Financial planning & state support for the disabled

This content is for information purposes only and should not be taken as financial advice. Every effort has been made to ensure the information is correct and up-to-date at the time of writing. For personalised and regulated advice regarding your situation, please consult an independent financial adviser here at Castlegate in Grantham, Lincolnshire or other local offices.

In the UK, a range of financial support is available for those with disabilities. These can be very helpful when constructing a financial plan for a household. For instance, altering a home so it has a stairlift would be very costly without the Disabled Facilities Grant (DFG). However, you cannot assume that the government will cover all of your financial needs if you - and/or other people in your household - are (or become) disabled. Rather, it helps to have a firm grasp of the state support available to you in 2022, as well as wise steps to take for your own financial plan.

In this article, our team at Castlegate - financial planners in Grantham - offers some insights into this important area. We hope you find this content helpful. If you want to discuss your own financial plan with us, please get in touch to arrange a no-obligation financial consultation:

01476 855 585

info@casfin.co.uk

Key state support provisions

The UK’s disability support system can feel quite overwhelming, as many different benefits are available depending on the individual’s needs and circumstances. For example, if you need help with travel costs, then it may be worth applying for a disabled person’s bus pass via your local authority. If you need to travel for NHS treatment by public transport, moreover, you may want to apply for the Healthcare Travel Costs Scheme (HTCS) to claim a refund of travel costs.

Getting a Disabled Person’s Railcard for 33% off ticket costs may also be an option. Here, you need to meet key criteria to apply (e.g. you receive Personal Independence Payments, or PIP). Another good idea is the Motability Scheme. This helps people with limited mobility to lease a new car, Wheelchair Accessible Vehicle, scooter or powered wheelchair at an affordable rate.

Two other important aspects of state support are help at home and help with care. Regarding the former, you can approach the local authority for a Disabled Facilities Grant to get specialist equipment for your home (e.g. wider doorways and ramps). For the latter, your local authority has a duty to provide care depending on a needs assessment. If you have an unpaid carer (e.g. a sibling or child) who helps you for over 35 hours per week, then he/she can apply for Carer’s Allowance - provided you receive specific state benefits.

Financial planning & disability

A disabled person’s (or household’s) financial plan would do well to take full advantage of the aforementioned and other UK state benefits available in 2022. However, it is still challenging to ensure financial needs and goals are met - especially when a disabled child is concerned. Here, it helps to have a plan for different stages of your child’s life, as this will need to adapt as they get older. For instance:

• Birth. When your child is born, it is often an emotional time as you come to understand your child’s special needs. When you have the headspace, it is wise to consider getting good life insurance to help provide for your loved one(s) in the event of a caregiver’s premature death.
• School. At this stage, your child’s abilities and disabilities are likely to become clearer. Your financial plan will need to account for costs that may not be covered by government support - e.g. medical therapies, babysitters, advocates, legal and financial services. It is a good idea to regularly review your estate plan every 3 years or so, at this point, since your circumstances may change a lot during this time.
• Adulthood. When your child turns 16 their status in the law’s eyes changes, even if their life seems to go on the same (e.g. they still go to school and live with you). For instance, the Personal Independence Payment (PIP) becomes available for those between age 16 and State Pension age. If your child goes to study further (e.g. at university), then here the Disabled Students' Allowance (DSA) will likely be a useful support.

Each stage of your child’s development can feel unsettling as different state support becomes available (or taken away), and your financial planning needs change. Surrounding all of this are key financial planning considerations to discuss with an experienced professional, such as:

• Writing a will. This stipulates what should happen to your assets - and your child - if you die, especially before your son/daughter reaches an appropriate level of independence.
• Naming a guardian. Who will care for your child or dependent if you suddenly died? You will need to find someone you trust, who understands the guardian role and is willing (and able) to take it on in the event.
• Financial safety net. Whilst a lot of financial support is available in the UK, parents of disabled children quickly learn that they need to fight for their child’s finances, treatment and/or therapy. An emergency fund of at least 3-6 months’ living expensive - in an easy access savings account - can provide immensely valuable to help “smooth” over times when support is not immediately forthcoming.

Conclusion & invitation

If you are interested in discussing your own financial plan or investment strategy with us, please get in touch to arrange a no-commitment financial consultation at our expense:

01476 855 585

info@casfin.co.uk