Disabled people report extra costs in areas including insurance, transport and energy bills yet improved competition and communication could help drive down these costs, a major report has found.
The Extra Costs Commission report had been launched in response to research by Scope, which revealed that disabled people pay a financial penalty on everyday living costs - on average £550 per month.
The findings of the report were revealed at an event in Westminster.
The Commission is made up of an independent group of of 15 business people, consumer affairs experts and economists, including seven disabled people.
This compares with average extra costs payments (Disability Living Allowance and its successor Personal Independence Payment) for disabled people of around £360 per month.
Someone with a neurological condition will spend on average almost £200 a week on costs related to their disability.
Meanwhile someone with a physical impairment will spend almost £300 on costs related to their disability.
One in three disabled people surveyed reported that they spend money on specialised equipment.
However, not all of these extra costs are specific to an individual's impairment
Almost all disabled people report high extra transport costs, most report difficulties affording insurance and many pay more for housing, fuel and energy.
The report stated that "the impact of extra costs is profound. The financial penalty an individual faces impacts on their standard of living and can limit their family life, opportunities to learn, work and participate in society."
Disabled people are less likely to be able to cope with financial shocks and more likely to have to turn to payday loans to help with everyday living, the report said.
The report said that "the insurance industry should make efforts to understand how the market is working for disabled people and take practical steps to support
individuals who are unable to obtain affordable insurance
It also called for the FCA to investigate whether disabled people and similar potentially under-served groups have access to insurance that fairly reflects risk.
However, it is the Commission's view that the insurance industry can do more
to respond to instances where insurance products are prohibitively expensive
for disabled people.
The Commission questions whether insurers who offer services to disabled
consumers are up to date and in touch with information about disabled people
and the risks they represent.
In cases where insurance is too expensive, insurers must do more to
support individuals - it is not enough to simply suggest that consumers need
to be better at searching for product, the report said.
The Commission's inquiry is based on evidence that less competitive markets push up costs for disabled people, who incur the cost of multiple trips or searches to find the product they need.
Disabled people also experience reduced choice or having to buy something slightly different or more expensive, or simply pay over the odds.
Kevin Carr, chief executive of the Protection Review and one of the founders of the Seven Families campaign said: "There's clearly an argument for better state support for disabled people, as well as better co-ordinated services which help them to be as independent as possible.
"The Seven Families project has shown that, with the right financial help and access to services, people can be more independent, live fuller lives and sometimes return to the job market."