London Daily

Focus on the big picture.
Thursday, Sep 03, 2026

Business, unions and EHRC press government on ethnic pay gap reporting

Business, unions and EHRC press government on ethnic pay gap reporting

Letter signed by group says good reporting can help to better understand and address pay disparities
The UK’s largest business lobby group has joined the Trades Union Congress (TUC) and the human rights watchdog in calling for mandatory ethnicity pay gap reporting, saying data collection will help tackle racial inequalities at work.

In a letter to the Cabinet Office minister Michael Gove, the Confederation of British Industry (CBI), TUC and Equality and Human Rights Commission, said the move would help draw attention to pay disparities and a lack of minority representation across senior positions, and hopefully spark action by employers.

It would follow in the footsteps of gender pay gap reporting, which has been a legal requirement for businesses with more than 250 employees since 2017. The data has highlighted the relatively small number of women making it to high-paid senior positions across UK firms, and in some cases has revealed that women have been paid less than men in similar positions.

“We’re asking the government to make it mandatory for employers to report on their ethnicity pay gaps, building on the successful framework already in place for gender,” the letter said. “Reporting, done well, can provide a real foundation to better understand and address the factors contributing to pay disparities.”

Some businesses – including banks such as Barclays, NatWest and Lloyds – have already begun voluntarily reporting their ethnicity pay gaps. However, the TUC said making it mandatory was “an obvious first step in helping to improve transparency” and bringing about widespread change across the labour market.

“As more companies publish pay gap data alongside clear action plans to tackle disparities, momentum can turn into lasting change,” Matthew Fell, the CBI’s chief UK policy director, said. “Businesses better understand the concerted and meaningful action they need to take – improving how they attract, hire and promote ethnically diverse employees all the way to the boardroom, to creating inclusive workplaces where talented individuals can progress.”

The joint letter urges ministers to set a clear timetable for bringing pay reporting into law.

“Everyone deserves the chance to thrive at work, and to have a decent, secure job they can build a life on,” TUC general secretary Frances O’Grady said. “But the sad reality is that even today race still plays a significant role in determining people’s pay and career progression.

“This problem isn’t going to magic itself away. Without robust and urgent action many workers will continue to be held back,” O’Grady added.

A government spokesperson said: “The Commission on Race and Ethnic Disparities published its independent report earlier this year, which included recommendations on ethnicity pay gap reporting. We are considering the commission’s findings on this matter alongside feedback to our consultation on this issue and other work, and will respond to the commission’s report in due course.”
Newsletter

Related Articles

0:00
0:00
Close
UK Marks Merchant Navy Day With Tribute to Civilian Seafarers
Burnham Pays Tribute to Two Police Officers Killed on Duty in Northern England
Booking.com Left Fake Downing Street Listing Online for Two Months, Which Says
Burnham and Macron to Review UK-France Cooperation on Channel Crossings
UK Business Confidence Improves Slightly but Investment Concerns Persist
Burnham Faces Pressure Over Future North Sea Oil and Gas Licences
Burnham Pushes Wider English Devolution Through ‘Number Ten North’
British Chambers of Commerce Raises 2026 UK Growth Forecast to 1%
Keir Starmer Resigns as Holborn and St Pancras MP, Triggering By-Election
UK Chancellor Faces Tighter Budget Headroom as Long-Term Borrowing Costs Rise
UK Government Weighs Thames Water Nationalisation as Financial Crisis Deepens
Prime Minister Andy Burnham Faces First Commons Questions Over Tax and Spending Plans
Eleven British Seafarers Receive Merchant Navy Medal
Which? Creates Fake 10 Downing Street Rental Listing to Expose Booking.com Vetting Weaknesses
BP Appoints New Chairman in Effort to Stabilise Leadership
Aberdeen Sells Hydrogen Bus Fleet at Heavy Loss After Green Transport Experiment
UK Records Hottest Summer on Record as Climate Change Intensifies Extreme Heat
Scotland Pledges to End Temporary Accommodation for Children and Build 111,000 Affordable Homes
DNO Agrees $396 Million Deal to Acquire Capricorn Energy
Uber and Wayve Launch UK’s First Supervised Autonomous Ride-Hailing Service in London
Britain Expected to Avoid New US Tariffs Targeting European Union
Middle East Conflict Pushes UK Energy Costs Higher and Revives Inflation Concerns
UK Growth Forecast Cut to 1% Through 2027 as Youth Unemployment Is Projected to Rise
Andy Burnham Links Weak UK Growth to Brexit in First Full Commons Session as Prime Minister
Keir Starmer Resigns as MP, Triggering Holborn and St Pancras By-Election
UK Business Confidence Improves but Remains Deeply Negative
Aberdeen Hydrogen Bus Sale Recovers Just Six Pence for Every Pound Invested
Which? Exposes Booking.com Verification Failures With Fake 10 Downing Street Listing
British Business Bank Invests Up to £46 Million in Deep-Tech Startup Fund
Scottish Government Puts Violence Against Women at Center of Legislative Program
FCA Eases UK IPO Rules to Strengthen London’s Listing Market
UK Likely to Avoid Next US Tariff Measures as Washington Targets EU
Macron Visits UK for Bayeux Tapestry Exhibition and Border Security Talks
British Chambers of Commerce Cuts UK Growth Outlook to 1% for 2026 and 2027
Keir Starmer Resigns as MP for Holborn and St Pancras, Triggering By-Election
Prime Minister Andy Burnham Unveils Devolution and Cost-of-Living Agenda
UK Borrowing Costs Surge as 30-Year Gilt Yield Reaches 5.88%
Cleveland Police Receive £2 Million to Tackle Serious Crime in Middlesbrough
Number of Young People in England Without a Close Friend Reaches Record Level
Five Arrested After Newborn Baby Dies From Stab Wounds in Sheffield
Nigel Farage Faces Questions Over Reported Second Parliamentary Standards Investigation
UK Retirement Funding Requirement Rises by £64,000 Compared With 2021
UK House Prices Rise for First Time Since April, Nationwide Says
FCA Chief Faces Allegations of Intimidating Consumer Group Over £9 Billion Car Loan Inquiry
Scottish Government Presses Ahead With Cap on Essential Food Prices
Burnham Government Moves to Overhaul Early Prison Release Scheme
UK Records Hottest Summer on Record in 2026, Met Office Says
UK Government Announces Major Reset of Diplomatic Policy Towards Israel
UK Pushes Back After Trump Reopens Falkland Islands Sovereignty Dispute
Keir Starmer Resigns as MP, Triggering Holborn and St Pancras By-Election
×