More than money: The lifelong wellbeing impact of disability benefits

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A new research report by Z2K and Pro Bono Economics urges the Government to prioritise improving access to disability benefits for those whose quality of life depends on this support.

It concludes that failure to do so could exacerbate public health issues and have severe economic consequences.

Disability benefits are a lifeline for many Disabled people in the UK. They provide vital financial support to cover the extra living costs that arise from their long-term conditions, from daily living to mobility.

Having this support is particularly important as Disabled people in the UK tend to have lower incomes and lower wellbeing than average. In other words, not only are Disabled people facing more financial difficulty overall, but they report a lower quality of life.

Existing evidence suggests a positive relationship between income and wellbeing. This implies that any change in income is likely to have an impact on an individual’s overall wellbeing.

Consequently, it is reasonable to expect that any increase in income would translate into a wellbeing gain.

However, when thinking about disability benefits, a relevant question arises: do recipients secure a wellbeing gain valued greater than a simple cash transfer?

The new report says: “We test this question by tracking changes in wellbeing among two groups of Disabled people: those receiving disability benefits and those who may be eligible but are not receiving them. It is expected that disability benefit recipients would have a higher wellbeing improvement than their peers – but is the equivalent value of that boost larger or smaller than the extra cash reaching their pockets?”

It finds that: “By tracking the wellbeing of disability benefits recipients and those who are not receiving disability benefits but may be eligible over time, the findings of this report suggest that receiving disability benefits significantly enhances life satisfaction of recipients, potentially reducing their anxiety levels and improving their wellbeing overall.

“The observed increase in life satisfaction among disability benefit recipients suggests that these benefits mean more than a simple cash transfer to those who receive them.

“This boost in wellbeing can be expressed in economic terms and translates to an average annual wellbeing improvement valued at £12,300 per person, and a potential £42 billion in annual economic benefits if support were maintained for the 3.5 million disabled people currently getting the support.”

“Crucially, when compared with the annual costs of providing this support, estimated at £28 billion a year for this group, the economic benefits seem to outweigh the costs.”

Additionally, the report highlights that the positive impact of disability benefits is particularly pronounced for those with self-reported poor health, highlighting the crucial role these benefits play in mitigating the challenges faced by Disabled people with acute health issues.

The report concludes that: “Today, the state of public finances and the Government’s determination to control public spending might, at first glance, seem to suggest that the government should look to curb disability benefit claims, which are expected to continue to rise in the near future.

“However, results from this report suggest the government should not rush to any decision to reduce claims by restricting Personal Independence Payment /Disability Living Allowance eligibility or introducing further barriers to application. According to our findings, such actions would most likely significantly harm the quality of life of many disabled people in the UK.

“Instead, our findings suggest that improving access to disability benefits could enhance the lives of those who need the support but face barriers to get it. This builds on existing evidence that underscores the need for a review of the claiming process.

“Disabled people have reported that the claiming process is becoming increasingly complex and burdensome, requiring extensive evidence of their disability and causing significant stress. Simplifying this process could make a substantial difference in the lives of those who need support.”

Ken Butler DR UK’s Welfare Rights and Policy Adviser said:

“The new Z2K report is timely as it shows the flawed short-term logic of slashing £3 billion from the UK’s benefits bill.

The Office for Budget Responsibility has already said that proposed work capability assessment reforms would reduce claimant caseload by 37 times more than it will increase employment.

This new report finds that disability benefits provide a boost to the economy and can fuel economic growth.

However, Disabled people have a human right to social security support to avoid poverty and to be able to live independently regardless of whether they are or can be “economically active”.

They should not have to compelled to be economically active by sanctions and benefit cuts but enabled and supported to seek work if on a voluntary basis.

Already 7 in 10 low-income households with a disabled person go without essentials.

The health and wellbeing of Disabled people must be protected and enhanced, not sacrificed to the alter of ill-founded and savage cuts.”

More than money: The lifelong wellbeing impact of disability benefits is available from proeconomcs.com