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Estimating the additional costs of living with a disability in the United Kingdom between 2013 and 2016

Author

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  • Lukas Schuelke

    (Barcelona Graduate School of Economics)

  • Luke Munford

    (University of Manchester)

  • Marcello Morciano

    (University of Manchester)

Abstract

In the United Kingdom, more than 20% of the population live with a disability. Past evidence shows that being disabled is associated with functional limitations that often cause social exclusion and poverty. Therefore, it is necessary to analyse the connection between disability and poverty. This paper examines whether households with disabled members face extra costs of living to attain the same standard of living as their peers without disabled members. The modelling framework is based on the standard of living approach which estimates the extra income required to close the gap between households with and without disabled members. We apply an ordered logit regression to data from the Family Resources Survey between 2013 and 2016 to analyse the relationship between standard of living, income, and disability, conditional on other explanatory variables. We find that households with disabled members face considerable extra costs that go beyond the transfer payment of the government. The average household with disabled members saw their weekly extra costs continually increase from £293 in 2013 to £326 in 2016 [2020 prices]. Therefore, the government needs to adjust welfare policies to address the problem of extra costs faced by households with disabled members.

Suggested Citation

  • Lukas Schuelke & Luke Munford & Marcello Morciano, 2022. "Estimating the additional costs of living with a disability in the United Kingdom between 2013 and 2016," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(2), pages 313-327, March.
    • Handle: RePEc:spr:eujhec:v:23:y:2022:i:2:d:10.1007_s10198-021-01366-1
    DOI: 10.1007/s10198-021-01366-1
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    References listed on IDEAS

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    Cited by:

    1. Sean Kiely & Dorothee Buehler & Ute Rink & Kristin Kiesel, 2023. "The effects of disability on households' economic livelihoods and poverty in Vietnam," TVSEP Working Papers wp-035, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    2. Ludovico Carraro & Alex Robinson & Bilal Hakeem & Abner Manlapaz & Rosela Agcaoili, 2023. "Disability-Related Costs of Children with Disabilities in the Philippines," IJERPH, MDPI, vol. 20(13), pages 1-18, July.
    3. Ana Maria Nicoriciu & Mark Elliot, 2023. "Families of children with disabilities: income poverty, material deprivation, and unpaid care in the UK," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.

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    More about this item

    Keywords

    Disability; Standard of living; Equivalisation; Poverty; Welfare state; Extra costs;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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