London Daily

Focus on the big picture.
Friday, Oct 23, 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
Piper Tomahawk Aircraft Crash Near Drymen in Stirling Claims Two Lives as Investigators Deploy
North Sea Transition Authority Approves Jackdaw Gas Field Production After Ministerial Authorization
Government Injects One Hundred and Forty Million Pounds to Expand Urgent Care Ahead of Winter Crisis
Department of Health Warns Further Pay Rises Will Derail National Health Service Waiting List Targets
Major Environmental Emergency Declared in South Wales Following Aerospace Kerosene Spill
Tank Barrel Production Returns to Britain as Defence Contractors Accelerate Domestic Rearmament
Government Approves Controversial Jackdaw Gasfield Development in the North Sea
National Health Service Maternity Safety Review Condemned Over Flawed Artificial Intelligence Integration
Dozens of United Kingdom Government Services Taken Offline Amid Critical Software Vulnerability
Barclays Announces Five Thousand Job Cuts Citing Artificial Intelligence Productivity Gains
Treasury Relaxes Post-Financial Crisis Accountability Rules for City of London Executives
United Kingdom Government Issues Unprecedented Guidance Urging Citizens to Stockpile Essential Supplies
United Kingdom Consumer Inflation Accelerates to Eleven-Month High Driven by Transport Costs
United Kingdom Public Sector Net Debt Breaches Three Trillion Pounds Ahead of Autumn Budget
Department for Science, Innovation and Technology Commits Fifty Million Pounds to Establish Regional Artificial Intelligence Innovation Clusters
Ofgem Directs Major Energy Suppliers to Expand Vulnerable Household Support Funds Ahead of Winter Heating Season
Home Office and National Police Chiefs Council Unveil New Intelligence-Led Strategy to Tackle Organised Immigration Crime Networks
First Minister John Swinney Secures Scottish Parliament Approval for Comprehensive Climate and Green Energy Infrastructure Strategy
National Health Service England and Trades Union Congress Finalize Agreement on Emergency Winter Staffing and Pay Frameworks
HM Treasury and Department for Business and Trade Announce Multi-Billion-Pound Sovereign Investment Pact to Spur Regional Advanced Manufacturing
Bank of England Governor Andrew Bailey Signals Potential for Faster Interest Rate Cuts as Domestic Inflation Pressures Ease Below Forecasts
Parliamentary Inquiry Highlights Urgent Need to Address Housing Shortage as Scottish Completions Hit Eleven-Year Low
United Kingdom and Singapore Sign Comprehensive Financial Agreement to Deepen Digital and Sustainable Market Ties
Greggs Announces Plan to Close Four Manufacturing Facilities and Cut Seven Hundred and Forty Jobs
International Monetary Fund Raises United Kingdom Economic Growth Forecast While Warning of Inflationary Pressures
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs Onto Gas to Lower Household Bills
Housebuilding Across Scotland Plummets to Eleven-Year Low Despite Government Pledges to Tackle National Housing Emergency
Greggs Announces Factory Closures Across Northern England and Scotland Affecting Seven Hundred Forty Jobs
United Kingdom and Singapore Conclude Eleventh Financial Dialogue in Singapore to Deepen Cooperation on Digital Finance and Capital Markets
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs to Gas Bills and Tap Windfall Profits to Lower Consumer Prices
British Broadcasting Corporation Announces Major Cost-Cutting Overhaul to Close Linear Broadcast Services for Television Channels BBC Three and BBC Scotland Alongside Digital Radio Station BBC Radio Four Extra
London Capital Markets Face Renewed Scrutiny After High-Profile Offerings Underperform Post-Listing
Green Party Wins Historic First Westminster Parliamentary By-Election in Gorton and Denton
Environment Secretary Emma Reynolds Unveils Sweeping Regulatory Overhaul for English Water Industry
United Kingdom Health Security Agency Confirms Thirty-Four Cases in Kent Meningitis Outbreak
Ministry of Defence Prepares Heat Pump Subsidy Cuts to Fund Urgent Military Modernization
British and European Union Officials Schedule Long-Awaited Bilateral Leaders Summit for November Twentieth
Bank of England Governor Andrew Bailey Urges Strict Fiscal Credibility to Protect British Bond Markets
United Kingdom Inflation Rises to Three Point One Percent Driven by Escalating Fuel Costs
Profit Warnings Among London-Listed Companies Reach Two-Year High Amid Global Energy Shocks
Chancellor John Healey Signals Targeted Tax Changes on Banks and London Corporate Offices Ahead of Budget
British Government Reallocates Twenty-Five Per Cent of International Climate Finance to Global Biodiversity Projects
Initial British Carbon Border Taxes Set to Undercut Parallel European Union Tariffs on Industrial Imports
Whitehall Prepares National Zero-Interest Loan Initiative to Accelerate Domestic Heat Pump and Solar Adoption
European Union Offers British Automakers Access to Hybrid Vehicle Trade Protections Subject to Strict Regulatory Alignment
British Probation Officers Threaten Widespread Industrial Action After Rejecting Five Per Cent Government Pay Offer
Microsoft Abandons Major British Artificial Intelligence Data Centre Citing Severe National Grid Power Constraints
United Kingdom Inflation Accelerates to Three Point Four Per Cent Ahead of Chancellor John Healey's Inaugural Autumn Budget
Surging Cloned Number Plates Severely Complicate Traffic Enforcement and Police Investigations
Mounting Opposition Challenges Planned Rollout of Autonomous Taxis Across London
×