The relationship between disability, long-term illness and financial wellbeing

As part of this study, we also wanted to examine intersectionality: how disability interacts with other characteristics like gender, parenthood, employment and local area deprivation.

To complete this study, the Money and Pensions Service (MaPS) worked with The Open University Business School’s Centre for Public Understanding of FinanceOpens in a new window and Nottingham University Business SchoolOpens in a new window They analysed data from the Financial Wellbeing Survey 2021; this is a survey of over 10,000 UK adults, including 2,694 people with a limiting long term condition or disability.

For the purpose of this study, disability was measured using two questions developed by the Government Statistical Service (GSS):

• Long lasting health conditions and illnessOpens in a new window 
• Activity restrictionOpens in a new window

Based on these, someone is considered to be disabled if: 

• They say they have any physical or mental health conditions or illnesses lasting or expected to last 12 months or more 
• That any or all of their condition(s) or illness(es) reduce their ability to carry-out day-to-day activities 

Further information on the definition of these terms can be found by following the links above.

Financial wellbeing varies considerably between people with different types of disability. People with cognitive disabilities are most likely to have financial wellbeing that is considerably lower than the UK average. People with physical disabilities tend to have financial wellbeing that is slightly lower than the UK average.

Within the disabled population, wellbeing is lowest for women, single parents, unemployed people and those living in deprived areas. These are some of the same groups that have lower financial wellbeing among the non-disabled population. This suggests that there is some intersectionality, i.e. that these other characteristics can compound the financial impact of disability.

People with a disabled partner or spouse tend to have lower financial wellbeing, even if they are not disabled themselves. This is an area which has not been investigated very much in previous research; we were able to look at this because we also asked about people’s partners or spouses. 

MaPS has published Equality Objectives, which apply to how we interact with our colleagues and how we work with our customers. At MaPS’ we value diversity and see it as key to achieving our mission.

This research is critical in helping us achieve our fourth objective, which is to; “design and deliver high quality services to our customers that take full account of their current and potential vulnerability and their protected characteristics” 

The findings of this report, adds to our understanding of how financial wellbeing varies between different characteristics, and will be used to inform future decision making.