Loans for disabled people on low incomes

Living with a disability or long-term health condition often means higher costs: extra heating, specialist equipment, taxis when public transport is not accessible, adapted clothing or a special diet. When income is limited too, a broken wheelchair, an urgent home adaptation or a sudden bill can feel impossible to cover. Some lenders also make applications harder than they need to be, with phone-only processes or rigid checks that do not account for disability benefits.

This page looks at the situation in the United Kingdom. It explains the grants and schemes designed for disabled people, which are often better than any loan, what your rights are when dealing with lenders, and how to borrow carefully if credit is still needed.

Make sure you are claiming disability benefits

Many disabled people on low incomes are not receiving everything they are entitled to. A benefits check with an adviser is often the single most effective step.

• Personal Independence Payment (PIP) in England, Wales and Northern Ireland, or Adult Disability Payment in Scotland, for extra costs of daily living and mobility. They are not means-tested and can be claimed whether or not you work.
• Attendance Allowance for people over State Pension age who need care or supervision.
• Disability-related elements of Universal Credit, such as the limited capability for work and work-related activity element.
• Carer's Allowance for someone who cares for you, if eligible.
• Council Tax discounts, including the disabled band reduction where your home has been adapted.

Receiving a disability benefit can also unlock other help, such as a Blue Badge, a disabled person's railcard or a bus pass.

Grants for equipment, adaptations and mobility

Several costs that people try to borrow for have dedicated funding:

Home adaptations

A Disabled Facilities Grant from your local council can pay for adaptations such as ramps, stairlifts or an accessible bathroom in England, Wales and Northern Ireland, subject to an assessment and, for adults, a means test. Scotland has its own system of grants through local councils. Small aids and minor adaptations are often provided free after an occupational therapy assessment.

Mobility

If you receive the higher rate of the mobility component of a qualifying disability benefit, you may be able to use it to lease a car, scooter or powered wheelchair through the Motability Scheme, with insurance and servicing included. Wheelchair services through the NHS can also provide or contribute to chairs.

Work-related costs

If you are in or starting work, Access to Work can help with equipment, travel and support costs linked to your disability.

Charitable grants

Many charities give grants for specific items, particularly for people with a particular condition or for families with disabled children. National grant search tools and condition-specific charities can point you to them.

Equipment designed for disabled people can often be bought without VAT if you are eligible, which reduces the amount you need to find.

Your rights when dealing with lenders

The Financial Conduct Authority expects firms to treat customers in vulnerable circumstances fairly, and health conditions and disability are included. Under the Equality Act 2010, service providers must also make reasonable adjustments. In practice you can ask for:

• communication in a format that suits you, such as large print, email instead of phone, or a third party speaking for you;
• extra time to read terms or respond to letters;
• a note on your account about your needs so you do not have to repeat your situation each time;
• a fair approach if your condition affects your ability to manage payments.

If you live with a mental health condition and have debts, a Debt and Mental Health Evidence Form completed by a health professional can help creditors understand your situation. In England and Wales, the mental health crisis version of Breathing Space can pause interest, charges and enforcement during treatment.

Borrowing options to compare

If a grant or benefit does not cover the need, look at lower-cost credit first:

• Universal Credit Budgeting Advance or a Budgeting Loan if you receive certain older benefits or Pension Credit. Both are interest-free.
• Credit unions, which accept disability benefits as income in many cases and cap their interest in Great Britain at 3% a month.
• Not-for-profit lenders and charity no-interest schemes in some areas. Our page on loans without interest explains how to find them.

Compare the APR and the total amount repayable, and check what happens if your health changes and you cannot pay for a while. Disability benefits can be reviewed, so plan for the possibility of a change in award.

Risks specific to disabled borrowers

Some sellers target disabled people with expensive finance on mobility aids, stairlifts or adapted vehicles. Get an occupational therapy assessment and check whether a grant or the Motability Scheme could cover the item before signing a finance agreement. Be cautious with:

• doorstep sellers and high-pressure sales visits at home;
• rent-to-own and catalogue credit, where the total cost far exceeds the item's price;
• guarantor loans that put a family member or carer at risk;
• anyone who asks for your benefit details, bank card or PIN as security;
• offers of loans "for people on PIP" through social media, especially if a fee is asked up front.

Always check the FCA Register, and if someone takes control of your money without your agreement, contact your bank and an advice service immediately.

Checklist before you borrow

• Have I had a full benefits check, including PIP or Adult Disability Payment and any premiums?
• Have I asked the council about a Disabled Facilities Grant or occupational therapy assessment?
• Could Motability, Access to Work or a charity grant cover this item?
• Have I asked the lender for any adjustments I need?
• Do I know the APR, total repayable and what happens if my condition worsens?
• Is the firm FCA-authorised and not asking for fees in advance?

Free advice from Citizens Advice, disability charities, StepChange or MoneyHelper can help you weigh up options. For costs linked to health, see help with medical costs and help paying for hearing aids, or our overview of UK loans and social support.