The Department for Work and Pensions (DWP) is facing urgent calls to reform the benefits system following the release of new figures showing a mass exodus of disabled people from the workforce.
A Stagnant Employment Landscape
New DWP statistics reveal a stark reality: for every disabled person moving into work, another is leaving. This trend has resulted in zero net growth, with the employment rate for disabled people remaining stagnant at 52.8 per cent since 2019.
Furthermore, the employment gap between disabled and non-disabled workers has widened, increasing from 28.8 per cent to 29.7 per cent. This data underscores the significant disadvantages disabled people continue to face in the UK labour market.
The Human and Fiscal Cost
The human impact of this trend is substantial. In 2024 alone, 420,000 disabled workers moved out of work, a figure that precisely matched the number of workless disabled people who found employment.
Concurrently, the financial pressure on the state is intensifying. According to Office for Budget Responsibility (OBR) estimates, disability benefits expenditure is projected to reach £39.1 billion for 2023-24. The fiscal watchdog anticipates this figure will balloon to £58.1 billion by 2028-29.
Experts Demand a New Approach
Ben Harrison, Director of the Work Foundation, cautioned that employers are missing out on a vast pool of talent. He stated that punitive policies pushing disabled people into 'any job' are proving ineffective.
"Greater flexibility is a key enabler for disabled people to progress in their careers," Mr Harrison said. "Many disabled people still contend with inflexible employers, and we need Government and employers to make access to secure and flexible work standard practice."
The crisis is particularly acute for young people. Aman Navani, a research and policy analyst at the Work Foundation, highlighted that nearly half (45.8 per cent) of young people not in employment, education or training are classed as disabled – a rise of 24.3 percentage points since 2013/14.
David Southgate, Policy Manager at the disability equality charity Scope, warned against simply cutting benefits. "Life costs a lot more when you're disabled, on average by over £1,000 every month. Benefits like PIP are a lifeline," he said. "The system does need reforming, but the government needs to work with disabled people to fix our broken benefits system."
