Disabled consumers continue to face uneven treatment across financial services, with new research highlighting differences in how disability-related benefits are considered in mortgage affordability assessments.
A report commissioned by Fair4All Finance and produced with PwC found that some disability-related benefit payments are commonly accepted by the mortgage providers reviewed, while others are excluded or deducted when assessing affordability.
The research also raised concerns about wider product decisioning and underwriting, with stakeholders suggesting that application processes may not always capture an individual’s circumstances adequately.
They also reported a perception that automated decision-making could make inaccurate assumptions about disabled applicants, potentially resulting in applications being declined, insurance premiums being increased or cover being restricted.
16.8 MILLION DISABLED CONSUMERS
The report, Beyond Uneven Terrain: improving the disability landscape in financial services, estimates that there are 16.8 million disabled people in the UK, with annual spending power of £274 billion.
While it found that financial services providers have made progress on accessibility during the past decade, the level of support can still vary according to the provider, product, channel and customer’s circumstances.
The research identified a further problem around third-party access for customers who need support managing their finances. It found limited options between complete independence and formal legal arrangements that involve a greater transfer of control, leaving some people relying on arrangements such as sharing cards, PINs or passwords with carers or relatives.
DIGITAL ACCESS
Digital services can improve independence for disabled customers, but the report found that security procedures, two-factor authentication, verification processes and changes to apps can create difficulties for people using assistive technology or requiring additional support.
Of 29 financial services providers reviewed, 23 had dedicated online accessibility pages or hubs. However, only nine displayed highly visible evidence of accessibility testing or co-design with disabled people, while seven clearly addressed disability or accessibility in their public reporting.
The report calls for providers to consider the effects of automated decisioning, risk pricing and the treatment of benefit income on disabled people applying for credit and insurance. It also recommends greater use of lived experience when products and services are designed or changed.
Other proposals include exploring whether the voluntary Disability Finance Code could be extended into retail financial services and developing supported-access arrangements that allow customers to receive help without unnecessarily giving up control of their finances.
Kate Pender, chief executive of Fair4All Finance, said: “Financial services are central to everyday life, yet a market that thrives for many continues to leave too many disabled consumers behind.
“Support across the sector remains deeply uneven, and visible commitments too often fail to translate into reliable, everyday outcomes. Designing an inclusive financial system is not just a social obligation, it is an untapped commercial opportunity that could deliver at least an additional £6.4bn annual boost to the UK economy.
“Disabled people deserve a better deal, which means moving permanently beyond reactive adjustments to ensure mainstream products and journeys work effectively for everyone across their entire lives.”
Howard Taylor, director at PwC UK, added: “Disabled people frequently face higher day-to-day costs and lower average incomes, contributing to lower financial resilience, while also encountering barriers when accessing the products, services and support they need.
“While progress has been made in improving the availability and accessibility of financial services, there is more to do. Our report aims to strengthen the evidence base and makes recommendations to support further strengthening tangible action that would help improve outcomes for disabled consumers.”
The research combined a review of publicly available information from 29 financial services providers with 30 stakeholder interviews, 10 subject-matter expert interviews, eight lived-experience interviews and a survey of 102 disabled consumers conducted by Three Hands Insight.
