Demand for Addressing Wage Disparity Soars Among UK Workers: Strong Backing for Compulsory Reporting of Disability and Ethnicity Pay Gaps
In the UK, a significant number of workers have expressed concern over pay-related stress and anxiety, with nearly half (49%) taking time off in the past 12 months due to issues related to pay, finances, or the cost of living [1]. This issue has sparked a growing movement for greater transparency and action against pay inequality.
Tom Heys, a pay gap expert at Lewis Silkin, highlights the importance of transparency and the desire of employers to do the right thing, but emphasizes that they need certainty and support to move from intention to action [2].
Campaigns such as Britain's Ethnicity Bill, led by non-profit organisation People Like Us, are pushing for change. The bill aims to hold the UK government accountable for mandating ethnicity pay gap reporting and implementing the Equality (Race and Disability) Bill [3]. People Like Us has also launched an online tool to raise awareness of lost earnings for ethnic minority workers due to pay gaps [4].
The Equality (Race and Disability) Bill, currently in development, is expected later in 2025, and is separate from but related to the Employment Rights Bill, which is progressing through Parliament [5]. The bill is expected to introduce stronger enforcement mechanisms and possibly mandatory reporting requirements for ethnicity and disability pay gaps.
The survey of 2,000 working professionals in the UK shows overwhelming support for mandatory reporting on both disability and ethnicity pay gaps [6]. Nearly eight in ten (78%) believe employers should have to compare the pay of employees performing work of equal value, and over three-quarters (77%) agree that employers should have to publish the salary range for a job in a job advert [7].
Moreover, 75% of workers agree that employers should actively tackle barriers hindering fair recruitment and progression, as pay inequality persists when women, ethnic minority, and disabled employees are concentrated in lower-paid roles and excluded from leadership [8].
The findings also suggest that pay secrecy perpetuates discrimination and fuels workplace inequality, with over two-thirds suspecting that pay secrecy is directly fueling inequality [9]. Companies may lose out on talent due to lack of salary transparency, as on average, workers have not applied to a job because there was no salary range twice in the last year [10].
The directive, currently being rolled out across all 27 EU member states, requires employers to publish salary ranges, bans them from asking about salary history, and gives rights to find out the pay of others doing similar work [11].
The FCA has voluntarily reported its ethnicity and disability pay gap data, showing improvements but also ongoing disparities [3]. However, mandatory reporting is not yet in force in the UK, but developments are underway and closely monitored.
Sheeraz Gulsher, co-founder of People Like Us, urges the government to move quickly with the bill to create a fairer workplace environment for all [3]. James Taylor, strategy director at disability equality charity Scope, states that these findings send a strong message that disabled workers want and deserve transparency on pay, and the rest of the country agrees with them [12].
For those applying for jobs, 56% have been put off a job application because there was no salary range [13]. More than nine in ten (92%) expect firms to implement remedial measures or provide clear justifications whenever discrepancies are found [14].
In conclusion, the Equality (Race and Disability) Bill is expected as a new legislative step later in 2025, building on consultations and evidence gathering completed mid-year [1]. Mandatory ethnicity and disability pay gap reporting is currently not mandatory but is widely advocated for by UK workers and campaigners [4][5]. Some employers are voluntarily reporting pay gap data, showing continued disparities despite progress [3]. The government’s roadmap suggests phased reforms starting at Royal Assent through to 2027, but final details and statutory requirements around mandatory ethnicity pay gap reporting await the new Bill and further parliamentary stages [1].
To learn more about Britain's Ethnicity Bill and its online tool, visit https://britainsethnicitybill.plu.org.uk/
References: [1] Equality (Race and Disability) Bill, gov.uk, accessed 2023-03-25 [2] Lewis Silkin, accessed 2023-03-25 [3] People Like Us, accessed 2023-03-25 [4] People Like Us, Britain's Ethnicity Bill, accessed 2023-03-25 [5] Employment Rights Bill, gov.uk, accessed 2023-03-25 [6] Britain's Ethnicity Bill, survey results, accessed 2023-03-25 [7] Britain's Ethnicity Bill, survey results, accessed 2023-03-25 [8] Britain's Ethnicity Bill, survey results, accessed 2023-03-25 [9] Britain's Ethnicity Bill, survey results, accessed 2023-03-25 [10] Britain's Ethnicity Bill, survey results, accessed 2023-03-25 [11] EU Pay Transparency Directive, europarl.europa.eu, accessed 2023-03-25 [12] Scope, accessed 2023-03-25 [13] Britain's Ethnicity Bill, survey results, accessed 2023-03-25 [14] Britain's Ethnicity Bill, survey results, accessed 2023-03-25
- In the realm of business and careers, gaining transparency about ethnicity pay gaps could be a significant step towards addressing pay disparities and fostering a more inclusive work environment, which is essential for diversity-and-inclusion initiatives.
- To ensure personal-finance wellbeing and foster trust among workers, mandatory reporting of both disability and ethnicity pay gaps could help in eliminating pay secrecy and promoting fairness in the UK job market.
