27.03.2026

Mandatory ethnicity and disability pay gap reporting for large employers to be introduced

Minority ethnic groups and disabled people are to benefit as the government commits to introducing mandatory ethnicity and disability pay‑gap reporting for large employers.

Firms with 250 or more employees will be required to publish six key pay‑gap metrics and new workforce composition data.

The government’s response to the consultation on mandatory ethnicity and disability pay gap reporting, shows widespread support for introducing this legislation. Eighty-seven per cent of respondents agreed large employers should report their ethnicity and disability pay gaps to increase transparency and help tackle barriers in the workplace.

The consultation response also features indicative clauses for the new legislation and how it will work in practice. This has been drafted in collaboration with businesses who are already reporting on their ethnicity and disability pay differences on a voluntary basis. Legislation will seek to build on the current gender pay gap reporting to simplify the process and make it easy for employers to record their data.

Seema Malhotra MP, Minister for Equalities, said: "No-one deserves to be held back at work because of their ethnicity or disability. Everyone should be able to expect fair pay and progression opportunities for their hard work.

"By introducing ethnicity and disability pay gap reporting, this Government is committed to ensuring transparency and tackling unfairness where it exists, promoting inclusion in our workplaces and our economy.

"The government wants to ensure that whoever you are, wherever you come from, Britain is a country that will respect your contribution and give you a fair chance to get on in life."

Rt Hon Sir Stephen Timms MP, Minister of State for Social Security and Disability, said: "Disabled people deserve the same chance as everyone else to be rewarded fairly at work, but the fact is that pay gaps exist.

"Pay gap reporting will give organisations the data they need to reduce these gaps and improve fairness and inclusivity in the workplace.

"This is part of this government’s mission to break down barriers to opportunity to deliver transparency, clarity and fair pay for all."

Baroness Lawrence of Clarendon OBE, Chair of the Race Equality Engagement Group, said: "Ethnicity and disability pay gap figures can help root out inequalities in workplaces. The transparency they provide supports businesses in ensuring everyone has a fair chance to contribute to their full potential.

"That’s why, both personally and in my role as Chair of the Race Equality Engagement Group, I am pleased to see the significant support for ethnicity and disability pay gap reporting and welcome the government’s commitment to legislate as soon as possible."

This comes as part of the wider government commitment to break down barriers to work, including a £3.5 billion package of employment support by the end of the decade to help more sick or disabled people into work.

Jackie Henry, Managing Partner People & Purpose at Deloitte, said: "Deloitte first published its ethnicity pay gap in 2017. Being open about our data has helped us take more focused action, such as our Future Leaders Programme, which provides tailored support and sponsorship of women and ethnic minority colleagues.

"We built on this in 2024 by publishing our pay and bonus gaps for disability and socio-economic background for the first time and in 2025 by publishing our pay and bonus gaps for sexual orientation. This has given us a starting point to measure progress, keep us accountable, and help us improve our inclusion plans. There is no quick solution to improving diversity and inclusion in business. Meaningful and sustained change will take time and requires ongoing transparency."

Phillippa O’Connor, Chief People Officer at PwC, said: "As an early advocate of inclusion in the workplace and transparent pay reporting, PwC has seen first‑hand how greater transparency sharpens focus on where progress is being made and where more work is needed.

"Publishing and analysing our data has strengthened our ability to take a robust, evidence‑led approach to inclusion, grounded in a clear understanding of the lived experience of our people.

"Transparency is not an end in itself, but a starting point - creating accountability, encouraging open and ongoing conversations, and enabling organisations to turn insight into action that genuinely moves the dial on fairness, progression and opportunity."

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