Employment Policy & Disability Rights October 2025 12 min read

Disabled People, Work, and the Latest ONS Results: What Citizens Need to Know

Government "Back to Work" policies versus employment market reality

✍️ By UKPoliticsDecoded Editorial Team
Analysis of disabled employment data and government Back to Work policies

The UK Government has made getting more disabled people into work a central part of its "Back to Work" agenda. Recent proposals include embedding employment advisers in GP surgeries and reforming Personal Independence Payment (PIP). But how do these policies stack up against the reality shown in the latest Office for National Statistics (ONS) data?

The August 2025 ONS employment figures reveal a stark disconnect between government rhetoric about disabled people "choosing" not to work and the structural barriers that continue to exclude millions from meaningful employment. This analysis examines what the data actually shows and why current policies may be pushing disabled people into unsuitable work rather than addressing the fundamental problems in Britain's labour market.

📊 Key ONS Employment Data (August 2025)

  • Disabled employment rate: 54% vs 82% for non-disabled people
  • Employment gap: 28 percentage points with minimal change over past year
  • Part-time work: Nearly 1 in 3 disabled workers vs 1 in 5 non-disabled workers
  • Job vacancies: Fallen for 39th consecutive quarter to 717,000
  • Economic inactivity: Disabled people significantly more likely to be classed as inactive

What the ONS Data Actually Shows

The latest ONS employment statistics paint a complex picture that challenges government narratives about disabled people and work. Rather than revealing "worklessness" or lack of motivation, the data exposes systemic barriers and market failures that no amount of individual pressure can overcome.

The Persistent Employment Gap

The headline figure a 28 percentage point gap between disabled and non-disabled employment rates - represents one of the most stubborn inequalities in the UK labour market:

  • Disabled People: 54% employment rate despite decades of "Back to Work" schemes
  • Non-Disabled People: 82% employment rate, demonstrating jobs exist for those without barriers
  • Static Gap: Minimal improvement over the past year despite government focus
  • Historical Context: Gap has remained remarkably stable across different governments and policies
  • International Comparison: UK performs poorly compared to other European countries with similar economies

Quality of Employment: The Part-Time Picture

Perhaps more revealing than overall employment rates is the quality of work available to disabled people:

  • Part-Time Prevalence: Nearly 1 in 3 disabled workers are in part-time roles
  • Limited Hours: Often forced into fewer hours due to health conditions or inflexible employers
  • Lower Pay: Part-time roles typically offer lower hourly rates and fewer benefits
  • Job Security: Higher prevalence of temporary and casual contracts
  • Career Progression: Limited opportunities for advancement in part-time roles
  • Benefits Impact: Part-time work often doesn't provide sufficient income to replace benefits

Economic Inactivity: Understanding the Reality

The term "economic inactivity" is often used to suggest disabled people are choosing not to participate in the labour market, but the reality is more complex:

  • Health Barriers: Long-term conditions making regular employment impossible
  • Caring Responsibilities: Higher likelihood of caring for disabled family members
  • Discrimination: Previous negative employment experiences leading to withdrawal
  • Benefits Trap: Risk of losing essential support if work doesn't provide adequate income
  • Lack of Support: Insufficient workplace adjustments or flexible arrangements

The Shrinking Job Market

A crucial context often ignored in disability employment discussions is the overall state of the job market:

  • Vacancy Decline: 39 consecutive quarters of falling job vacancies
  • Current Level: Just 717,000 vacancies across the entire UK economy
  • Increased Competition: More people competing for fewer opportunities
  • Employer Choice: Greater ability to discriminate when many candidates available
  • Skills Mismatch: Available jobs often don't match disabled people's qualifications

Government Policy Responses: The "Back to Work" Agenda

The government's response to these employment figures has focused on individual behavior modification rather than addressing structural barriers. This approach reveals a fundamental misunderstanding of why disabled people struggle to find suitable work.

PIP Reforms: Linking Support to Work Participation

The proposed changes to Personal Independence Payment represent a significant shift in disability support philosophy:

  • Conditionality Introduction: Linking disability support to work-seeking behavior
  • Assessment Changes: More frequent reviews and stricter criteria
  • Work Capability Focus: Emphasis on what people can do rather than support needs
  • Financial Pressure: Threat of benefit reduction to encourage employment
  • Individual Responsibility: Placing onus on disabled people to find work
PIP was designed to support the additional costs of living with a disability, transport, equipment, personal care and provide a quality of life standard. Linking this support to work participation fundamentally misunderstands its purpose and could leave disabled people unable to afford the basics needed to function in society, let alone seek employment.

GP Surgery Employment Advisers

The placement of employment advisers in GP surgeries represents an expansion of work focused interventions into healthcare settings:

  • Early Intervention: Catching people before they become "long-term unemployed"
  • Medical Integration: Combining health treatment with employment pressure
  • Professional Boundaries: Blurring lines between healthcare and welfare enforcement
  • Patient Trust: Potential impact on doctor patient relationships
  • Work-First Approach: Prioritizing employment over health recovery

Economic Inactivity Targets

The government has set ambitious targets for reducing economic inactivity, but the focus disproportionately targets disabled people:

  • Disability Focus: Despite disabled people being minority of economically inactive
  • Target Pressure: Civil servants incentivized to move people off benefits regardless of suitability
  • Quick Wins: Emphasis on easy cases rather than addressing complex barriers
  • Statistical Success: Measuring success by benefit reductions rather than sustainable employment
  • Ignored Groups: 19% of non-disabled economically inactive people receive less attention

The Reality Check: Policy vs. Practice

When government policies meet the reality of the ONS data and disabled people's lived experiences, significant gaps emerge that reveal why current approaches are failing.

Fewer Opportunities, Greater Competition

The shrinking job market fundamentally undermines the government's approach:

  • Mathematical Reality: 717,000 vacancies cannot accommodate millions of economically inactive people
  • Employer Power: When jobs are scarce, employers can afford to discriminate
  • Skills Premium: Available jobs increasingly require skills disabled people may lack due to education/training barriers
  • Geographic Mismatch: Jobs concentrated in areas inaccessible to many disabled people
  • Competition Intensity: Disabled people competing against non-disabled candidates in tight market

Quality of Available Work

The ONS data reveals that when disabled people do find work, it's often poor quality:

  • Part-Time Necessity: Many forced into part-time work due to health conditions
  • Lower Pay: Disabled workers earning less on average than non-disabled counterparts
  • Job Insecurity: Higher rates of temporary and casual employment
  • Limited Progression: Fewer opportunities for career advancement
  • Workplace Discrimination: Ongoing barriers to equal treatment at work

Regional Disparities

The employment gap for disabled people varies dramatically across the UK:

  • London Advantage: Better employment rates due to diverse economy and transport
  • Northern Struggles: North East particularly challenging for disabled employment
  • West Midlands: Industrial decline leaving fewer suitable opportunities
  • Rural Challenges: Limited transport and job diversity in rural areas
  • Policy Blind Spot: National policies ignore regional variations

The Benefits System: Barriers to Work

Ironically, the current benefits system often creates barriers to the very employment the government claims to want to encourage.

The Benefits Trap

Disabled people face unique challenges when considering employment:

  • All-or-Nothing: Risk losing all support if work doesn't work out
  • Assessment Delays: Months waiting for benefit decisions if employment fails
  • Support Costs: Losing disability-related support that enables participation in any work
  • Healthcare Access: Risk of losing priority healthcare access
  • Housing Benefit: Complex interactions with housing support

Part-Time Work Penalties

The benefits system particularly penalizes the gradual return to work that many disabled people need:

  • Hours Thresholds: Arbitrary cut-offs that don't reflect individual capacity
  • Taper Rates: Benefit reduction often exceeds additional earnings
  • Administrative Burden: Complex reporting requirements for variable hours
  • Flexibility Punishment: System designed for full-time, regular employment
  • Risk Aversion: Rational choice to avoid unstable part-time work

Work Capability Assessments: The Human Cost

The system for determining who is "fit for work" has become a source of stress and inaccuracy:

  • Assessor Training: Limited understanding of chronic pain, mental health, and fluctuating conditions
  • Misrepresentation: Common complaints about assessors misunderstanding or misreporting conditions
  • Appeals Success: High rate of successful appeals suggests initial assessments often wrong
  • Stress Impact: Assessment process itself worsening mental health outcomes
  • Box-Ticking Exercise: Computer-based assessments missing nuanced realities
Many disabled people report that the stress of work capability assessments actually makes their health conditions worse, creating a perverse situation where the system designed to help people into work actually makes them less able to work.

Mental Health: The Hidden Crisis

The ONS data reveals a growing mental health crisis that current policies are ill-equipped to address.

Rising Mental Health Inactivity

Mental health conditions are now the leading cause of economic inactivity among disabled people:

  • Prevalence Increase: More people citing mental health as barrier to work
  • Young People: Particularly high rates among 18-24 age group
  • Multiple Conditions: Often combined with physical health problems
  • Workplace Triggers: Work environments that exacerbate mental health conditions
  • Treatment Gaps: Long waits for mental health support preventing return to work

Policy Pressures Worsening Mental Health

Government policies may be counterproductive for mental health employment:

  • Assessment Stress: Regular capability assessments increasing anxiety and depression
  • Financial Insecurity: Benefit uncertainty creating additional mental health pressures
  • Work Pressure: Forced job searching when not mentally ready
  • Unsuitable Placements: Jobs that trigger or worsen mental health conditions
  • Support Withdrawal: Losing mental health support when deemed "fit for work"

What Actually Needs to Change

For disabled employment rates to improve meaningfully, fundamental changes are needed to the labour market, not just disability policy.

Labour Market Structural Reform

Real progress requires addressing the demand side of the employment equation:

  • Flexible Roles: Jobs designed around health conditions rather than forcing disabled people to fit rigid structures
  • Anti-Discrimination Enforcement: Meaningful penalties for employers who discriminate
  • Reasonable Adjustments: Legal requirements with teeth, not optional suggestions
  • Part-Time Opportunities: Career-track part-time roles with progression opportunities
  • Remote Work: Expansion of work-from-home opportunities

Regional Economic Development

The employment gap cannot be closed without addressing regional inequalities:

  • Job Creation: Economic development in areas with high disability populations
  • Transport Investment: Accessible public transport enabling job access
  • Skills Matching: Training opportunities aligned with available employment
  • Employer Support: Help for local employers to create inclusive workplaces
  • Community Services: Support infrastructure enabling workforce participation

Benefits System Reform

The benefits system needs fundamental reform to support rather than hinder employment:

  • Gradual Transition: Benefits that support part-time work without cliff-edge reductions
  • Disability Costs: Recognition that disability-related costs continue in employment
  • Flexibility Support: Benefits designed for fluctuating health conditions
  • Return Rights: Guaranteed benefit restoration if employment doesn't work out
  • Assessment Quality: Medically trained assessors who understand complex conditions

Wider Economic Inactivity Focus

Policy should address all causes of economic inactivity, not just disability:

  • Non-Disabled Inactivity: 19% of non-disabled people are economically inactive
  • Caring Responsibilities: Support for unpaid carers to access employment
  • Skills Gaps: Training for all groups facing employment barriers
  • Age Discrimination: Support for older workers facing employment discrimination
  • Geographic Mobility: Help for people in areas with no suitable jobs

International Comparisons: What Works Elsewhere

Other countries achieve better disability employment outcomes through different approaches.

Scandinavian Models

  • Norway: Flexible work arrangements and strong disability support leading to higher employment rates
  • Denmark: "Flexjobs" program allowing part-time work with wage subsidies
  • Sweden: Extensive workplace accommodation requirements and employer support

Netherlands Approach

  • Employer Quotas: Requirements for larger employers to hire disabled workers
  • Wage Subsidies: Government support reducing cost of employing disabled people
  • Job Coaching: Ongoing workplace support rather than one-off interventions

German Model

  • Legal Framework: Strong legal protections against disability discrimination
  • Integration Services: Specialized employment services for disabled people
  • Employer Support: Technical and financial assistance for workplace adjustments

Conclusion: Addressing Reality, Not Rhetoric

The latest ONS employment data exposes a fundamental mismatch between government rhetoric about disabled people and work, and the reality of structural barriers in the UK labour market. While ministers talk about "worklessness" and "benefit dependency," the data shows disabled people facing shrinking job opportunities, poor quality work, and a benefits system that punishes gradual return to employment.

The 28 percentage point employment gap between disabled and non-disabled people has remained stubbornly persistent despite decades of "Back to Work" initiatives. This isn't because disabled people lack motivation or skills, but because the labour market continues to exclude them through discrimination, inflexibility, and lack of reasonable adjustments.

Current government policies from PIP reforms to GP surgery advisers focus on changing disabled people's behavior rather than addressing these structural barriers. This approach is not only ineffective but potentially harmful, adding stress and financial insecurity that can worsen health conditions and make employment less likely.

The reality revealed by the ONS data is that disabled people are being asked to enter a labour market where opportunities are narrowing (717,000 vacancies for millions of economically inactive people), discrimination remains common, and the benefits system actively discourages the flexible, part-time work that many disabled people need.

Real progress requires acknowledging these structural barriers and addressing them through labour market reform, stronger anti-discrimination enforcement, and a benefits system designed to support rather than hinder gradual return to work. It means creating jobs that work for disabled people, not forcing disabled people to fit unsuitable jobs.

The evidence from other countries shows this is possible. Higher disability employment rates can be achieved through approaches that recognize disabled people's rights to both adequate support and meaningful work opportunities. But this requires moving beyond rhetoric about "personal responsibility" to address the systemic inequalities that the ONS data so clearly reveals.

Until policymakers focus on fixing the labour market rather than fixing disabled people, the employment gap will remain, and millions of disabled people will continue to face the impossible choice between inadequate benefits and unsuitable work. The ONS data doesn't show a lack of work ethic among disabled people - it shows a society that has yet to create an inclusive economy that values their contributions.