Mandatory disability and ethnicity pay gap reporting on the horizon

Pay transparency continues to dominate the conversation. And with the UK government under increasing pressure to address wider workplace inequalities, both disability and ethnicity pay gap reporting are firmly in the spotlight.

While currently voluntary, momentum is building for mandatory reporting. The Equality (Race and Disability) Bill proposes to extend reporting duties to cover both disability and ethnicity pay disparities. If passed, larger employers could soon be required to collect, analyse, and publish data on how different groups are paid and why.

Beyond compliance, this is about fairness and futureproofing. Employees and jobseekers are increasingly looking for transparency, and businesses that embrace it are more likely to attract and retain diverse talent. Addressing pay gaps also improves reputation and reduces the risk of equal pay claims.

There’s no confirmed timeline yet, but employers can take proactive steps now:

• Review your existing diversity data and reporting processes.
• Encourage disclosure through clear, inclusive communications.
• Start analysing pay data by ethnicity and disability where possible.
• Build a narrative and action plan to address any disparities.

We’ll keep an eye on developments as they happen in Parliament, but don’t wait until it’s mandatory to get started. As with gender pay gap reporting, early preparation is key.

Watch our webinar on disability and ethnicity pay gap reporting to learn how you can get ahead of the changes.

WATCH NOW