The UK’s disability pay gap has remained unchanged since 2014.
The Office for National Statistics’ latest figures to 2023 show a 12.7% wage gap between disabled employees and non-disabled workers, with hourly median pay rates of PS13.69 versus PS15.69.
Men are more likely to be in the gap than women (15.5% versus 9.6%) and full-time employees (11.2% versus 4.1%), as well as part-time employees (4.1%).
The data shows that employees with disabilities that were severely limited experienced the largest disability pay gap, which was 17.1%. This was followed by those who had a disability but were only slightly limited, who saw a disability pay difference of 11.2%.
The gap between disabled workers with autism and those without was 27.9%. Workers with epilepsy had a gap of 26.9%, while those with severe learning difficulties or autism faced a gap of 20.3%.
Statistics showed that factors such as occupation, age and qualifications, along with geography, have the greatest impact on the disability wage gap.
Sam Greenhalgh is an employment partner with the law firm Birketts. He warns that employers need to take immediate action to prepare for the potential government plans to impose reporting of disability pay gaps on employers.
He said that employers should be alerted by the latest figures on disability pay gaps. The gap is still there, even though it has been largely unchanged since 2014. It has an even greater importance for employers after plans announced last week by the government to make disability and ethnicity reporting mandatory.
Many businesses and employers make mistakes when reporting gender pay gaps, but they have little consequences. It is now time to prepare for the future requirement of adding disability and pay gap reports to the mix.
Greenhalgh said that employers should now take a closer look at their pay structure and reporting requirements to ensure they get them right, before any further mandatory reporting is introduced.
Tom Heys is the lead for pay reporting at Lewis Silkin. He believes that the report shows the UK still has a lot of work to do when it comes true inclusion of disabled employees.
He said: “Employment rates and economic activity for disabled people are stubbornly low. This reveals the systemic barriers that they face in their workforce.
“Disability isn’t one-size-fits-all. The spectrum of disability is wide, ranging from chronic diseases like cancer and diabetes to neurodiverse traits like autism and physical impairments such as paralysis. Some people who are deemed ‘disabled,’ do not identify as such, and others remain silent for fear of career consequences. “It’s similar to ethnic diversity. Different groups face different challenges and a blanket strategy won’t work.”
Hayes says that although Labour’s commitment for large employers to report the disability pay gap is a positive step, it still needs a timeline.
He continued: “Employers who are trying to keep up with these changes face hurdles. Datasets can be incomplete and the definition of ‘disability,’ for example, can change the whole picture. It is difficult for employees to compare companies effectively because of this lack of clarity.
For real progress to be made, employers need to be authentic. They must go beyond checking boxes. They must build a culture that is open and transparent, one which admits to current shortcomings and empowers leaders to tell their stories. Disability and wellbeing should be viewed as integral parts of business.
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