September 2026
Yesterday, the government launched a consultation on mandatory pay gap reporting on disability and ethnicity, which will inform its forthcoming Draft Equality (Race and Disability) Bill.
Pay gap reporting in the UK refers to the legal requirement for certain employers to publish data on pay disparities within their workforce. The most well-known form is gender pay gap reporting, which employers of 250 or more members of staff are required to do under the Equality Act 2010 (Gender Pay Gap Information) Regulations.
Typically, employers would report mean and median pay gaps, bonus pay gaps, pay quartiles, and the proportion of employees receiving bonuses.
Currently, organisations may also voluntarily report on ethnicity, disability, or other pay gaps to promote workplace transparency and equality.
The government plans to introduce the requirement for relevant companies to report on ethnicity and disability reporting as well, alongside incoming legislation that will explicitly include the right to equal pay for ethnic minority and disabled workers.
The consultation will run until 10th June 2025
It will explore:
Whether the new reporting should include the same metrics, method and reporting dates as used in gender pay gap reporting.
What standards and classifications should be used for ethnicity reporting.
Methods of calculating and reporting on both ethnicity and disability.
Whether employers would be required to create an action plan to improve workplace equality for ethnic minorities and disabled members of the workforce.
Read the consultation document and respond.
Most importantly, if you employ more than 250 employees, you should take steps to adapt your infrastructure for gender pay gap reporting to employees with disabilities and those from ethnic minorities.
For help in doing this, contact our Employment team.