Disabled households forced to spend majority of disposable income on disability

March 13, 2025

Social Inclusion and Equality
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A new study from the Irish Human Rights and Equality Commission (the Commission) and the Economic and Social Research Institute (ESRI), published today, 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 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.

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.

Liam Herrick, Chief Commissioner of the Irish Human Rights and Equality Commission stated:

“It is unacceptable that the majority of disabled people live in conditions 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."