Between July 2014 and June 2015 a group of 15 business people, consumer affairs experts and economists, including seven disabled people, explored how increased competition and better consumer information in key markets could drive down the cost of the goods and services that disabled people and their families need and reduce the impact of the extra costs of disability.  The Extra Costs Commission made 16 recommendations in June 2015.

Today the Commission has launched a progress review report on how the work towards delivering those recommendations has advanced, and how businesses, government, regulators and charities are responding to and better serving disabled consumers.  It found the following:

• Increased recognition of the ‘purple pound’ by businesses, regulators and government.
• That disabled people needed to be ‘bold and loud’ to get better deals – household names M & S and Uber rise to the challenge.
• Life costs more if you are disabled – on average extra costs add up to £550 per month.

The Extra Costs Commission found that markets and businesses were not often aware of disabled consumers or the extra costs they face. In response the inquiry called for disabled consumers to be ‘bold and loud’.

Today’s progress report shows how well-known brands have risen to the challenge:

• After being contacted by a customer about offering products suitable for her disabled grandson, M & S extended the age range of some of its bodysuits and sleepsuits, and adapted them to make them suitable for disabled children with impairments that require them to wear sleepsuits and bodysuits in a larger size than the baby and child sizes it usually sells. This increased choice and reduced prices.
• Uber invested in 100 wheelchair accessible vehicles. They also worked to ensure that disabled people have access to the same rates as every other passenger.

Disabled people and their families have a combined spending power – known as the purple pound – of over £200 billion a year.

The Commission also found that businesses that weren’t engaging with their disabled customers were missing out on up to £420m a week.

Other successes of the Commission include:

• The Financial Conduct Authority launched a review of the insurance market.
• Parliamentarians called for better regulation of taxis and private hire vehicles and an improved service to disabled consumers.
• Scope worked with Which? to provide consumer rights advice on its website, including information for disabled people about how to complain and make their voices heard.
• Ticket Factory is using Nimbus Disability’s Access Card to allow disabled people to communicate their accessibility requirements when they buy tickets.

Read the Progress Report.

I know from my own personal experience that disabled people often pay more than others for the same goods and services. That’s why I agreed to lead an independent panel of business people – the Extra Costs Commission – on a year-long inquiry into how we can bring down the premium that disabled people and their families pay.

We are taking a close look at which markets could be better at supplying goods and services to disabled people.   We’ve reached the half way stage and today our interim report sets out a blueprint for business to value and serve the so-called ‘purple pound’.

But, first to get an idea of what we are grappling with, let’s take a look at the impact of extra costs on one family.   Thirty nine year old Emily lives in Eastbourne with her husband and four children – Lucy, 16, William, 12, Oscar, six, and Reuben, who’s four. Both the younger boys have autism, and Emily has had Myalgic Encephalopathy (ME) for many years, which means her energy and movement have been limited. She is recovering now, and has recently returned to work, but she still uses a wheelchair for long distances. In every aspect of life her family is trying to meet the extra costs of disability.

Government action to address these extra costs has focused on raising the income of disabled people through the welfare system, through extra costs payments (Disability Living Allowance, Attendance Allowance and the Personal Independence Payment). Until now, very little has been done by anyone to tackle the root causes of the problem – by looking at how to reduce disabled people’s outgoings in the first place.

This is a missed opportunity.

Today’s report makes the economic case for addressing the issue. Disabled people are loyal consumers, but our research shows that they aren’t afraid to take their custom elsewhere when they receive poor customer service. We’ve highlighted that where shops and businesses don’t meet the needs of disabled consumers, they are losing out on £1.8 billion a month that is being passed over to companies who have recognised the potential of delivering to this group.

According to the Department for Work and Pensions, the ‘purple pound’ in total is worth £212 billion a year. In our report, we’ve set out ways businesses can capitalise on this market, by finding out more about disabled people’s preferences and needs, responding to incentives such as accreditation and awards schemes, and creating an affiliate scheme like a Nectar card to help them serve this group more effectively.   The challenge for disability organisations is to increase awareness of the ‘purple pound’ with businesses, provide more information and advice to disabled people to help them make the best value purchasing decisions, and work with disabled people to drive down the extra costs that they face.

It works for everyone. Companies can improve their financial returns, and disabled consumers and their families will get better deals   Our interim report should be seen as invitation to a conversation with all those who might play a role in delivering change.