Access to Work figures appear to show spending cuts, but DWP insists there is an explanation

New government figures appear to show significant cuts to spending on the flagship Access to Work scheme, just as Labour ministers are insisting they want to support more disabled people into work.

The government figures add weight to concerns repeatedly raised about Access to Work (AtW) by disabled campaigners since Labour came to power under Sir Keir Starmer in July 2024.

The Department for Work and Pensions (DWP) insisted yesterday (Wednesday) that there was an explanation for the fall in spending, and that average AtW payments remained roughly the same in real terms between 2024-25 and 2025-26.

But the annual DWP figures show that spending on the scheme plunged in real terms by nearly seven per cent, from £331.7 million in 2024-25 to £309.1 million in 2025-26, a fall of nearly £23 million.

And because the number of people who received an AtW payment rose in 2025-26 (from 74,190 customers to 78,440), average AtW spending per recipient fell in real terms even more sharply, from £4,471 to £3,940, a drop of about 12 per cent.

Disabled campaigners have been raising concerns about existing recipients of support having their budgets slashed since at least October 2024, while disabled workers began “sounding the alarm” about the scheme five years ago.

Those working in the creative and cultural sectors said two years ago that they were increasingly seeing cuts to the support they receive through AtW.

They reported payments being stopped, cut or suspended by DWP, even as ministers were calling for more disabled people to be supported into work.

Two years on, ministers – including prime minister Andy Burnham – are still insisting they want to reduce spending on benefits by supporting more people into work.

But the DWP figures show that, rather than increasing spending on one of its flagship disability employment schemes, the Labour government appears to have cut spending instead.

DWP insisted yesterday that, although spending fell in 2025-26, and the number of AtW recipients rose, average payments per customer had remained approximately the same.

It said this was because its analysis looked at the month when AtW payments were agreed by the department, and not when those payments were received by the recipient.

DWP said this was particularly pronounced in 2024-25 because it was dealing with a backlog of outstanding Access to Work payment claims the department had not yet processed, and many of these payments were not actually received by disabled workers until 2025-26.

As a result, it said, spending appears higher in 2024-25 and lower in 2025-26.

Despite these claims, it was unable to say how large this adjustment was.

When asked about the apparent cut to spending, a DWP spokesperson said in a statement: “We do not recognise these figures.

“In 2025-26, 78,440 customers received an Access to Work payment, the highest number of customers to receive a payment.

“Whilst expenditure has decreased, average payments per customer have remained approximately the same.

“This is possible because when developing expenditure statistics, we consider when expenditure was reported, but for average payments statistics we consider when expenditure was received by customers.”

Despite the DWP explanation, there was concern at the apparent spending cuts among disabled activists.

Shani Dhanda, a disabled consultant, broadcaster and campaigner, and co-founder of the Access to Work Collective, said: “The accounting explanation does not change the reality for disabled people who rely on Access to Work.

“The collective continues to hear from people whose support has been reduced, suspended or withdrawn, alongside people facing lengthy delays, poor communication and uncertainty about whether they can continue doing their jobs.

“The government cannot claim to be breaking down barriers to work while the scheme designed to remove those barriers is failing the people who need it.

“Access to Work is essential employment support, not a nice-to-have.

“Behind every case is someone trying to earn a living, run a business or progress in their career.

“We need urgent action to properly fund and fix the scheme.

“Disabled people should not have to fight to access the support they need to work.”

David Buxton, chief executive of Action on Disability (AoD), said: “Whatever the explanation for these spending figures, the reality facing many disabled people who rely on Access to Work cannot be ignored.

“Access to Work is an essential investment in removing barriers to employment, enabling disabled people to use their skills, earn a living and remain in work.

“At Action on Disability, we have seen concerning evidence of reductions in individual support packages, delays and difficulties challenging decisions.

“These problems can put people’s employment and livelihoods at risk.

“We have raised these concerns directly with our local MP, Ben Coleman, and published our briefing and frontline evidence on AoD’s website.

“If DWP believes the apparent reduction in expenditure is simply an accounting issue, it should publish a clear breakdown to demonstrate this. Transparency is essential.

“However, the bigger issue is whether disabled people are receiving the support they actually need, rather than simply looking at average payments or overall expenditure.

“We need timely decisions, clear explanations for reductions, accessible appeal procedures and continued support while disputes are resolved.

“Disabled people should not have to risk losing their jobs because of administrative delays or unexplained reductions in support.

“The government cannot credibly promote its ambition to get more disabled people into employment without ensuring Access to Work is properly funded, accessible and effective.”

Jess Thom, co-founder of disabled-led arts company Touretteshero, who has herself been hit by cuts to the scheme, said: “Working disabled people began sounding the alarm about Access to Work five years ago, and since then our warnings have largely been ignored.

“The severity of the cuts and the misinformation surrounding them doesn’t surprise me at all.

“What astonishes me, though, is that the most brutal cuts have happened under a Labour government.

“They now have a huge task ahead of it to rebuild trust with disabled people across the country.”