TUC – disability pay gap reaches staggering level of £4,300 a year

The disability pay gap has hit a staggering level of 17.2%, according to new TUC analysis published today (Thursday). 

The analysis of official statistics shows that over the year to Spring 2024 the earnings gulf between disabled and non-disabled workers widened to £2.35 an hour. For an employee working 35 hours a week, this would be equivalent to £82.25 per week, or £4,300 a year.  

As a result, the average disabled worker is now effectively working for free for nearly two months – from today until the end of the year. 

The analysis also shows that the pay gap is even starker for disabled women. Median pay for non-disabled men is nearly a third (31%) higher than it is for disabled women.  

Bigger than the weekly shop 

The weekly pay gap of £82.25 is now significantly higher than what the average household spends on food a week (£63.50).  

And disabled workers also face higher living costs.   

On average, disabled people have to fork out an additional £1,010 a month to secure the same standard of living as a non-disabled person.  

The costs disabled people face can include higher gas and electricity bills to keep the home warm; home adaptations; hearing or other sensory equipment; manual or electric mobility aids; and higher food bills to support their conditions.  

The TUC says that under the last government a toxic combination of lower earnings, the extra costs faced by disabled households and insecure working conditions increased hardship for disabled workers and their families. 

Disabled workers more likely to be on zero-hours contracts    

Disabled workers are more likely to be employed in low-paid occupations and industries, and are more likely than non-disabled workers to be employed on zero-hours contracts.  

New TUC analysis shows that disabled workers are a third more likely than non-disabled workers to be employed on a zero-hours contract (4.0% compared to 2.9%). And disabled BME women are three times more likely than non-disabled white men to be employed on a ZHC (7.0% compared to 2.3%).  

The TUC says zero-hours contracts hand the employer total control over workers’ hours and earning power, meaning workers never know how much they will earn each week, and their income is subject to the whims of managers.   

The union body argues that this makes it hard for workers to plan their lives, look after their children and get to medical appointments.  

And it makes it harder for workers to challenge unacceptable behaviour by bosses because of concerns about whether they will be penalised by not being allocated hours in the future. 

The government’s Employment Rights Bill is set to significantly limit the use of zero hours contracts – a welcome measure that will improve the lives of many disabled workers. 

Mandatory pay gap reporting  

The Labour government has also committed to introducing mandatory disability pay gap reporting for employers – a measure already in place for reporting on gender pay gaps.  

This measure is recognised as a first step towards closing the gap.  

Reporting, coupled with mandatory action plans to address any identified gaps, could improve the lives of disabled workers in England, Scotland and Wales.  

The TUC says that employers do not have to wait for the government to bring in mandatory disability pay gap reporting and can take steps to identify and address any gaps they have including:  

Where employers identify a disability pay gap or under-representation of disabled people, they should strongly consider taking action including positive action measures such as:  

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.  

“After 14 years of Tory failures and inaction, Labour’s commitment to introduce mandatory disability pay gap reporting is a welcome first step. 

“And this government’s flagship Employment Rights Bill will also help tackle insecure employment – something disabled workers are disproportionally affected by. 

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

ENDS