Reforms planned to strengthen equal pay rules

A new consultation has launched to shape reforms to equal pay rules, which aim to strengthen protections for workers against discriminatory pay practices and speed up court and tribunal proceedings.

Government is launching work alongside pay discrimination-related findings from a call for evidence on equality law, alongside wider research that demonstrates the complexity and cost of existing laws.

To shape future reforms, stakeholders (including businesses, public bodies, trade unions, and civil society organisations) are invited to share their views on how to best fix the equal pay system and eliminate pay discrimination.

The consultation will invite insights on the government’s approach to make the right to equal pay effective for ethnic minority and disabled people, establish an equal pay regulation and enforcement unit with the involvement of trade unions and ensure that outsourcing of services can no longer be used by employers to avoid paying equal pay. Additionally, government has also committed to delivering mandatory ethnicity and disability pay gap reporting.

Reform of the system also aims to help businesses find the right people for roles, boost productivity, and incentivise employers to act in good faith.

The consultation will be open for 15 weeks, and focus on two phases on work: firstly fixing the foundations of the equal pay system including increasing transparency of practices, reforming the process for bringing claims, and establishment of a new  Equal Pay Regulation and Enforcement Unit. A second phase will look to close gaps in law by strengthening protections against pay discrimination on the basis of race, disability, and sex, and requiring outsourcing arrangements uphold pay equality.

Organisations representing businesses and groups most affected by pay discrimination have welcomed the reforms.

Sandra Kerr CBE, Race Equality Director at Business in the Community, said:

“Business in the Community welcomes this consultation as a constructive opportunity to reset the balance on equal pay. 

“Fairness, transparency, and accountability are more than just HR buzzwords; they are the bedrock of what helps businesses attract and retain talent by building inclusive workplaces.

“We are ready to get involved with this consultation and champion an approach that delivers for businesses of any size.”

Penny East, Chief Executive at Fawcett Society said:

“Ending pay discrimination and strengthening pay transparency measures, alongside fully enforced pay gap reporting, is an essential part of women’s economic empowerment.

“This consultation is a huge opportunity to gather views that will help strengthen pay transparency and end pay discrimination. When women are paid equally, treated fairly, and are fully aware of salary information, it benefits employees, workplaces and our wider economy.”