Financial considerations when you give birth to a disabled child

Giving birth to a child is always a costly experience. According to a study conducted by Mothercare, the first year alone can cost up to £3,000 - and it usually gets more expensive as each year passes.

If your child is born with a disability, the costs are likely to be even greater.

• You may need to find extra money to fund care, to purchase specialist equipment or to finance adaptions to your home.
  
• Matters may be complicated if the care your child needs means you are no longer able to work, or have to work reduced hours.
  
• If your child's disability is likely to reduce their chances of getting a job, you will want to make sure their situation is safeguarded for the long term. You will want to be certain that they will be financially protected in the event of your death.

Things to consider

You will need to think about your expenses in both the short term and the long term.

Your short term expenses could include things like a cot, a baby bath, a baby monitor and so on. They might also include specially adapted pieces of furniture and equipment. Your best option is almost always to pay for these from your savings. Many people choose to invest money before having a child so that they have some capital set aside for the initial short-term costs.

If you find that your savings do not cover your initial outgoings, you will need to consider other options:

• a well-chosen loan can be an effective and convenient way of funding purchases
• releasing equity from your home can provide you with a substantial bulk payment at short notice.

Longer term expenses. You will want to ensure that as your child grows older, you have the financial resources to fund them through school, possibly university and beyond. You will want to make sure that if you become ill, unemployed or if you die, your child's needs are going to be met and that they are financially secure.

There are a number of ways you can do this:

• investing wisely, you can build up a nest egg of savings for your child to access in the future. When saving for a child it may be best to choose a relatively risk-free option
• if you have dependents, you will almost certainly want to insure your own life. This can provide some financial security for your family should you die
• if your child is likely to need a high level of costly care which your savings doesn't cover, you may need to consider releasing equity from your home. You can choose to receive regular payments if you wish
li>if your financial situation is difficult and you need money urgently, you may be able to get money from The Social Fund.

Benefits and grants

If your child is disabled, they will be entitled to benefits and grants depending on their level of need and the family's financial situation.

• if the child is over the age of 3 months, they might be entitled to Disability Living Allowance
• if you are spending more than 35 hours a week caring for your child you may be entitled to Invalid Care Allowance
if you find that your income falls below about £8000 p/a, you may be entitled to Income Support or one of a number of other benefits designed for those on a low income
• if you need to make adaptions to your home, you may be able to get a Disabled facilities grant