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? 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?
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 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.
Given the significant potential boost in wellbeing after receiving disability benefits, it is necessary to explore why someone with eligibility might not already be receiving them. While the specific reasons why these individuals may not be receiving disability benefits can be difficult to pinpoint from the data used in this report, several factors may contribute to this. These include cases in which individuals may not require additional support, lack of awareness of eligibility or complex application processes and unsuccessful claims.
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 PIP/DLA 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.
This report urges the government to prioritise improving access to disability benefits for those whose quality of life depends on this support. Failure to do so could exacerbate public health issues and have severe economic consequences. Fortunately, the state is not alone in this endeavour. The charity sector is already actively supporting disabled individuals to navigate the benefit system. Therefore, fostering collaboration and partnerships with the charity sector is more critical than ever.