The economic value of disability benefits outweighs the cost, a new report by economists at Pro Bono Economics (PBE) has found.
As the government prepares to set out its reforms for health and disability benefits in early 2025, PBE’s report suggests that making Personal Independence Payments (PIP) and Disability Living Allowance (DLA) harder to access is “counterproductive, costly and a health risk”.
The ‘More than money: The lifelong wellbeing impact of disability benefits’ was published by think-tank PBE for UK anti-poverty charity Z2K.
The report claims supporting people’s wellbeing would be worth £42 billion, outweighing the £28 billion in admin costs of disability benefits. PBE said for every £1 spent on disability support, there is an economic benefit in wellbeing of £1.48.
Z2K’s director of policy and campaigns, Ayla Ozmen, said spending on disability benefits should not be seen as “a drain on public finances, but as an investment in economic growth”.
However, the economists a PBE say that there is a barrier to claiming benefits, which means people eligible for support are put off applying, and are “suffering from poorer health and poorer finances as a result”.
The report said people claiming PIP and DLA experienced high levels of stress and a sense of dehumanisation in trying to prove they qualify for the support, “exacerbating existing health conditions and hindering quality of life”.
PIP application process “not fit for purpose”
People with epilepsy often report challenges in applying for PIP, with the system being called “chronically flawed” and “not fit for purpose” by Epilepsy Action.
Previous surveys have revealed that barriers included assessors not understanding epilepsy for 82% of people, and not taking medical records into account, reported by 78% of people.
People also found their answers weren’t recorded accurately and the PIP application form didn’t allow them to fully explain their condition.
Of those who were successful in claiming PIP, 63% reported that the money they received was not enough to cover their extra living costs. Disability charity Scope has calculated that disabled people face, on average, extra costs of £583 a month.
People described an increase in seizures from the stress. Responding to the survey, Hayley said: “This whole process is more stressful than I care to experience as my main trigger [is] stress. How can I not be stressed at the idea of losing my home, my health and my independence and much more?”
The report warns that government plans to reform the disability benefit system by changing eligibility criteria, redesigning the PIP assessment or replacing cash payments with vouchers could make the system even more inaccessible.
It says this could worsen the quality of life and financial outlook of applicants, and on a broader public-health scale, could “exacerbate public health issues” and result in “long-term economic consequences”.
“Misses the bigger picture”
Matt Whittaker, CEO at PBE, said the value of benefits goes beyond helping disabled people offset the extra costs of living with a disability. “We now know that they do so much more: boosting the mental wellbeing and life satisfaction of recipients to a level well beyond the cash cost of delivery.”
Ozmen added: “These findings show that the narrow focus on the rising cost of disability benefits misses the bigger picture.
“Instead of focusing on how to make short-term savings by reducing the financial support for disabled people the government needs to recognise the wider economic gains of disability benefits and instead concentrate on ensuring support is available to everyone who needs it.”
Alison Fuller, director of health improvement and influencing at Epilepsy Action, said: “People with epilepsy do need more support to find and stay in work. But this shouldn’t be done through cuts to benefits that help them with their quality of life and independence.
“We also shouldn’t forget that PIP is paid to help people with a disability to offset the extra costs of living with the condition, so claimants don’t have to be out of work to receive it – the rhetoric that cutting benefits will help more people into work is far from helpful.
“It can already be tough for people with epilepsy to obtain PIP, with some of our supporters saying they felt really alienated by the process and having to ‘prove’ they qualify for it.
“And above all, people with a disability who receive benefits need them because their cost of living is much higher than a person without one. They shouldn’t be punished for having a long-term condition, or being made to feel like their quality of life can be sacrificed to make ‘savings’.
“Any measures to increase the number of people with a disability, like epilepsy, in work need to tackle the other barriers they face. Discrimination, lack of awareness and unwillingness to make reasonable adjustments – these are the key issues to address.
“We will monitor any proposed changes closely, and work to raise any issues with MPs and the Department of Work and Pensions.”
The report, ‘More than money: The lifelong wellbeing impact of disability benefits’, is available on the PBE website.
PBE aims to tackle low personal wellbeing in the UK through economic analysis and unique insights from connections with the social sector.
We want to make sure that we are standing up for people with epilepsy and making sure the government knows the difference these benefits make.
If you get disability benefits, we want to hear about how it helps you and what impact potentially losing them will have. Please share your experience with us by emailing campaigns@epilepsy.org.uk