London Daily

Focus on the big picture.
Friday, Oct 31, 2025

MPs attack ministers’ ‘nonsensical’ refusal to make firms reveal race pay gap

MPs attack ministers’ ‘nonsensical’ refusal to make firms reveal race pay gap

Tory chair of Commons committee says government lacks will to foster fairer society
A group of MPs has accused the government of lacking the “will or care” to create a fairer and more equal society, after it rejected calls to force companies to reveal the pay gap between white employees and others.

On Friday the government stated its intention to instead accept the recommendation of its controversial report on racial disparity, which was widely condemned by MPs, unions and equality campaigners as “divisive” and a missed opportunity for systematic change when it was published in March 2021.

In February, the cross-party women and equalities committee called for legislation to introduce mandatory reporting for companies with more than 250 employees, a requirement that has existed for the gender pay gap since 2017. It argued that mandatory reporting would help address pay disparities between employees from different ethnic backgrounds.

The government has backtracked on the issue of ethnicity reporting. In 2018 the Department for Business, Energy and Industrial Strategy launched a consultation that stated: “The government believes it is time to move to mandatory ethnicity pay reporting.” The consultation closed in January 2019, but the government is yet to publish a response. The minister Paul Scully promised in January that the government would respond “in due course” – a commitment reiterated on Friday.

The government said it would not make companies report their ethnicity pay gap, arguing the move would have “significant statistical and data issues” – instead saying it would give guidance to employers reporting their ethnicity pay gaps voluntarily.

The guidance includes advice on reporting the distinction between different ethnic groups and advice for employers in regions with statistically low numbers of people from ethnic minorities. Caroline Nokes, the Conservative chair of the women and equalities committee, said systems and structures were already in place for mandatory reporting, and added that the government had already stated it would address the stated difficulties around reporting in its guidance.

“Introducing mandatory ethnicity pay gap reporting for larger businesses would set the ball rolling, reducing inequalities between different ethnic groups,” she said.

“The government’s nonsensical response – which claims that gathering the necessary data would be too difficult, and then promptly outlines how this could easily be addressed – is disappointing. It makes clear that what is lacking in this administration is not resource or knowhow, but the will or care to foster a fairer and more equal society.”

In its response to the MPs, the government said it was accepting the recommendation made by the Commission on Race and Ethnic Disparities that ethnicity pay gaps should continue to be reported on a voluntary basis.

Its response stated that the government did not want to “impose new reporting burdens on businesses”, adding: “Ethnicity pay gap reporting is just one type of tool to assist employers in creating a fairer workplace. It may not be the most appropriate tool for every type of employer seeking to ensure fairness in the workplace.”
Newsletter

Related Articles

0:00
0:00
Close
Shawbrook IPO Marks London’s Biggest UK Listing in Two Years
UK Government Split Over Backing Brazil’s $125 Billion Tropical Forest Fund Ahead of COP30
J.K. Rowling Condemns Glamour UK Feature of Nine Trans Women as 'Men Better at Being Women'
King Charles III Removes Prince Andrew’s Titles and Orders His Departure from Royal Lodge
UK Finance Minister Reeves Releases Email Correspondence to Clarify Rental-Licence Breach
UK and Vietnam Sign Landmark Migration Deal to Fast-Track Returns of Irregular Arrivals
UK Drug-Pricing Overhaul Essential for Life-Sciences Ambition, Says GSK Chief
Princesses Beatrice and Eugenie Temporarily Leave the UK Amid Their Parents’ Royal Fallout
UK Weighs Early End to Oil and Gas Windfall Tax as Reeves Seeks Investment Commitments
UK Retail Inflation Slows as Shop Prices Fall for First Time Since Spring
Next Raises Full-Year Profit Guidance After Strong Third-Quarter Performance
Reform UK’s Lee Anderson Admits to 'Gaming' Benefits System While Advocating Crackdown
United States and South Korea Conclude Major Trade Accord Worth $350 Billion
Hurricane Melissa Strikes Cuba After Devastating Jamaica With Record Winds
Vice President Vance to Headline Turning Point USA Campus Event at Ole Miss
U.S. Targets Maritime Narco-Routes While Border Pressure to Mexico Remains Limited
Bill Gates at 70: “I Have a Real Fear of Artificial Intelligence – and Also Regret”
Elon Musk Unveils Grokipedia: An AI-Driven Alternative to Wikipedia
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Amazon Announces 14 000 Corporate Job Cuts as AI Investment Accelerates
UK Shop Prices Fall for First Time Since March, Food Leads the Decline
London Stock Exchange Group ADR (LNSTY) Earns Zacks Rank #1 Upgrade on Rising Earnings Outlook
Soap legend Tony Adams, long-time star of Crossroads, dies at 84
Rachel Reeves Signals Tax Increases Ahead of November Budget Amid £20-50 Billion Fiscal Gap
NatWest Past Gains of 314% Spotlight Opportunity — But Some Key Risks Remain
UK Launches ‘Golden Age’ of Nuclear with £38 Billion Sizewell C Approval
UK Announces £1.08 Billion Budget for Offshore Wind Auction to Boost 2030 Capacity
UK Seeks Steel Alliance with EU and US to Counter China’s Over-Capacity
UK Struggles to Balance China as Both Strategic Threat and Valued Trading Partner
Argentina’s Markets Surge as Milei’s Party Secures Major Win
British Journalist Sami Hamdi Detained by U.S. Authorities After Visa Revocation Amid Israel-Gaza Commentary
King Charles Unveils UK’s First LGBT+ Armed Forces Memorial at National Memorial Arboretum
At ninety-two and re-elected: Paul Biya secures eighth term in Cameroon amid unrest
Racist Incidents Against UK Nurses Surge by 55%
UK Chancellor Rachel Reeves Cites Shared Concerns With Trump Administration as Foundation for Early US-UK Trade Deal
Essentra plc: A Closer Look at a UK ‘Penny Stock’ Opportunity Amid Market Weakness
U.S. and China Near Deal to Avert Rare-Earth Export Controls Ahead of Trump-Xi Summit
Justin time: Justin Herbert Shields Madison Beer with Impressive Reflex at Lakers Game
Russia’s President Putin Declares Burevestnik Nuclear Cruise Missile Ready for Deployment
Giuffre’s Memoir Alleges Maxwell Claimed Sexual Act with Clooney
House Republicans Move to Strip NYC Mayoral Front-Runner Zohran Mamdani of U.S. Citizenship
Record-High Spoiled Ballots Signal Voter Discontent in Ireland’s 2025 Presidential Election
Philippines’ Taal Volcano Erupts Overnight with 2.4 km Ash Plume
Albania’s Virtual AI 'Minister' Diella Set to 'Birth' Eighty-Three Digital Assistants for MPs
Tesla Unveils Vision for Optimus V3 as ‘Biggest Product of All Time’, Including Surgical Capabilities
Francis Ford Coppola Auctions Luxury Watches After Self-Financed Film Flop
Convicted Sex Offender Mistakenly Freed by UK Prison Service Arrested in London
United States and China Begin Constructive Trade Negotiations Ahead of Trump–Xi Summit
U.S. Treasury Sanctions Colombia’s President Gustavo Petro over Drug-Trafficking Allegations
Miss USA Crowns Nebraska’s Audrey Eckert Amid Leadership Overhaul
×