The fund helps people and employers cover costs of disabilities that might be a barrier to work. The biggest users of this fund are people who have difficulty seeing and people who have difficulty hearing.

You said "As part of our objective to achieve full employment, we will aim to halve the disability employment gap: we will transform policy, practice and public attitudes, so that hundreds of thousands more disabled people who can and want to be in work find employment," 

By cutting this fund you will be stopping many disabled people from being able to find and stay in a job which will mean they will be forced to stay on benefits which is against your ideals. If a disabled person wants to work then you should encourage them and assist them, not actively cut a grant which helps them get a job