However the preparation of social and health services are not yet upto the mark to support disabled people into work and hence so far it is unclear whether it is ready to spend extra money to make for those who have more than moderate impairments a reality.One reason why strategy is made for inclusion of disabled people in New Labour labourmarket is increase in number of people claiming benefits for disability since 1980.The cost of these benefits increased four times within span of 18 years because of the increase in the period of time for which people gained them(Berthoud, 1998).
The relative increase in the availability of labour due to increase in unemployment in 1980s also made employers more selective in choice of staff as a result of which disabled people were excluded from workforce.Although the New labour policy for providing work to disabled people is extensively focused on the supply side of labour market measures to promote work incentives has failed to generate enough employment opportunities(Hyde, 2000).
If disabled people do enter employment market they are likely to gain manual, unskilled or part-time jobs. However, as Hyde says that reserve army thesis cannot properly explain present government policy because it is not responsive to labour shortage. What this policy clearly does is that it reinforces a work ethic and increase the functioning of labour market by enhancing competition for jobs. Thus investment on the in work benefits and other measures to encourage the disabled to seek work may be viewed as an investment in the effectiveness of the labour market rather than as a financial burden on the state liketraditional disability benefits. This extension of the in-work benefit is different from the Thatcherite strategy of simply decreasing the out of work benefits.