According to a new analysis by the Trades Union Congress, the UK disability pay gap has increased to 17.2 percent. This equates to an annual average shortfall of 4,300 pounds for disabled workers in comparison to their nondisabled peers.
The increase is compared to 2023, when disabled employees were paid 12.7% less than their nondisabled colleagues.
Based on the Q3 2023 – Q2 2024 Labour Force Survey data, non-disabled workers earn, on average, 2.35 PS more per hour than their disabled counterparts. This translates to a difference of 82.25 PS for 35-hour-week employees.
Pay gaps of up to 31 percent are particularly alarming for women with disabilities, as they face even lower median rates than men without disabilities.
Financial Consequences for Disabled Workers
According to the TUC, the gap in wages between disabled workers and non-disabled employees is more than the amount that the average UK family spends each week on food (£63.50). Along with lower earnings, disabled workers often face higher living expenses. According to research, disabled people spend on average PS1,010 per month more than their non-disabled counterparts in order to maintain the same standard of living.
These costs include increased heating, home adaptations for people with disabilities, mobility aids and sensory equipment. According to TUC, the combination of low earning potential, higher living costs, and insecure work conditions have exacerbated economic hardships for disabled workers.
Sandi Wassmer is the UK’s sole blind female CEO who also has ADHD. She leads The Employers Network for Equality & Inclusion. She said that the disability pay gap affects disabled workers in many ways, from their mental health and financial security to everything else. The gap in pay for disabled people is a further blow to their finances, as they already have higher living expenses due to necessary adjustments. They are not only hurt financially, but also feel less valued when their salaries fall behind those of their non-disabled co-workers. This reinforces discrimination that they face every day.
“The reasons for this gap are obvious but frustrating. Too many employers still see disability as a limit, rather than understanding the individual’s needs and potential. Pay gap reporting mandated by the government could be a step in the right direction. Paying disabled people less than others is not just unfair, it’s also a waste. To get the most out of employees, businesses need to make them feel valued and respected. Paying disabled people less won’t achieve this.
Unemployment and Zero Hours Contracts
The TUC report highlights that disabled workers are more likely than non-disabled people to be on zero-hours contracts. This problem is even more pronounced in certain demographics. For example, disabled women of Black and Minority Ethnic backgrounds (BME) are three times as likely to have zero-hours contracts as non-disabled men.
TUC has argued for years that zero-hours contracting disproportionately impacts vulnerable workers. It limits their financial stability, and gives them less control over their work schedules. These contracts place the scheduling power of employers in their hands, which makes it difficult for workers to plan earnings, take care of dependents and attend medical appointments. The TUC also expressed concern about zero-hours agreements, which could discourage employees from raising concerns over unfavourable conditions because they fear a reduction in hours.
TUC has welcomed the proposed Employment Rights Bill which seeks to restrict the use of zero hours contracts as a way to address employment insecurity. This is especially true for disabled workers.
Mandatory Disability Pay Gap reporting
In order to address wage disparities the Labour government committed to introduce mandatory reporting for employers on disability pay gap, similar in nature to the existing reporting requirements for gender-pay gaps. This commitment is seen by the TUC as an important step in closing the wage gap and improving the work conditions for disabled employees.
TUC also urges employers to act immediately to analyze their workforce data rather than wait for legislation that will require it. They should take proactive measures such as holding career open days and providing targeted training and internships for disabled candidates.
Paul Nowak, TUC General Secretary, said that “everyone who earns a living should be able to live a decent life.” He said that under the previous government, the pay gap between disabled workers and other workers grew. “Urgent action is needed now to improve the opportunities for disabled employees,” Nowak said.
“We need to create an economy that enables disabled people thrive, not one that traps these people in poverty.”
