Large-scale Demand for Actions on Wage Disparity by UK Workforce: Massive Approval for Compulsory Reporting of Disability and Ethnicity Wage Gaps
In a growing movement towards race and disability equality in employment, the government's focus is shifting towards greater transparency and enforcement. This shift is driven by public sentiment and the proposed Equality (Race and Disability) Bill, which is expected to be introduced later in 2025.
Sheeraz Gulsher, co-founder of People Like Us, has emphasized the need for swift government action to create a fairer workplace environment. The need is particularly pressing for disabled workers, who are disproportionately affected by workplace disparities. According to recent data, nearly three-quarters (73%) of disabled workers have taken time off in the past year compared to 44% of non-disabled workers.
The call for action is not just about addressing the current situation but also preventing future inequalities. Nearly three-quarters (73%) of UK workers want tougher legal requirements for employers to publish pay information and take corrective action when gaps emerge. Similarly, almost eight in ten (78%) believe employers should compare the pay of employees performing work of equal value.
The issue of pay transparency is not just about fairness; it's about attracting and retaining talent. Companies may be losing out on potential hires due to a lack of salary transparency, with an average worker not applying to a job twice in the last year due to no salary range being provided. Over half (56%) of job applicants have been deterred by the absence of a salary range in a job advertisement.
To address these concerns, People Like Us and Scope are advocating for the EU Pay Transparency Directive as a potential future policy area. This directive requires employers to publish salary ranges and bans them from asking about salary history. It also gives employees the right to know the pay of others doing similar work.
The proposed Equality (Race and Disability) Bill in the UK government is expected to include compulsory ethnicity pay gap reporting, aligning with the public's desire for such measures. Over three-quarters (77%) of UK workers support this requirement.
The bill also highlights the significant economic costs associated with pay inequality. Pay inequality persists as women, ethnic minority, and disabled employees are often concentrated in lower-paid roles and excluded from leadership. This contributes to an annual earnings loss of £3.2bn due to the ethnicity pay gap in the UK, as highlighted by the Ethnicity Bill.
Structural inequalities mean that workers from Black, Asian, and mixed ethnic backgrounds are significantly more likely than their white counterparts to take time off for stress, anxiety, or financial reasons related to pay. This trend is mirrored in the higher reliance on public services by Black, Mixed Descent, and disabled workers due to their current pay level and job security.
The call for action is not just about addressing current inequalities but also about creating a healthier workplace culture. Over three-quarters (74%) of workers surveyed agree that greater transparency around pay would lead to a healthier workplace culture.
James Taylor, strategy director at disability equality charity Scope, has called for the government to move at pace to introduce pay gap reporting and support workplaces in becoming fairer and more inclusive. The tool for the Ethnicity Bill can be found at https://britainsethnicitybill.plu.org.uk/.
In conclusion, the growing focus on race and disability equality in employment is a positive step towards a fairer and more inclusive workforce. The legislative framework and public appetite are moving towards greater transparency and enforcement, providing a strong foundation for change.
- The call for action in the realm of pay transparency extends beyond just addressing current inequalities, but also involves advocating for stronger legal requirements in business, particularly the publishing of pay information and taking corrective action when pay gaps emerge, as supported by 73% of UK workers.
- Politics plays a crucial role in shaping the business environment, with the proposed Equality (Race and Disability) Bill in the UK government expected to include compulsory ethnicity pay gap reporting, a measure supported by over three-quarters (77%) of UK workers, and aligning with public sentiment.
