This article is not a critique of the governments response rather a commentary of what I have read in the document. For clarity my focus is on the Ethnicity Pay Gap.
In June 2025 the government launched a consultation document on mandatory ethnicity and disability reporting. The objective was to gauge the appetite for mandatory reporting and to understand the thoughts of those participating in the consultation. Last week the government responded to the consultation which was greatly anticipated by many.
Hear are some highlights;
87% agreed large employers should have to report their ethnicity pay gaps, helping to increase transparency – Our research Impact of the Ethnicity Pay Gap on Black Women noted that 88.7% of our respondents wanted the government to introduce mandatory reporting on the Ethnicity Pay Gap – Research undertaken in 2022
84% of respondents agreed that employers should be required to report the same 6 calculations as gender pay gap reporting for ethnicity – Some data experts have evidenced that pay quartiles is the best way to report on data – One thing is evident, one size does not fit all, organisations need to identify what works for them utilising the guidance from the government.
83% agreed that large organisations should have to report on the overall composition of their workforce by ethnicity – A broad view of what is going in an organisation is important to understand what the data is evidencing.
86% agreed large employers should have to submit data on the percentage of employees who did not state their ethnicity – This is an Important one, many organisations do not report on employees who have not provided information.
81% of respondents agreed large organisations should have to produce an action plan to improve workplace equality for ethnic minority – A fundamental requirement for mandatory reporting. The Ethnicity Pay Gap Campaign has been advocating for this for many years
82% of those who responded say that Ethnicity Pay Gap reporting should have the same enforcement policy as gender pay gap reporting – I think enforcement should be more robust.
77% of respondents agreed that employers should collect ethnicity data using the GSS harmonised standards for ethnicity –This is a good start, they should however encourage organisations to drill down further. We already know that an Indian persons experience is often different from a Pakistani person, Equally a Caribbean person is likely to have a difference experience from an African person.
Here is the link for the consultation response in full – https://www.gov.uk/government/consultations/equality-race-and-disability-bill-mandatory-ethnicity-and-disability-pay-gap-reporting/outcome/consultation-on-mandatory-ethnicity-and-disability-pay-gap-reporting-government-response
It has taken 8 years of campaigning to get this point. Although a positive move, this is only the first stage. We have more work to do to ensure that legislation is passed to make it mandatory for Ethnicity Pay Gap reporting to become law. We cannot sit back and wait for things to happen, we have to continue to push forward, holding organisation and government to account on their commitment to pay equity.
Elections are fast approaching, we need to ensure that the current government make Ethnicity Pay Gap mandatory to report before the start of the new elections to ensure that it is safeguarded against any reproach by another party should they not be re-elected.
Organisations are already reporting, however not in great numbers. At the Ethnicity Pay Gap Summit this year, we discussed the importance of organisations not waiting for government to make Ethnicity Pay Gap reporting mandatory. Start now, follow the example of organisations that have already reported and reaped the benefits of doing so. If you start preparing now you will be ready for when it becomes law.
Community action must also play a part in moving things forward. There are organisations such as Money A&E, Rooted Finance, Black Equity Organisations and of course the #EthnicityPayGap Campaign who will continue to advocate for mandatory reporting and action to ensure pay equity.
Our work is not over until Ethnicity Pay Gap mandatory reporting becomes law.