Disabled workers will effectively work for free from today until the end of the year, according to fresh analysis of the disability pay gap.
Earnings between disabled and non-disabled workers remains a significant £2.24 an hour, which means disabled employees working a 35-hour week have to get by with more than £4,000 less a year on average compared to those without disabilities, according to the Trades Union Congress.
The disability pay gap amounts to a 15.5 per cent difference, a modest improvement from last year when it was 17.2 per cent, but the TUC and disability advocates have warned substantial action is needed to tackle the disparity.
Disabled people already face higher living costs on average, with disability equality charity Scope estimating they have to fork out an additional £1,224 a month to secure the same standard of living as a non-disabled person. Additional costs disabled people face include higher gas and electricity bills to keep their homes warm, home adaptations, hearing or other sensory equipment, and higher food bills to meet dietary requirements.
James Taylor, director of Strategy at Scope, said: “The disability pay gap proves once again the odds are stacked against disabled people at work.
“Life costs more if you are disabled. Yet fair pay and career progression opportunities are out of reach for many,” he added. “Employers must step up to make workplaces accessible and inclusive, so talented disabled people don’t slip through the cracks.
“We also urge the government to bring forward its legislation on disability pay gap reporting, to drive meaningful change and take steps towards closing the pay gap.”
They are also more likely to be employed on zero-hours contracts than non-disabled workers, according to the analysis, with the union body arguing that these contracts give employers more control over workers’ hours and earning power.
Further analysis from the union shows that the unemployment rate among disabled people is at the highest it’s been since before the pandemic – more than double that for non-disabled people.
Dan White, policy officer at Disability Rights UK, said the disability pay gap was a stark reminder of the inequality disabled people experience in the job market.
“At a time when the government is pushing disabled people into work, the continuing disability pay gap reminds us of the inequality we experience within the labour market,” said Mr White. “Although we welcome a drop in the percentage, the pay gap remains. Disabled workers go home with less money in our pockets at a time when many in our community are battling poverty. The failure to significantly close the gap is cruel and shameful to employers and the government.
“The government proposes to introduce mandatory disability pay gap reporting and has already consulted on this intention. We need this legislation to be brought forward to make employers take responsibility for fixing the disability pay gap.
“The pay gap is a stark reminder before the upcoming budget announcement. As it stands, Disabled people need an extra £1095 per month to achieve the same standard of living as non-disabled people.
“This chasm is rarely recognised in the funding of public services, with our community left to bear the brunt of years of decline, receiving too little for our hard work to even paper over the cracks. The pay gap proves that this year’s budget must be a reset, a move away from years of austerity toward funding the services we all rely on. ”
TUC general secretary Paul Nowak said that urgent action was needed to improve the quality of work and pay for disabled people, urging the government to press on with plans to introduce mandatory pay gap reporting for disabilities.
“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.,” he said. “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.”
The government’s Employment Rights Bill, set to ban zero hours contracts, is currently in the final stages.
A government spokesperson said: “We are committed to boosting opportunity and championing the rights of disabled people and breaking down barriers to opportunity.”That is why as part of the upcoming Equality (Race and Disability) Bill, we are introducing mandatory disability pay gap reporting for large employers.”
