Tackling disability discrimination in the workplace

Posted: 25/02/2025

The Labour Party’s ‘Plan to Make Work Pay’, published in May 2024, confirmed its commitment to tackling inequalities for disabled people in the workplace, promising the introduction of mandatory disability (and ethnicity) pay gap reporting. The party manifesto, published in advance of the general election, further promised to improve access to reasonable adjustments and to address the backlog in the Access to Work scheme.

Following the election, the new government announced in the King’s Speech that, in addition to the much-publicised Employment Rights Bill, it will also publish a Race and Equality Bill, focused on tackling the pay disparity for disabled people and ethnic minorities, by enshrining in law the full right to equal pay, and introducing mandatory pay gap reporting for large employers (those with 250 or more employees). While the draft bill has not yet been published, it is expected within the current parliamentary session, and the government has confirmed that consultation will begin this year.

Disability pay gap

The Trades Union Congress (TUC) published a disability pay gap analysis in November 2024. This analysis revealed that the disability pay gap is now 17.2% and that, for the year ending spring 2024, the earnings gap between disabled and non-disabled workers increased to £2.35 an hour (the equivalent of £4,300 a year for an employee working a 35-hour week). There is clearly much for employers to do to close the gap.

Next steps

While the bill is unlikely to be enacted before 2026, and its proposals are expected to be subject to extensive consultation, are there any steps that employers could be taking now to ensure they are prepared for the new duty?

Larger employers would be well advised to start collecting and analysing their data, to review current pay structures and address any gaps before the reporting requirements kick in. Where a gap is identified, employers may wish to take positive action to address any imbalance, bearing in mind the limitations of the positive action provisions in the Equality Act.

Beyond the bill

Employers should also be aware that in September 2024, the Equality and Human Rights Commission (EHRC) issued guidance on supporting disabled workers with hybrid working. The guidance, which is aimed at managers and leaders who are supporting disabled workers with participating fully in hybrid working, provides practical tips, conversation prompts, questions and case study examples. It covers both recruitment and employment.

In addition, on 26 February 2024, under the previous government, the Work and Pensions Committee announced an inquiry into how disabled people can be better supported to start and stay in work, and the effectiveness of the government's efforts to narrow the disability employment gap. The call for evidence on the Work and Pensions Committee's inquiry closed on 28 March 2024. It remains to be seen how the Labour government will progress this.

For further information on how these issues might affect your organisation, please contact Paul Mander.

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