The power of the purple pound explained
At SPECTRUM we have talked about the spending power of Disabled People for a very long time.
The point being that there are a lot of Disabled People in the UK, they spend money – and no business, big or small (profit making or not-for-profit), can afford to ignore THAT many people, and THAT much ££££££.
As long ago as maybe 2010, Disabled People and others started to try to compare the spending power (and therefore influence) to other groups of people. For Instance, the spending power of Older People is usually referred to as the Grey Pound, or Silver Pound.
In the last few years the spending power of Disabled People has become known as the Purple Pound
In the UK, it is thought that some 7 million Disabled People people are of working age, and overall there are 12.9 million Disabled People in total in the UK. This all adds up to an awful lot of spending power!
The “purple pound” is reckoned to be worth around £249bn to the UK economy.
Do disabled people have much spending power?
The UK’s Disabled People are said to have disposable income collectively worth nearly £250bn. Campaign groups regularly cite this figure and find it useful to remind businesses and politicians that Disabled People are a sizeable economic, and political force and should not be forgotten.
Disability consultant Mary-Anne Rankin says that businesses should think inclusively from the very beginning of any product or service they’re starting. She says:
“You’ve got to think about the widest possible usage of your services and explore innovative ways of enabling everybody to benefit from them. Because after all if your customers can benefit you’re going to make more money.”
As with why it is the colour purple (see below), similarly many people scratch their heads as to how the £BN figure was derived. All seem to agree it came from the DWP in 2004, but even they say the maths has been lost in the 10 years since it was first suggested. DWP says it was created using raw data from the updated Disability Discrimination Act in that year, alongside data from the Family Resources Survey of 2002-2003.
Whatever the variously quoted £BN’s, the fact is that we are talking a huge amount of money.
How does the Purple Pound compare to other groups?
- Black and ethnic minority spending power, £300bn – 12% of the population of the UK, according to the Institute of Practitioners in Advertising, IPA, 2012.
- Consumer power of the gay community, £70bn to £81bn – thought to be 6% of the UK, according to OutNow Consulting, 2007.
- Overall UK disposable income of its 25 million households plus non-profit sector, 1.078 trillion pounds, according to the Office for National Statistics, ONS, 2012.
If you would like to read more – including why it is called the Purple Pound, follow the following links:
- The power of the ‘purple pound’ explained in video: http://www.bbc.co.uk/news/business-39040760
- Why is the disabled pound purple?: http://www.bbc.co.uk/news/blogs-ouch-25812302
- Ouch disability talk show 104: Purple people: http://www.bbc.co.uk/news/blogs-ouch-25767082
So – there you are – The Purple Pound