Tag Archives: money

How are extra costs being reduced for disabled people?

Today (October 19) sees the launch of a new report by the Extra Costs Commission looking at progress made to reduce additional costs for disabled people.

Scope research demonstrates that on average, disabled people spend £550 a month on costs associated with their disability. These costs include things like expensive items of equipment such as powered wheelchairs or screen readers, paying more for energy bills, or facing higher insurance premiums.

Whilst Disability Living Allowance and Personal Independence Payment play an important role in helping disabled people meet some of these costs, this report makes it clear that more work is needed to tackle the financial penalty of disability.

Extra Costs Commission

Addressing the problem of extra costs was the focus of a year-long inquiry from July 2014 to June 2015, the Extra Costs Commission, which identified ways in which government, businesses, disability organisations and disabled people can drive down these costs.

Earlier this year, the Commission reconvened to review the progress made in delivering the recommendations it outlined.

Disabled people demanding more as consumers

The Commission identified that households with a disabled person spend £212 billion a year, the so-called ‘purple pound’. As such, disabled people and their families have the potential to be a powerful consumer base and influence how businesses serve them.

One example of this happening involves Rita Kutt, whose four-year-old grandson Caleb has cerebral palsy. Struggling to find popper vests to fit Caleb, she contacted Marks and Spencer to see whether they could stock these in larger sizes.

This led to Marks and Spencer developing a specialist clothing range for disabled children, which includes popper vests and sleepsuits. These are significantly cheaper than similar items sold by specialist retailers, making a huge difference to families with disabled children who face additional costs.

You can read more about Rita’s story on Scope’s community.

Disability organisations empowering disabled people as consumers

A number of disability organisations have been supporting disabled people and businesses with driving down disability-related costs.

We’ve created a ‘money hub’ with information to help disabled people manage their money more effectively, whilst Nimbus Disability has started to offer discounts to users of its Access Card. Whilst these are both fairly new, disabled people have so far responded positively to both of these initiatives.

Businesses serving disabled people better

Alongside the example of Marks and Spencer mentioned above, Uber has been thinking about how it can meet the needs of disabled people better.

They have developed a new service called UberASSIST for passengers requiring additional assistance whilst travelling. Uber has also introduced wheelchair accessible vehicles to its fleet in London. They plan to grow these services to enable more disabled people across the UK to access them.

There are a number of taxi and private hire vehicle providers that serve disabled people well, and it’s good to see Uber creating even more choice in the market for disabled passengers.

Read more about Kelly Perks-Bevington’s experience of using taxis and private hire vehicles.

What next?

Much more needs to happen to reduce extra costs for disabled people, so it is important that the momentum generated by the Commission is not lost.

As such, the Commission calls upon different groups to build upon progress so far to tackle disability-related costs. For instance, disabled people should continue to raise the profile of the ‘purple pound’, whilst company boards of businesses should act as champions for disabled consumers. A cross-governmental approach is also needed to help drive down the range of additional costs faced by disabled people.

Now that the Commission has ended, Scope will be taking forward the work of this inquiry, with a focus on addressing the extra costs of energy and insurance for disabled people.

For further information, please speak to Minesh Patel, Senior Policy Adviser at minesh.patel@scope.org.uk or on 020 7619 7375.

Helping with the extra costs of disability: our new money information hub

Following the Extra Costs Commission, a year-long independent inquiry into the extra costs faced by disabled people, we’ve been working with the Money Advice Service to develop the information on our website so it has a greater focus on the needs of disabled people as consumers.

The Extra Costs Commission found that disability-specific information can be hard to find on the web unless you know it exists. As a result, we’ve created a new area of our website to provide impartial money management and cost cutting advice to disabled people.

We hope that this new hub helps to filter useful information and that our online community offers a space for disabled consumers to share shopping experiences and tips.

Extra costs of disability

On average, life costs you £550 more a month if you’re disabled. These costs make it harder to save and increase the likelihood of falling into debt. Here’s how our new hub can help:

Managing your money

To help manage the extra costs of disability, here are a few positive steps you can take:

Bank accounts, credit cards and loans

As well as free and impartial money advice, our new money section features video guides on how to choose a bank account and access to online tools that can help you compare prices.

Savvy disabled consumers

We’ve also got money saving tips on a range of consumer issues, including:

Visit our money hub to find out more, or share your own money saving tips on our online community.

Being in control of your own money

For most of us, it goes without saying that we control our own money. We choose when to spend and save, where to keep it and how to manage it.  For many people with a learning disability however this isn’t the case.

Meike Beckford is a Financial Advocate with Dosh, a not for profit company that specialises in supporting people with a learning disability to manage their money. Here she explains more about their recent investigation into banks and banking.

The importance of support

We all need help and support to manage our money, whether it’s a suitable bank account and regular bank statements, or guidance and information about pensions on retirement.

This support is even more important for people with a learning disability and many other financially excluded people. The right information and support enables many more people to manage their own money well, avoiding financial hardship and using their money to have a more fulfilling life.

This support could involve:

  • accessible, easy-to-understand information on money topics
  • financial education
  • maths and numeracy lessons
  • budgeting tools
  • benefits support
  • suitable and adaptable banking products and services
  • financial advice
  • debt management and support

The important thing is that the support is personalised. Not too much so that the person loses their independence and control, but enough so that they can manage their money well and use it in the way they want.

Dosh believes that everyone should have as much control and independence over their money as possible. We work hard to achieve this in our daily support for people, as well as through extra projects to tackle specific problems.

Problems with banking

We recently became aware of problems people have when accessing banking. Our financial advocates reported problems opening accounts, assessing mental capacity and giving proof of identity.. We decided to investigate the problem further and talked to many partner organisations, like Scope, as well as members of the banking sector to see what we could do to make things better.

Our report showed how damaging poor support can be – a lack of accessible information for example can leave someone unable to understand banking or open an account. This leaves them excluded from managing their finances and ultimately, less in control of their money. Without a bank account, people will struggle to receive benefit payments, make savings on bills through direct debits or put money away for the future.

We wanted to improve the situation and empower people to get the support they need, so we recently released the making money easier guide. This guide follows the report and helps people understand how banks should be supporting them, including what the law says they should be doing.

Supporting people to manage their money better

One of our financial advocates started supporting a gentleman in 2012 who was not receiving all of the benefits he was eligible for and as a result he was struggling to pay his bills or live a fulfilling life.

With personalised support, the gentleman now receives all of the benefits and premiums he is eligible for and also has support to make cost savings such as switching to direct debits to pay his bills.

Thanks to this support, he now lives a much better life. He has taken control of his money, paying all his bills and still having some money left for the things he enjoys – he is even planning a holiday to America in the future, as long as he saves enough money first!

Lack of the right, personalised support with money leaves many people financially disadvantaged and excluded. It increases the risk of financial abuse, mismanagement and debt and stops people making choices about their lives. It is essential that disabled people get the right support and advice to be in control of their money. After all, without money, what could we actually do.

More information about Dosh

The second in our series of reports in to disabled people’s living standards is – Priced Out: ending the financial penalty of disability by 2020. The report brings together new research and analysis to investigate the extra costs disabled people face and how to tackle them.

 

Financial advice is changing

The Financial Services Authority (FSA), which is the Government’s financial services watchdog, is informing everyone that the advice given to us by finance providers, including banks is changing. You can read about the changes to financial advice here.

Making decisions about mortgages, pensions and savings is tough enough and we must have complete trust in the advice we get. However, many people have been let down and this is why FSA’s financial advice is changing.

The changes being brought in by them will help you better understand what you’re paying for and to have more confidence in the people advising you.

From 31 December 2012 they are making three key improvements to how you get financial advice.

1. You will know how much financial advice will cost you

Advice has never been for free. You would have been paying for advice that you received from your adviser, through a process known as “commission”, this is where your adviser was paid by the company which provided the investment you bought. We believe this encouraged advisers to recommend products based on what they could earn rather than what’s truly best for you.

So, from 31 December 2012 you will now agree a fee directly with your financial adviser upfront. Therefore, you will know exactly what you are paying for, where your money is going and also that the advice is not being influenced by how much your adviser could potentially earn.

2. You will know exactly what you are paying for

Your adviser will have to explain to you what type of advice they providing you, be it ‘independent’ or ‘restricted’. Advisers who provide independent advice will be able to advise on all investment options that may meet your needs. Advisers who choose not to do this will be offering restricted advice – this is where they are restricted by the companies they can offer you investments with, the product type, or both.

3. Improved professional standards

Investments can be tricky things for us all to understand. So we need those who help us to have the necessary skills. Therefore, we are making financial advisers meet higher professional standards, keeping their knowledge up to date so that they are aware of latest developments in the marketplace for you and sign an agreement requiring them to treat you fairly.

They will be monitoring firms to make sure they keep to these new standards.

They have published a guide to help explain these changes to you. It is free and available to download from the FSA website. Or you can call our Consumer Helpline to order your free copy on 0845 606 1234.