The government has commissioned new research into why the number of people claiming disability and out-of-work health benefits has continued to rise, amid growing pressure to strengthen employment support and workplace inclusion for disabled people. The review, announced in October, will examine the barriers that prevent disabled individuals and those with long-term health conditions from entering or staying in work.
According to the latest data from the Office for National Statistics, around 2.8 million working-age adults now receive health-related or disability benefits. The disability employment rate currently stands at just over 53 per cent, compared with 81 per cent for non-disabled people — a gap that has remained largely unchanged for the past five years. Ministers say the new study will help them understand the reasons behind this trend and shape future policy aimed at narrowing the gap.
The Department for Work and Pensions said the research would focus on three key areas: the impact of long-term health conditions on employment outcomes, the adequacy of workplace support for disabled employees, and the effectiveness of current recruitment and retention initiatives. Officials have acknowledged that while economic inactivity is increasing across several groups, the trend is “particularly pronounced among people with disabilities or chronic illness”.
Campaigners and disability advocates have cautiously welcomed the review but warned that it must lead to tangible action rather than further consultation. Disability organisations argue that inaccessible workplaces, inflexible recruitment processes and inconsistent implementation of reasonable adjustments continue to exclude qualified candidates. They cite examples such as online testing systems that disadvantage neurodivergent applicants or interview formats that fail to accommodate different communication needs.
Recruiters and HR professionals working in diversity and inclusion say the research could provide useful insights for employers. Many large organisations now run targeted disability recruitment schemes or internal inclusion networks, but progress remains uneven across sectors. A recent survey by the Chartered Institute of Personnel and Development found that only 42 per cent of employers have a formal policy for recruiting or supporting disabled staff, and fewer than half provide specific training for hiring managers.
Specialist recruiters report a steady rise in requests for advice on accessible hiring. Clients are increasingly asking for support on job advertising, interview design and workplace adjustments. Some agencies are appointing disability employment specialists within their teams to ensure that candidates are matched to roles where adjustments can be built in from the start.
For employers, retaining disabled staff once hired is an equally pressing issue. Many employees who develop disabilities or long-term conditions leave work within two years, often because of a lack of flexibility or workplace support. Advocates are calling for greater investment in occupational health services and job redesign to help people remain in employment rather than fall out of the labour market altogether.
The government has previously pledged to get one million more disabled people into work by 2027, but progress towards that target has slowed. Programmes such as Access to Work and Disability Confident have helped raise awareness but face criticism for inconsistent delivery and lengthy delays. The new research is expected to explore how these schemes can be improved and better aligned with employer needs.
Rising economic inactivity due to long-term sickness has also become a concern for policymakers and businesses. The Bank of England and Treasury officials have warned that workforce shortages linked to ill health are now affecting productivity and growth. Business groups argue that tackling this issue is essential not only for social inclusion but also for economic stability.
For recruiters and employers, the review signals a renewed focus on disability inclusion as a workforce priority. Agencies that build expertise in accessible recruitment and workplace adjustments are likely to see increasing demand for their services. More broadly, the discussion marks a shift from treating disability employment as a welfare issue to recognising it as central to the country’s employment strategy.
As one inclusion consultant put it recently, “We already know where the barriers are — the challenge now is to remove them.” Whether this review delivers real change will depend on how quickly the government turns its findings into action.