Enabling Work - a Scope report

Publisher: 
Year of Publication: 
2015
Type: 

Scope has published a new report on the economic impact of rising disability employment rates. Landman Economics have modelled the economic impact of a five or 10 percentage point increase in the disability employment rate by 2030. This report explored their findings, and points to some of the actions which could enable such an increase.

Landman Economics found three key economic findings around increasing the employment rate of disabled people.

Increase in Gross Domestic Product (GDP)

The impact on the economy of a rise in the disability employment rate will be significant. A rise of just five percentage points would lead to an increase in GDP of £23 billion by 2030. This is equal to 0.9 percent of total predicted GDP in 2030. A 10 percentage point rise in the employment rate for disabled people would result in a rise of £45 billion. This is equal to 1.7 percent of total predicted GDP in 2030.

Gains to the public purse

A five percentage point rise in the employment rate of disabled adults (below pension age) would mean that the Exchequer would gain £6 billion by 2030. A 10 percentage point rise would result in a £12 billion gain to the public purse.

Relative and absolute poverty among disabled people

An increase in the disability employment rate would reduce relative and absolute poverty for disabled people. A five or ten point rise in employment would reduce absolute poverty by two or three percentage points and relative poverty by three or five points. If the disability employment rate stays the same, with no changes in the benefits system then relative poverty will rise from 19 percent to 30 percent. Absolute poverty will rise from 20 to 24 percent.