Context
The question stems from the Commission on Race and Ethnic Disparities report, which recommended mandatory ethnicity pay gap reporting. The Resolution Foundation reported that in 2018, the ethnicity pay gap cost black workers over £3.2 billion in lost wages.
Question
If she will make an assessment of the potential merits of mandatory ethnicity pay gap reporting. According to the Resolution Foundation, in 2018 the ethnicity pay gap cost black workers over £3.2 billion in the loss of wages. Following the pandemic, the gap is getting wider. The Women and Equalities Committee said that businesses are ready for Ministers to follow through on the Government's manifesto commitment to bring in ethnicity pay gap reporting. Can the Minister therefore explain what the hold-up is, and when the Government will do that?
Answer from Paul Scully
In “Inclusive Britain”, our response to the Commission on Race and Ethnic Disparities report, we accepted the recommendation to publish guidance for employers to support a voluntary approach to ethnicity pay reporting. Work on this is already under way. We remain committed to supporting businesses with pay reporting. There are significant technical challenges to it, and it may not be the most effective intervention for some employers in some areas, but we are working on guidance to make sure it can be as effective as possible.
Not addressed: Did not provide a specific timeline or commitment for implementing mandatory ethnicity pay gap reporting despite previous government statements and current committee recommendations.
How: There Are Significant Technical Challenges, It May Not Be The Most Effective Intervention
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