Disabled employees in the UK earn on average 17.2% less than non-disabled peers. This guide presents the latest data, explains the drivers, and sets out concrete actions employers can take — from pay audits to progression pathway reviews.
The Disability Pay Gap: UK Data and What Employers Can Do
The Scale of the Problem
The disability pay gap in the UK has persisted for decades. The most recent data shows:
17.2% median hourly pay gap between disabled and non-disabled employees (ONS, 2023)
Gap has narrowed by only 1.8 percentage points since 2014
For disabled women, the combined gender-disability pay gap reaches 36%
Disabled people are twice as likely to be in the lowest earnings quintile
Why the Gap Exists
The disability pay gap is not explained by a single factor. Research from the Resolution Foundation and the Joseph Rowntree Foundation identifies five main drivers:
1. Occupational Segregation
Disabled people are over-represented in lower-paid occupations (retail, hospitality, social care) and under-represented in higher-paid ones (management, professional services, technology). This is partly explained by educational attainment gaps, transport barriers, and inaccessible workplaces in senior roles.
2. Part-Time Penalty
Disabled people are more likely to work part-time (often due to health and energy management needs). Part-time workers earn less per hour on average than full-time workers in the same occupation, even when controlled for sector.
3. Progression Barriers
Disabled employees are promoted at lower rates. BDF research (2023) found:
42% of disabled employees say their disability has limited their career progression
28% report being passed over for promotion despite strong performance
Only 14% of UK C-suite roles are held by people who identify as disabled
4. Under-Use of Flexible Working
Many disabled employees work flexibly but on informal arrangements that are not recognised in pay band criteria, limiting promotion eligibility.
5. Unconscious Bias
Performance assessments and promotion decisions made by managers unaware of their biases systematically disadvantage disabled employees — particularly those with non-visible conditions.
Current Reporting Requirements
As of 2024, there is no legal requirement for UK employers to report their disability pay gap (unlike gender pay gap reporting, which is mandatory for employers with 250+ employees).
The government consulted on mandatory disability pay gap reporting in 2021. A voluntary reporting framework was introduced in 2023, and the Inclusion at Work panel has recommended making it mandatory.
Voluntary reporters include: Channel 4, Deloitte, HSBC, Lloyds Banking Group, Tesco, and the Civil Service.
How to Conduct a Disability Pay Gap Audit
Step 1: Collect Disability Data
Without employee data, a pay gap analysis is impossible. Set a target for voluntary disability self-identification. A response rate of 70%+ enables meaningful analysis.
Step 2: Analyse Pay by Quartile
Divide your workforce into four pay quartiles. What percentage of each quartile identifies as disabled? A bottom-heavy distribution (more disabled employees in lower quartiles) is a key pay gap indicator.
Step 3: Analyse Progression Data
Compare promotion rates for disabled and non-disabled employees at each grade. If disabled employees are promoted at lower rates, this is a root cause that needs addressing.
Step 4: Analyse Flexible Working and Pay
What proportion of disabled employees are on informal flexible arrangements? Do informal flexible arrangements affect bonus eligibility, progression criteria, or pay band access?
Step 5: Publish and Act
Even without a legal requirement, voluntary publication of a disability pay gap figure signals commitment. Pair with a narrative action plan.
Actions That Make a Difference
Action
Evidence of Impact
Blind recruitment (name and disability status removed at shortlisting)
+23% shortlisting rate for disabled candidates (BITC, 2022)
Structured promotion criteria (skills-based, not manager discretion)
Removes subjectivity that drives bias
Disability inclusive flexible working policy (formal, not informal)
Enables flexible workers to access senior roles
Pay transparency (publish pay ranges in job adverts)
Reduces negotiation gap that disadvantages disabled candidates
Disability champion at board level
Correlates with +18 points on BDF Disability Standard pay equity score
Reporting Framework (Voluntary)
If you choose to report your disability pay gap voluntarily, report:
% of workforce who identified as disabled (your data coverage)
Median hourly pay gap (disabled vs non-disabled)
Mean hourly pay gap
Distribution by quartile (% disabled in each pay quartile)
Bonus gap (median and mean)
Narrative explaining drivers and action plan
Sources: ONS Disability and the Labour Market 2023, Business Disability Forum Disability Pay Gap Report 2023, Resolution Foundation Low Pay Britain 2023, BITC Race and Disability at Work 2022