New IHREC and ESRI study highlights poverty faced by disabled households
A new study, Adjusting Estimates of Poverty for the Cost of Disability, published today by the Irish Human Rights and Equality Commission (the Commission) and the Economic and Social Research Institute (ESRI), explores the cost of disability in the Irish context. The study’s findings show that households with a disabled member face significant financial burdens related to disability and have very high at risk of poverty (AROP) rates. Households affected by disability are more likely than other household types to be at risk of poverty. However, this finding does not account for the fact that disabled households also have higher consumption needs (such as healthcare, transportation, etc.) than other households, compounding their risk of deprivation. The findings paint a stark picture for disabled households. The study finds that households with a disabled member have a lower standard of living than those without. In income terms, the cost of disability is estimated to be 52-59% of disposable income for disabled households. This means that households with a disabled member require, on average, 52-59% extra disposable income, to achieve the same standard of living as a similar household with no disabled members. For households with a member who has severe limitations, the cost of disability can be as high as 93% of their disposable income. The evidence from this study is clear, disabled individuals and their households experience a double penalty to their living standards as their labour income is lower and consumption needs are higher. The study highlights the need for more reflection on the consumption needs of disabled individuals and households to accurately capture living standards. Liam Herrick, Chief Commissioner of the Irish Human Rights and Equality Commission stated:
“It is unacceptable that disabled people live at a much higher risk of poverty in Ireland. The State is obliged to actively support and resource disabled people to live independently, including through the provision of person-centred financial supports. This research provides clear evidence of the significant and unacceptable financial burdens carried by disabled people, and their households, and I encourage the State to work with disabled people to ensure the cost of disability is effectively offset.”
Co-author of the report, Agathe Simon, of the ESRI said:
“Income poverty rates are substantially higher among disabled people due, in part, to their lower employment rates. The consumption needs of disabled households are also higher, on average, leading to a double penalty in living standards.”
Co-author of the report, Theano Kakoulidou, of the ESRI said:
“One way to address the higher rates of income poverty among disabled people is by removing barriers to work that they and their family members face. Income poverty could also be reduced by directly increasing targeted welfare payments or introducing a ‘cost of disability’ payment.”
Some of the key findings include:
- Using a Standard of Living Deprivation indicator, the study finds that households with a disabled member have a lower standard of living than those without. In income terms, this means that the cost of disability is between 52%-59% of disposable income for disabled households. The study determines that the average weekly household disposable income for disabled households is €944, meaning disability costs between €488-€555 per week, on average.
- The cost of disability is strongly related to the severity of disability, ranging from 41%-46% (€384-€434) of disposable income for those with some limitation to 83%-93% (€786-€875) for those with severe limitations.
- The study finds that the at risk of poverty (AROP) rate is substantially higher for disabled people, sitting at 24%, compared to 10% for non-disabled people, when measured in the usual way. However, when the average estimated cost of disability is deducted from the disposable income of people living in households affected by disability, their AROP rate increases to between 65%-76%.
- Deducting the cost of disability also increases the intensity of poverty for disabled people, as measured by the poverty gap, raising from it from 4% to 22-28%. This illustrates that the impact of the cost of disability can be seen across multiple metrics.
ENDS Read Adjusting Estimates of Poverty for the Cost of Disability For further information, please contact: Sarah Clarkin, IHREC Communications Manager, 01 8592641 / 087 4687760 sarah.clarkin@ihrec.ie Prof. Karina Doorley (Associate Research Professor, ESRI) Karina.doorley@esri.ie 083 8778050 Follow us on twitter @_IHREC
Editor’s Note:
- This study uses the Irish Survey of Income and Living Conditions (SILC) and a Standard of Living (SoL) approach to estimate the cost of disability. A demand system approach is also used, in conjunction with the Irish Household Budget Survey (HBS), to derive an adjusted equivalence scale for Ireland to account for the different consumption needs of households with and without disabilities. Adjusted at-risk-of-poverty rates for Ireland are calculated based on these two approaches.
- The AROP rate is calculated as the number of individuals with disposable income less than 60 per cent of the median disposable income, adjusted (or ‘equivalised’) to account for household composition. The poverty gap is estimated by evaluating how far, on average, the incomes of the poor are from the poverty line.
- “Adjusting estimates of poverty for the cost of disability” by Prof Karina Doorley, Dr Theano Kakoulidou and Dr Agathe Simon of the ESRI is available online on the Irish Human Rights and Equality Commission website at www.ihrec.ie and the ESRI website at www.esri.ie.
- The report “Adjusting estimates of poverty for the cost of disability” was prepared as part of the IHREC/ESRI Research Programme on Human Rights and Equality. It is the twelfth study published from the programme and is jointly published by The Irish Human Rights and Equality Commission and the Economic and Social Research Institute.
The Irish Human Rights and Equality Commission,
The Irish Human Rights and Equality Commission is an independent public body, appointed by the President and directly accountable to the Oireachtas. The Commission has a statutory remit set out under the Irish Human Rights and Equality Commission Act (2014) to protect and promote human rights and equality in Ireland, and build a culture of respect for human rights, equality and intercultural understanding in the State. As part of its statutory remit, the Commission has a specific function to work towards the elimination of discrimination.
The Economic and Social Research Institute,
The Economic and Social Research Institute is an independent research institute working towards a vision of ‘Informed policy for a better Ireland’. The ESRI seeks to support sustainable economic growth and social progress in Ireland by providing a robust knowledge base capable of providing effective solutions to public policy challenges. The ESRI does not take institutional policy positions.