Employment & Pensions Blog: The Disability Employment Divide - What does Parliament’s New Inquiry Mean for UK Employers

Despite a growing emphasis on diversity and inclusion across UK workplaces, disabled people continue to face significant disadvantages in employment. The latest data shows a 28% difference in employment rates between disabled and non-disabled people, a figure that has seen little improvement in recent years.

In response, the House of Commons Work and Pensions Committee has launched an inquiry into the disability employment gap, seeking to understand why progress has stalled and to identify what further action is needed. For employers, this marks an important moment to reassess internal practices and contribute to broader systemic change.

The Parliamentary Inquiry: Scope and Key Questions

The inquiry, open for submissions until 29 September 2025, aims to explore the barriers that continue to prevent disabled people from entering or remaining in work. It will examine the effectiveness of existing Government initiatives and consider where further intervention is needed.

The key issues under consideration include:

• How well do current support mechanisms, including Disability Employment Advisers, Access to Work, Disability Confident, Connect to Work, and the Motability Scheme, function in practice?
• What lessons can be drawn from the Work and Health Programme, or from international examples of successful disability employment policies?
• How can safeguarding be embedded at every stage of employment support, using a systems-based approach that accounts for the full lifecycle of policy development and delivery?

These wide-ranging questions reflect a clear desire from policymakers to understand the real world experiences of disabled people and to ensure Government funded initiatives are achieving their intended outcomes.

Support in Practice: The Role of Employers

While the inquiry is aimed at shaping Government policy, employers have a critical role to play in closing the disability employment gap. Recent guidance from the Better Hiring Institute (BHI) has underlined the importance of taking practical, proactive steps to remove unnecessary barriers in the workplace.

The BHI identifies several common challenges for disabled individuals, including:

• A lack of disability awareness and confidence among managers.
• The additional financial burden often faced during recruitment processes.
• Persistent misconceptions about the cost or feasibility of reasonable adjustments.
• A lack of data and transparency on disability employment and pay gaps.

Practical Steps Employers Can Take Now

Employers need not wait for the outcome of the inquiry to begin implementing change. There are several immediate steps organisations can take:

1. Audit and Adjust Recruitment and HR Practices

Review hiring processes, onboarding procedures, and workplace policies to identify and remove hidden barriers.

2. Use Inclusive Language in Job Adverts

Clearly welcome applications from disabled candidates and highlight any support available during the recruitment process.

3. Provide Reasonable Adjustments

Engage in open discussions with employees and candidates about their needs and tailor adjustments accordingly.

4. Invest in Training

Ensure all staff, especially line managers, receive disability awareness training to build a more informed and supportive culture.

5. Consider Voluntary Reporting

Although not yet mandatory, tracking and reporting on disability pay and employment data can support transparency and drive internal progress.

6. Foster a Culture of Openness

Encourage open dialogue around disability and health conditions and make it clear that support is available without stigma or negative consequence.

Looking Ahead

The inquiry reflects renewed political interest in addressing the disability employment gap, but real progress will also depend on the commitment of employers. By reviewing policies and workplace culture now, employers can better support their disabled workforce and prepare for any future developments in regulation or best practice.

If you require advice on supporting disabled employees, reviewing your organisation’s approach to reasonable adjustments, or understanding your legal obligations under the Equality Act 2010, please contact a member of our Employment Team.