Axis HR’s article in The HR Director magazine -Government presses ahead with mandatory ethnicity and disability pay gap reporting
The UK government has confirmed it will introduce legislation requiring large employers to report their ethnicity and disability pay gaps, following a public consultation that drew overwhelming support. The government’s official response, published on 25 March 2026, sets out a detailed framework designed to increase workplace transparency and tackle persistent pay disparities.
The consultation, which ran from March to June 2025, received 857 responses, with 87% of respondents agreeing that large employers (with 250 or more employees) should be required to report both their ethnicity and disability pay gaps. High levels of agreement—exceeding 70%—were recorded across all key proposals, including workforce composition reporting, declaration rates, and mandatory action plans.
To minimise burdens on business, the new requirements will closely mirror existing gender pay gap reporting rules. Employers will use the same six calculations (mean and median hourly and bonus pay gaps, pay quartiles, and bonus receipt percentages), the same snapshot dates, and the same online reporting service. Enforcement will also align with the Equality and Human Rights Commission’s current approach.
For ethnicity, firms must collect data using the Government Statistical Service’s harmonised standards and report a binary comparison (White vs. all other ethnic groups combined) as a minimum, aggregating into five broader groups where possible. For disability, a binary comparison using the Equality Act 2010 definition will be required. A minimum employee threshold (still under review) will protect anonymity. Critically, employers must publish action plans to address any identified gaps.
Primary legislation and detailed regulations are now in development, alongside practical guidance for employers on improving declaration rates and making calculations. For employers, the message is clear: transparency on pay gaps by ethnicity and disability will soon be a legal requirement, not a choice.
