Concerns Mount Over Potential Disability Benefit Cuts and Workplace Challenges

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As speculation grows over potential government cuts to disability benefits, a new study warns that workplaces may be ill-prepared for an influx of disabled employees. The research, conducted by consultancy firm Barnett Waddingham (BW), highlights significant challenges faced by disabled workers, including high rates of burnout, inadequate accommodations, and widespread concerns about discrimination.

The study follows reports that the government is considering over £5 billion in disability benefit reductions, along with possible reforms to Personal Independence Payments (PIP). If these changes are announced in the Spring Statement on 26 March, more disabled individuals may be pushed into employment—but without sufficient workplace support, they could face worsening conditions.

BW’s research reveals stark disparities in workplace experiences. According to the findings, 79% of disabled employees have suffered from burnout—almost double the rate of their non-disabled colleagues. Additionally, 86% of physically disabled workers report experiencing health problems due to their jobs, compared to just 35% of non-disabled employees.

Beyond health concerns, workplace adjustments remain a critical issue. A quarter of disabled employees feel their employers fail to provide reasonable accommodations for neurodiversity, and more than half (52%) have chosen not to disclose a neurodiverse condition due to fear of bias. These challenges contribute to 76% of disabled workers feeling inadequate in their roles, while only 37% of non-disabled employees report the same experience.

Should government policy changes push more disabled individuals into the workforce, employers may struggle to meet their needs. The research indicates that 30% of disabled workers see paid mental health leave as the most valuable support measure, while 26% prioritise flexible working arrangements and another 26% seek regular mental health check-ins.

Julia Turney, Partner and Head of Platform and Benefits at BW, urged businesses to take proactive steps:

“The government is pushing to get more disabled people into work, but we know that disabled individuals often face worse outcomes once employed, including higher rates of burnout, health issues, and feelings of inadequacy. If more disabled individuals enter the workforce, employers must swiftly adapt working conditions and benefits to support them. Failing to do so could lead to higher turnover and lower productivity.”

As the Spring Statement approaches, advocacy groups and disability rights campaigners are calling for stronger protections and employer accountability. Without urgent action, they warn, policy shifts designed to increase workforce participation could ultimately harm those they aim to help.

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