
In England, 7.8% of women and 7.1% of men said they were limited “a lot” by their disability. Understandably, the largest proportion of those with lived experience of disability were over 70 years old.
Although the overall percentage of people living with disabilities has decreased since 2001, the ONS says it is important to remember that nobody is immune to disability.
So, even if the following information does not apply to you right now, gaining an understanding of the financial aspects could prove invaluable for yourself, a friend or a family member in the future.
How a disability can impact your finances
Living with any form of impairment could cause your money to be depleted more quickly.
While there are support measures you may be able to access, we outline four ways that your wealth could be negatively affected by a disability.
1. Working part-time or stopping work altogether
If you began living with a disability through an illness or injury, your working life may change as a result. This could include reducing your hours, changing jobs to suit your accessibility needs, or even stopping work altogether.
If your spouse or another dependant also needed care, you might reduce your working hours to assist with this and face a reduction in income as a result.
2. Modifying your home to fit your needs
Designing your home to better take care of your needs could require serious financial commitment. For instance, if you began using a wheelchair, you may need to renovate your home to accommodate this.
Similarly, a person living with a cognitive impairment could require additional measures at home to improve their safety, including introducing labels to cabinets and doors, for example.
The cost of modifying your home to accommodate your disability needs can vary widely, depending on what is required.
3. Taking transport
Living with a disability may mean you are unable to drive a car or take public transport. As such, you might rely on taxi services to get around.
4. Paying for care
If you or a loved one needed help day-to-day, you might consider employing care staff to help with your needs. There is a wide range of care available in the UK, from supported living facilities to at-home care.
According to Age UK, the cost of at-home care typically sits at £25 an hour. As such, employing a full-time carer could cost tens of thousands of pounds a year, which may place financial strain on your family if you were to fund this yourself.
Alternatively, carehome.co.uk says that, as of January 2024, the average weekly cost of live-in care is £760 for residential care, and £960 for nursing care.
Of course, these are significant expenses to take on, but there are funding options available that could help cover some (or all) of the care that you need.
Accessing financial support
There are several financial support measures that disabled individuals in all wealth brackets may be able to access.
Both your local council and the NHS have measures in place to financially support those living with disabilities. While some are means-tested, others are not, so even those with significant wealth may be able to gain Government funding to help support themselves or a loved one with a disability.
The benefits you or a loved one could access include:
- A Personal Independence Payment (PIP) to help fund extra living costs, such as taking taxis if you were unable to drive. You may be eligible for PIP even if you are employed and have other savings.
- The Employment and Support Allowance (ESA) if you are under State Pension Age and have an impairment that affects your ability to work. The ESA is available for both employed and self-employed individuals.
- The Attendance Allowance which provides funds for those over State Pension age who have a disability that requires someone else to help them with daily tasks.
- The Disability Living Allowance (DLA), providing additional funding to families who have a child, or children under the age of 16, living with disabilities.
- The Carer’s Allowance if you care for someone for more than 35 hours a week who receives State Benefits for their disability.
These are just a few of the several forms of funding for which you might be eligible.
It is important to note that your impairment does not have to be permanent to receive funding. Those who may be able to access these support measures range from:
- Those who are diagnosed with cancer or another serious illness
- Someone recovering from an injury that has affected their health
- Stroke survivors, and those living with acquired brain injuries
- Those with reduced mobility
- Anyone diagnosed with a mental illness that affects their ability to work or care for themselves.
