New analysis by the Trades Union Congress (TUC) shows that the disability pay gap in the UK has widened to 17.2 percent, equating to an average annual shortfall of £4,300 for disabled workers compared to their non-disabled counterparts.

This is an increase compared to 2023 when, according to the Office for National Statistics (ONS), disabled employees earned 12.7 percent less than their non-disabled counterparts.

The data, based on Q3 2023-Q2 2024 of the Labour Force Survey, indicates that non-disabled employees currently earn an average of £2.35 more per hour than disabled employees, translating to a weekly difference of £82.25 for those working 35-hour weeks.

The gap is particularly concerning for disabled women, who are facing even lower median pay rates when compared to non-disabled men, with pay differences reaching nearly 31 percent.

Financial Implications for Disabled Workers

The £82.25 weekly wage gap between disabled and non-disabled workers is now more than what the average UK household spends on food in a week (£63.50), according to the TUC. In addition to reduced earnings, disabled workers frequently incur higher living costs. Research indicates that disabled individuals spend an average of £1,010 more each month than their non-disabled peers to maintain an equivalent standard of living.

These additional costs often include higher heating expenses, specialised home adaptations, mobility aids, and sensory equipment. According to the TUC, a combination of limited earning potential, increased living expenses, and often insecure working conditions has exacerbated economic hardship for disabled workers and their families.

Sandi Wassmer, the UK’s only blind female CEO with ADHD, leads The Employers Network for Equality & Inclusion (enei). She commented the findings, saying, “The disability pay gap has a deep impact on disabled workers, affecting everything from their mental health to financial security. Disabled people already face higher living costs because of necessary adjustments, so this gap means they end up with even less disposable income to live on. When they see their pay fall short compared to non-disabled colleagues, it’s a blow not only to their wallets but to their sense of self-worth – it reinforces the discrimination they face daily.

“The reasons behind this gap are clear but frustrating: too many employers still view disability as a limitation, instead of understanding individual needs and potential. Real change would mean holding companies accountable, and government-mandated pay gap reporting could help. At the end of the day, paying disabled people less isn’t just unfair – it’s a waste of their talent and drive. For businesses to get the best out of their people, every worker should feel valued and respected, and paying disabled people less will never achieve this.”

Employment Insecurity and Zero-Hours Contracts

The TUC report also highlights a higher prevalence of zero-hours contracts among disabled workers, who are more likely to be employed on these terms compared to non-disabled individuals. The issue is further pronounced among specific demographics, with disabled women from Black and Minority Ethnic (BME) backgrounds three times more likely to be on zero-hours contracts than non-disabled white men.

The TUC has long argued that zero-hours contracts disproportionately affect vulnerable workers, limiting their financial stability and control over work schedules. Such contracts often place all scheduling power in the hands of the employer, making it challenging for workers to predict earnings, care for dependents, and attend medical appointments. The TUC has also raised concerns about zero-hours contracts discouraging employees from speaking out against unfavourable conditions for fear of reduced hours.

The proposed Employment Rights Bill, which seeks to limit the use of zero-hours contracts, has been welcomed by the TUC as a step toward addressing employment insecurity, particularly for disabled workers.

Mandatory Disability Pay Gap Reporting

To address wage disparities, the Labour government has committed to introducing mandatory reporting on disability pay gaps for employers, in line with the current reporting requirements for gender pay gaps. The TUC views this commitment as a critical step toward closing the pay gap, with the goal of improving work conditions and pay equity for disabled employees.

The TUC is also urging employers to take immediate steps to analyse their workforce data, rather than waiting for legislation to require it, and to take proactive steps such as hosting career open days for disabled candidates and offering targeted training or internships.

TUC General Secretary Paul Nowak said, “Everyone who works for a living deserves to earn a decent living. But under the last government the pay gap for disabled workers just kept getting worse. Urgent action is now needed to improve opportunities for disabled workers,” he said.

“We need an economy that allows disabled people to thrive – not one that traps them in poverty.”