Commons Sense

House of Commons · Westminster Hall

Workplace Pay Gaps

07 January 2025 · 13 other contributors · 12,216 words

Opened by Dawn Butler Lab Brent East

Responding minister: Seema Malhotra

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Dawn Butler raised concerns about workplace pay gaps in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about multiple pay gaps including age, gender, ethnicity, and disability, with progress deemed too slow.
  • Specific asks include mandatory equality action plans and a right to know colleagues' salaries to address pay discrepancies.
  • Minister announced plans to introduce the Equality (Race and Disability) Bill and mandatory reporting for employers with 250 or more employees.

Key requests to Government

The Government needs to ensure that companies not only report but also implement equality action plans to close pay gaps. There should be a right to know about colleagues' salaries to tackle unexplained pay differences.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Dawn Butler Lab Brent East

There are multiple pay gaps including age, size, accent, gender, ethnicity and disability. The current rate of progress for closing these gaps is too slow; it will take another 40 years to fix the gender and ethnicity pay gap, even longer for the disability pay gap.

Other contributors (13)
  • Ben Gummer Con Ipswich

    Ben Gummer asks when the landmark race equality Act will be brought before the House and what measures are planned to ensure accurate reporting of ethnic pay gaps.

  • Ben Obaze Con Worsley and Eccles South

    Ben Obaze clarifies that he does not have detailed knowledge of past Labour policy but inquires about the 2024 pay gap figures for gender, ethnicity, and disability within the party.

  • Ben Obese-Jecty Con Huntingdon

    Asked the Minister whether additional legislation would close the remaining gender pay gap more quickly or have no impact on the current trajectory. He also inquired about plans to address differing pay gaps across industries and within specific age demographics.

  • Brian Leishman Lab Alloa and Grangemouth

    Women in Scotland can expect to earn £3,000 a year less than men. Local authority workers need fair wages that reflect their value.

  • Deirdre Costigan Lab Ealing Southall

    Highlights that disabled workers are paid an average of over £2 an hour less than non-disabled workers. Women experience double discrimination, facing both the gender pay gap and disability pay gap, which has barely moved under the previous Government.

  • Gregory Campbell DUP East Londonderry

    Agreed that there must be no distinction in pay based on gender or any other differential, advocating for pay equality right across the spectrum.

  • Iqbal Mohamed Ind Dewsbury and Batley

    Welcomes the Employment Rights Bill but calls for further enforcement measures to ensure employers meet gender pay gap reporting requirements. Questions why the bill confines itself to businesses with 250 employees or more, instead of extending it to those with 50 employees.

  • Jim Shannon DUP Strangford

    Discussed the pay gap issue in Northern Ireland, highlighting a significant increase in starting salary for teachers to £30,000. Emphasized the need for wage equality and legislative action from the government where companies are reluctant. Asked the Minister about discussing disability matters with Northern Ireland's equivalent minister.

  • Kim Johnson Lab Liverpool Riverside

    Asked the Government to place more emphasis on ethnicity gap issues in the Employment Rights Bill, which is currently in Committee.

  • Stella Creasy Lab Walthamstow

    Stella Creasy questions the Labour party’s move during the pandemic to abolish gender pay gap reporting and asks for an apology from her own party. Welcomed the commitment to review parental leave but argued that shared parental leave has set back gender equality.

  • Seema Malhotra Lab Feltham and Heston

    Emphasised the importance of legislation protecting pregnant women, mothers on maternity leave, and those returning to work. Mentioned plans for mandatory ethnicity and disability pay gap reporting.

  • Stella Creasy Lab/Co-op Walthamstow

    Addressed the myth that equal pay is not about cold, hard economics. Data shows two-thirds of income difference cannot be explained by factors other than discrimination.

  • Steve Witherden Lab Montgomeryshire and Glyndŵr

    Research reveals mothers in the UK earn, on average, 31% less than fathers—a gap worse than before. The motherhood pay penalty leads to career breaks or reduced hours for women, resulting in limited work experience and stunted career progression. The Institute for Fiscal Studies found that seven years post childbirth, women earn less than half of what men earn.

Government Response

Seema Malhotra

The Minister for Equalities

Acknowledged the long-standing advocacy and campaigning on equality issues, noted the importance of legislation such as the Equality Act, and announced plans to introduce the Equality (Race and Disability) Bill. Emphasised the need to strengthen protections against discrimination by introducing mandatory ethnicity and disability pay gap reporting for employers with 250 or more employees. Commited to reviewing parental leave alongside family-friendly rights improvements. Announced the Employment Rights Bill to make paternity and parental leave available from day one of employment. Highlighted plans to introduce mandatory ethnicity and disability pay gap reporting, which will provide transparency and help businesses address barriers to progression for ethnic minority and disabled workers.

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