Social Protection Minister, Heather Humphreys TD, has announced the publication of the Cost of Disability Research Report.
The cost of disability can be measured by the costs faced by people with a disability in their day-to-day lives that others in society do not face (the ‘direct costs’ approach).
It can also be measured by the amount of additional income a household containing a person with a disability would require to achieve the same standard of living as a comparable household that does not contain a person with a disability (the ‘equivalence’ approach).
In order to get a better understanding of the extent and composition of these costs, and the way they affect people differently, the Department of Social Protection commissioned Indecon International Research Economists to conduct an independent Cost of Disability study.
The Programme for Government commits the Government to using the research to properly inform the direction of future policy.
The research finds that there is no one cost but that rather a spectrum of costs that varies across a number of dimensions, including the age of the individual, the severity of disability, as well as the nature of the disability and household type.
While some of the costs reported through the survey are already met by the State, further improvements cannot be delivered through income supports alone but requires a broader perspective covering areas such as employment, housing, transport, education and health.
The report will now be referred to the National Disability Inclusion Strategy Steering Group – chaired by Minister of State with Responsibility for Disability, Anne Rabbitte TD - to consider what actions should follow.
On publishing the report, Minister Humphreys commented:
“I am pleased to publish this long-awaited research into the Cost of Disability in Ireland. This research will assist policy makers in making decisions that affect the lives of people with disabilities and their families.
“As part of this research Indecon conducted a survey of people in receipt of Department of Social Protection disability payments.
“In total, 4,734 responses were received – one of the largest surveys involving people living with disabilities ever taken.
“I am pleased to announce that the report will now be considered by the National Disability Inclusion Strategy Steering Group, which includes representatives of people with disabilities. Recommendations arising from the report will be monitored in conjunction with the various stakeholders through this steering Group.”
Additional costs of disability cross a number of areas of expenditure including:
- Equipment, aids and appliances;
- Mobility, transport, and communications;
- Medicines;
- Care and assistance services, and
- Additional living expenses.
Indecon, using both a direct costs approach and an income equivalence approach and estimated that the overall average annual costs of disability in Ireland ranges from €9,482 per annum to €11,734.
The Government has committed to using this research into the cost of disability to inform the direction of future policy.
Rather than establishing a new forum or process to consider the report’s findings the Government has agreed that the National Disability Inclusion Strategy Steering Group, will consider actions required by government Departments on foot of this report.
The next meeting of the group is on 15 December and Indecon International Consultants will present on the report to the key stakeholders.
The National Disability Inclusion Strategy Steering Group is chaired by Minister of State with Responsibility for Disability, Anne Rabbitte TD.
The Cost of Disability Research Report can be accessed here: https://www.gov.ie/en/publication/1d84e-the-cost-of-disability-in-ireland-research-report/
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Further Information
Department of Social Protection Illness, Disability and Caring Payments
The 2020 Annual Report for the Department of Social Protection indicates that Illness, Disability and Carers programmes are estimated to account for 15.4% of the Department’s total expenditure on social payments, while there was a total of 414,405 recipients of Illness, Disability and Carers payments.
There was €4.7 billion spent on illness, disability and caring payments in 2020, an increase of €264 million (5.9%) compared to 2019. Carer’s Allowance and Disability Allowance accounted for €2.7 billion of this expenditure, recording increases of 7.4% and 6.2% respectively.
The number of recipients on Disability Allowance increased by 5,825 to 152,580 in 2020 (an increase of 4.0%). Since 2011 the recipient numbers on this scheme have grown by 48.3%. Carer’s Allowance expenditure has increased by 66% since 2011.
Disability Allowance
There are currently 154,618 recipients of Disability Allowance. This is an increase of 30% since 2015. The annual expenditure on Disability Allowance for 2021 is estimated at €1.8 billion.
Econometric Modelling
Indecon undertook a statistical modelling exercise in line with international best practice to estimate the cost of disability in Ireland via the ‘standard of living’ approach.
Modelling estimates the level of income at which a ‘disabled’ household would reach the same standard of living as a non-disabled household based on the estimated relationship between the Standard of Living and income.
The Standard of Living index is constructed as a list of common items people lack because they cannot afford them, or where a household is behind on regular bills.
Models control for other relevant household characteristics like gender, unemployment, marital status, tenure status etc.
National Disability Inclusion Strategy
The National Disability Inclusion Strategy 2017-2022 (NDIS) sets out a range of actions to improve inclusion for those living with a disability in Ireland, including in areas such as the delivery of public services, employment and living in the community.
The NDIS was developed in consultation with disability stakeholder groups and wider civil society. It is subject to the oversight of the NDIS Steering Group (NDISSG) which is chaired by the Minister of State with responsibility for Disability and includes representatives of several government departments and agencies and the Disability Stakeholder Group. The NDISSG already operates a reporting system which requires Government Departments and Agencies to detail their progress quarterly.