New analysis shows disabled workers in the UK earn on average £2.24 an hour less than non-disabled workers – a disability pay gap of 15.5% that leaves them more than £4,000 a year worse off, on top of higher living costs and greater insecurity at work.
The figures highlight how far the labour market still is from providing equal pay and equal opportunity for disabled people. While employment has risen in recent years, disabled workers are still more likely to be out of work, in low-paid roles or trapped in insecure contracts, even when they have the skills and experience to do more. For many, the pay gap is not just a statistic – it means having to cut back on essentials, struggling to meet extra disability-related costs and facing constant financial pressure.
Campaigners point out that disabled people are often doing all the things they have been told will help – getting qualifications, looking for work, taking on additional hours where they can – yet still find themselves significantly worse off than non-disabled colleagues. At the same time, employers and policymakers increasingly talk about inclusion and fairness, but the latest data shows that disabled workers remain a long way from pay parity. The modest narrowing of the gap compared with last year is welcome, but the underlying picture is still one of persistent inequality.
Pay gap and yearly impact
Disabled workers in the UK have effectively reached the point in the year where they stop being paid compared to their non-disabled peers because of the disability pay gap. New figures show that disabled employees earn on average £2.24 an hour less than non-disabled colleagues. For someone working a standard 35-hour week, that means more than £4,000 a year less in earnings. This amounts to a 15.5% disability pay gap. While this is a modest improvement on last year’s figure of 17.2%, the gap remains substantial and demands urgent action.
The inequality is even more severe for disabled women. Compared with non-disabled men, the pay gap rises to 27.3%, reflecting the combined impact of disability and gender on pay. Disabled people are also more likely to be out of work. The unemployment rate among disabled people is now the highest it has been since before the pandemic and more than double the rate for non-disabled workers, highlighting the failure of previous efforts to support disabled people into long-term, secure employment.
Higher costs and more insecure work
Lower earnings and higher unemployment are made worse by rising living costs. Research from disability charity Scope suggests that disabled people need, on average, an additional £1,224 a month to achieve the same standard of living as non-disabled people. These costs can include higher energy bills to heat homes, home adaptations, sensory equipment, mobility aids and higher food costs linked to specific dietary needs.
Disabled workers are also more likely to be in insecure work. New figures show that 4.3% of disabled workers are on zero-hours contracts, compared with 3.3% of non-disabled workers. Zero-hours arrangements leave employers in control of hours and income, making it difficult to budget, plan childcare, or attend medical appointments. Workers may also feel unable to challenge unfair treatment due to fears their hours will be reduced.
The government’s Employment Rights Bill includes plans to ban zero-hours contracts, which campaigners say would improve job security for many disabled workers. The Labour government has also committed to introducing mandatory disability pay gap reporting, similar to existing gender pay gap reporting. Employers would publish their disability pay gap and develop action plans to close it, potentially improving outcomes across England, Scotland and Wales.
Campaigners are calling for these commitments to be delivered quickly and for wider reforms to accompany them. This includes improving the Access to Work scheme so adjustments and support are provided promptly, and strengthening requirements for employers to implement reasonable adjustments without delay. The recent Mayfield review, which set out measures to increase disabled people’s participation in work, also provides a framework for progress.
TUC General Secretary Paul Nowak said:
“Everyone who works for a living deserves to earn a decent living. But disabled workers are still waiting for pay parity and fair treatment at work. Urgent action is now needed to improve the quality of work and pay for disabled people. The government’s commitment to delivering mandatory pay gap reporting and banning exploitative zero-hours contracts are among some of the measures that will make a real difference in disabled people’s working lives.
“It’s important we now see those plans realised as soon as possible. We need an economy that allows disabled people to thrive – not one that traps them in poverty.”