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We now come to the Select Committee statement on behalf of the Work and Pensions Committee. Debbie Abrahams will speak for up to 10 minutes, during which no interventions may be taken. At the conclusion of her statement, I will call Members to ask questions on the subject of the statement; these should be brief questions, not full speeches. I emphasise that questions should be directed to the Select Committee Chair and not the relevant Government Minister. Front Benchers may take part in the questioning.
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I am pleased to present the Work and Pensions Committee’s second report in our employment support for disabled people inquiry series. Our first report, “Disability at Work”, examined workplace issues impacting on disabled people and those with long-term health conditions, who I will now refer to as disabled people. These include challenges finding employment and then staying in work. Today’s report looks at the Government’s Connect to Work programme, an employment support programme that aims to reduce health and disability-related economic inactivity.
One of our labour market’s most persistent and challenging issues is the disability employment gap. With nearly one in four of the working-age population being disabled, equivalent to 10.4 million disabled people, it is quite staggering that only 5.5 million disabled people are employed when we know millions more want a job. It is a disability employment rate of 52.8%, compared with 82.5% for non-disabled people—a disability employment gap of nearly 30%. After historical falls, the gap has remained around 30% since 2012, and it remains above the OECD average.
Disabled people and people living in disabled households are far more likely to live in poverty than any other group. The extra costs that disabled people face and the lack of employment opportunities are key factors. As most disabilities are acquired, many disabled people have been employed before becoming inactive or unemployed. Their skills and experience are being wasted—a lost opportunity for the individuals, their families, and indeed the country. Last year, the Committee commissioned an economic analysis of the potential savings in Department for Work and Pensions spending and returns to the Exchequer from programmes like Connect to Work, and how such programmes could make that difference. That analysis was modelled on previous successful employment support programmes, and the economists estimated that if 5% of currently unemployed or inactive people—including disabled people—moved into employment, that would generate £20 billion over the life of the Parliament.
The Committee’s inquiry on employment support for disabled people showed that there are multiple barriers to work, including features of the workplace itself, issues preventing people from finding and getting into work, and things making it difficult to remain in work. Rather than attempting to cover all those issues in a single report, we felt it would be much more helpful to produce a report on each aspect. We also hope to report on Access to Work once the Government have published their proposals for reforming that scheme, which we hope will be very soon.
Our “Disability at Work” report highlighted the structural and cultural factors in workplaces that continue to limit opportunity. We found that barriers facing disabled people in workplaces are present across all stages and aspects of employment, from recruitment to workplace adjustments, employer attitudes and opportunities for progression. The report I present today complements that report by focusing on the support people need before entering work, or when they need help to get there. Our message is clear: closing the disability employment gap requires a joined-up system, not isolated programmes.
Let me recognise the significance of Connect to Work, a major, evidence-based programme with real potential. Launched in October 2024, it is intended to support up to 300,000 people—principally disabled people—into sustained paid employment over five years. It is part of the Government’s broader welfare reform strategy to reduce health-related economic inactivity, a strategy that is both economically important and, more importantly, central to improving lives.
The Committee is clear that we welcome Connect to Work. The programme is voluntary, grounded in well-established supported employment models, and combines national scale with local flexibility, offering scope for more tailored and responsive support. Models such as individual placement and support, and the supported employment quality framework, demonstrate strong outcomes in sustained employment, as well as in confidence, skills and wellbeing.