London Daily

Focus on the big picture.
Sunday, Sep 20, 2026

UK ethnic pay gap hits lowest since 2012 but still vast in London

UK ethnic pay gap hits lowest since 2012 but still vast in London

While the gap stands at just 2.3% nationally, workers from ethnic backgrounds earn on average almost 25% less than white counterparts in London.
The pay gap between white people and ethnic minorities has narrowed to its lowest level since 2012 but remains stark in London, according to new data.

The Office for National Statistics on Monday said the gap in average hourly wages earned by white people and non-white groups fell to 2.3% in the UK in 2019. The pay gap was down from 3.8% in 2018 and a high of 8.4% in 2014.

The average hourly wage for a worker from an ethnic minority background stood at £12.11 last year, compared with £12.40 for a white worker.

The data hides big disparities between different ethnic groups. People from Pakistani, African, and Bangladeshi backgrounds earned the lowest average wages of the 17 ethnic groups looked at by the ONS. Pakistanis and Bangladeshi workers earn about 15% less than white British employees.

George Bangham, an economist at the Resolution Foundation, said pay gaps for some groups such as Black African and Black Caribbean had actually got worse.

“It cannot be right that a Black African worker earns 13% less per hour than a white British worker of a similar age, and in a similar job,” Bangham said. “A pay penalty that large will reflect a mixture of discrimination and wider disadvantage.”

At the other end of the scale, some ethnic minority groups earned more than the average white worker. Indian and Chinese workers both earned a higher average hourly rate than white workers. When white Irish people are separated out as a distinct ethnic group, they were the highest earners with an average hourly rate of £17.55. That was 40% above the average wage of their British counterparts.

While the national ethnic pay gap is narrowing, it remains stark in the capital. Non-white workers earn almost a quarter less than white people in London. The ethnic pay gap was 23.8% in London. The smallest gap was in Wales, where it stood at just 1.4%.

The ethnic pay gaps is also more pronounced for men than women. White men earned 6.1% more than ethnic minority men on average, while white women earned 2.1% more than ethnic minority women.

Frances O’Grady, general secretary of the Trade Union Congress, said: “BME men and women are overrepresented in undervalued, low-paid and casual jobs, with fewer rights and no sick pay. During the pandemic many of them have paid for these poor working conditions with their lives.

“Enough is enough. Ministers must take bold action to confront inequality and racism in the labour market. And the obvious first step is to introduce mandatory ethnicity pay gap reporting without delay.”

Bangham also urged the government to mandate reporting on ethnic pay gaps.

“Greater transparency is needed for firms to confront these pay gaps, and the government can help this happen by extending gender pay gap auditing to include ethnicity too,” he said.
Newsletter

Related Articles

0:00
0:00
Close
Addison Lee Founder Loses £20 Million UK Tax Tribunal Case
BrewDog Creditors Face Losses on About £190 Million of Debt
Harrods Seeks to Recover Abuse Compensation Costs From Mohamed Al Fayed’s Estate
Ed Davey Targets Reform UK as Liberal Democrat Conference Opens
Great Britain Retail Sales Rise 0.5% in August
NHS England Approves Life-Extending Treatment for Incurable Breast Cancer
Proposals to Limit NHS ADHD Diagnoses Draw Criticism From Patient Groups
Resolution Foundation Warns of Housing Cost Crunch for Low-Income UK Families
BBC Cash Reserves Fall to Decade Low as Annual Deficit Reaches £121 Million
Millisecond Software Error Triggered Major UK Air Traffic Control Disruption
Twenty Women Underwent Unnecessary Mastectomies During NHS Cancer Care
Sensitive UK Police Data Found Vulnerable to Access by Foreign Actors
British Steel Faces Renewed Pressure for a Long-Term Financial Plan
MPs Urge Government to End Thames Water Restructuring Talks With U.S. Hedge Funds
Andy Burnham Warns of Difficult UK Budget Choices as Inflation Returns to 3.1%
England Tightens School Food Standards With Restrictions on Deep-Fried and High-Sugar Foods
Oxfordshire Village Votes Symbolically to Leave UK Over Proposed Asylum Centre
Michael Marra Elected Leader of Scottish Labour
BBC Cash Reserves Fall Sharply as Financial Pressures Mount
George Osborne Calls for UK to Rejoin EU Customs Union
UK Explores Joining Canada-Led Global Defence Bank
Thirlwall Inquiry Highlights Management Failures Surrounding Lucy Letby Crimes
Parliamentary Committee Calls for New UK Law to Address AI Risks to Human Rights
UK Considers Giving Regional Mayors Greater Oversight of Water Companies
UK Opposition Presses Burnham for Stronger Response to Russian Security Threats
Reform UK Faces Scrutiny Over £72 Million in Donations as Political Finance Rules Tighten
Millisecond Software Failure Behind UK Air-Traffic Outage That Cancelled More Than 2,000 Flights
Bank of England Holds Interest Rate at 3.75% as Energy Prices Complicate Inflation Outlook
Burnham Warns of Difficult Choices in October Budget as UK Inflation Rises to 3.1%
Addison Lee Founder Loses £20.5 Million Non-Domicile Tax Case
BrewDog Creditors Face Heavy Losses After Collapse
Thirteenth Metropolitan Police Officer Dismissed Over Charing Cross Conduct
Oxfordshire Village Votes Symbolically to Leave UK Over Asylum Accommodation Plan
NHS Approves Life-Extending Treatment for Women With Incurable Breast Cancer
Software Defect Blamed for Major UK Air Traffic Disruption
Twenty Women Underwent Unnecessary Mastectomies at County Durham NHS Trust
British Steel Costs Taxpayers £1.3 Million a Day as MPs Demand Long-Term Plan
UK Parliament Advances Sovereign Grant Reform Setting Royal Funding at £99.9 Million
King Charles Urges Human-Centred Approach to Artificial Intelligence at Scotland Summit
House of Lords Begins Scrutiny of Voting-Age and Political Finance Reforms
UK Labour Market Shows Growing Divide Between Younger and Older Workers
Nearly Seven in 10 UK Small Businesses Delay or Cancel Growth Plans as Costs Rise
Andy Burnham Reaffirms UK Net-Zero Target Amid North Sea Energy Debate
UK Parliament Demands Credible Financial and Decarbonisation Plan for British Steel
MPs Urge Government to Reject Thames Water Rescue Deal and Prepare Special Administration
Bank of England Holds Rate at 3.75% as Energy Shock Raises Inflation Risks
TUC Calls for Social Energy Tariff Funded by Higher Taxes on Bank Profits
UK Parliament Enters Conference Recess After Advancing Sovereign Grant Legislation
King Charles Hosts Artificial Intelligence Leaders at Dumfries House Summit
Nearly Seven in Ten UK Small Businesses Delay or Cancel Growth Plans as Costs Rise
×