At the start of 2021, we wait with interest to receive the Government’s response to the consultation on proposals for a mandatory approach to ethnicity pay gap reporting, which is along similar lines to the existing gender pay gap reporting and which would potentially require employers to publish their workforce data, broken down by ethnicity and pay band.
The consultation sought views on the most appropriate way to report the data, either by having a headline figure or several figures depending on ethnic groups, as well as considering the size of employer who should be asked to take part and also how to deal with the numerous challenges of collecting and analysing the data itself.
It is understood that there were responses to the consultation from both the private and public sector, and that 73% of those who took part in the consultation support compulsory ethnicity pay gap reporting for organisations with more than 250 staff.
The foreword to the consultation explained that it believed transparency to be a vital first step towards harnessing the power of the diverse workforce and that these powers of transparency have already been seen with the 2017 introduction of gender pay gap reporting, starting to highlight the gap so that it can start to be addressed over time. Some public sector organisations (such as the Civil Service) already publish ethnicity pay data and have committed to publish departmental breakdowns moving forward.
Since the consultation concluded, there have also been petitions debated in parliament calling for an introduction of mandatory ethnic pay gap reporting.
The consultation, entitled “Ethnicity Pay Reporting” actually closed for consultation over 2 years ago and the government had been expected to respond by the end of last year so the response it is likely to be imminent. Taking into account a PWC report from 2019 which disclosed that 95% of companies have not assessed their ethnicity pay gap at all, there is probably a lot of work to do.
Meanwhile, unsurprisingly given the BLM events of 2020, change is also afoot more generally and in October 2020, the Commission on Race and Ethnic Disparities has asked for evidence regarding disparities and inequality in the UK focussing on 4 areas of crime and policing, health, education, and employment and enterprise.
Those questioned have been asked as to what they consider the main causes of racial and ethnic disparities and, in relation to employment, how to improve, representation, retention and progression opportunities for people of different ethnic backgrounds in public sector workforces. The deadline for responding was at the end of last year so again, we will be keen to learn the results and suggestions for improvement.
