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Education and Employment

UK introduces mandatory ethnicity and disability pay gap reporting

young woman in wheelchair with colleagues working in office

Minority ethnic groups and people with disabilities are to benefit as the government commits to introducing mandatory ethnicity and disability pay‑gap reporting for large employers.

Firms with 250 or more employees will be required to publish 6 key pay‑gap metrics and new workforce composition data.

The government’s response to the consultation on mandatory ethnicity and disability pay gap reporting, published today, shows widespread support for introducing this legislation. 87% of respondents agreed large employers should report their ethnicity and disability pay gaps to increase transparency and help tackle barriers in the workplace.

The consultation response also features indicative clauses for the new legislation and how it will work in practice. This has been drafted in collaboration with businesses who are already reporting on their ethnicity and disability pay differences on a voluntary basis. Legislation will seek to build on the current gender pay gap reporting to simplify the process and make it easy for employers to record their data.

“No-one deserves to be held back at work because of their ethnicity or disability. Everyone should be able to expect fair pay and progression opportunities for their hard work.” Said Seema Malhotra MP, Minister for Equalities.

“Disabled people deserve the same chance as everyone else to be rewarded fairly at work, but the fact is that pay gaps exist.” Said Rt Hon Sir Stephen Timms MP, Minister of State for Social Security and Disability.

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