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Disabled employees under strain as PIP cut rumours grow

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March 12, 2025
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Disabled employees under strain as PIP cut rumours grow

Rumours of potential government policy changes — including over £5 billion in disability benefit cuts and possible reforms to Personal Independence Payments (PIP) — could lead to more disabled people entering workplaces that lack essential accommodations, according to new research from consultancy

The study, by consultancy firm Barnett Waddingham (BW) shows 79% of disabled employees have experienced burnout, almost double the rate of their non-disabled peers, while 86% of physically disabled employees report work-related health issues compared to 35% of non-disabled workers. A quarter of disabled employees feel their employers fail to provide reasonable adjustments for neurodiversity.

Worries about discrimination compound these challenges: more than half of disabled employees (52%) have refrained from disclosing a neurodiverse condition at work for fear of bias. This environment contributes to 76% of disabled staff feeling inadequate, a figure that stands at just 37% for non-disabled colleagues.

If, following the Spring Statement on 26 March, the government moves forward with the rumoured measures, it will push more disabled people into work. Yet employers may be underprepared for this influx. Thirty per cent of disabled workers say paid mental health leave would be the most valuable support, while 26% prioritise flexible work options and another 26% want regular mental health check-ins.

Julia Turney, Partner and Head of Platform and Benefits at BW, said: “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.”

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