Fresh data from the Department for Work and Pensions (DWP) has ignited a critical debate on disability benefits, revealing a stark standstill in disabled employment and prompting calls for a fundamental overhaul of the support system.
A Stagnant Employment Landscape
The Work Foundation has sounded the alarm, reporting that 52.8 per cent of disabled people are currently in employment, a figure that has shown no improvement since 2019. More concerning is the widening employment gap between disabled and non-disabled workers, which has grown from 28.8 per cent to 29.7 per cent.
Ben Harrison, Director of the Work Foundation, stated that "disabled people continue to face stark and significant disadvantages in the labour market." He warned that employers are missing out on the talent of millions and highlighted that "greater flexibility is a key enabler for disabled people to progress in their careers."
The Human and Fiscal Cost
The financial implications are substantial. The Office for Budget Responsibility (OBR) estimates disability benefits spending will be £39.1 billion for 2023-24, with a forecasted rise to £58.1 billion by 2028-29. This data has sparked discussions about potential cuts to benefits like Personal Independence Payment (PIP).
However, David Southgate, Policy Manager at the disability equality charity Scope, strongly cautioned against this approach. "Cutting disability benefits would have disastrous consequences for disabled people," he said. "Life costs a lot more when you're disabled, on average by over £1,000 every month. Benefits like PIP are a lifeline."
A Call for Collaborative Reform
The core issue is crystallised in the DWP's own finding: in 2024, 420,000 workless disabled people moved into work, while simultaneously, 420,000 disabled workers moved out of work Aman Navani, Research and Policy Analyst at the Work Foundation, highlighted a worrying trend among young people, noting that nearly half (45.8%) of young people not in employment, education or training are classed as disabled. Mr Harrison concluded that punitive policies are ineffective, advocating instead for Government and employers to make "access to secure and flexible work standard practice." Echoing this, Scope's David Southgate asserted that while the system needs reform, the government must "work with disabled people to fix our broken benefits system."
