Disability, employment and the interface with income support policies

In this paper we examine the relationship between disability and paid employment in the context of recent policy changes associated with the former government’s ‘welfare-to-work’ package. We consider the question about whether a high level of disability income provision increases or decreases the risk of people being outside the labour market. The conventional assumption in welfare reform debates is that a more generous payment rate provides a disincentive to seek paid employment. What we argue in this paper, based on international research and a qualitative study undertaken by the authors, is that the reverse is more likely to be true. A lower rate of payment increases the risk of poverty and reduces the chance that people will be able to meet the costs of seeking and maintaining employment. Lifting the employment rate of people with a disability requires a comprehensive strategy that focuses on the adequacy of the income support system, accessible education and employment and an employment services system that is able to meet a diversity of aspirations and skills