DISABLED people are still “significantly disadvantaged” in the labour market, the TUC warned yesterday.

New union report Disability and Employment also warned that disabled people are being badly punished by benefit sanctions.

Published on day two of the annual TUC Disabled Workers’ Conference, the report makes a series of recommendations to tackled the inequality faced by disabled people in the workplace.

Researchers found that disabled people generally have much lower employment rates than non-disabled people — an average of 31 per cent lower from 2008 to 2013.

The employment rate for disabled men is 36 per cent lower than the non-disabled rate — and for women it is 39.5 per cent lower.

People with mental illness related disabilities are among the least likely to be employed of all disabled people.

The TUC is calling on the government to do more to end the “disability penalty” and improve employment rates for disabled people, including reform of the benefit sanctions regime to protect and support people with mental illness.

TUC general secretary Frances O’Grady (pictured) said: “Disabled people who are looking for a decent job need a government that’s on their side, not on their backs. But cuts to disability benefits and harsh benefit sanctions are preventing employment rates for disabled people improving as quickly as they could.

“Many more disabled people want to be in work, but are held back by problems like employer prejudice, additional costs to access work, and a benefits regime that’s too focused on punishment instead of support.

“Disabled women face stronger barriers to accessing work than disabled men. Ministers should investigate why this gender gap exists, so that disabled women seeking help from schemes like the Work Programme and Access to Work can get support that’s better tailored to their needs.”