Government Consults on Mandatory Ethnicity & Disability Pay Gap Reporting

By Katie Harris

Associate

On 18 March 2025, the Office for Equality and Opportunity, the Race Equality Unit and the Disability Unit launched a consultation on how to introduce mandatory ethnicity and disability pay gap reporting for large employers (i.e. those with 250 or more employees).

The Government proposes to:

  • Require employers to use the same processes and systems that are already in place for gender pay gap reporting;
  • Make it mandatory for employers to report on the overall breakdown of their workforce by ethnicity and disability and the percentage of employees who did not disclose their personal data on their ethnicity and disability; and
  • Introduce additional reporting requirements on ethnicity and disability for public bodies, such as in relation to recruitment, retention and progression.

The consultation document also seeks views on whether employers should be required to produce action plans for ethnicity and disability pay gap reporting.

If you have any queries or would like to understand more about the proposals, please contact our team on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.