The majority of UK workers want the Government to introduce mandatory reporting on disability and ethnicity pay gaps, with research showing strong public support for greater transparency. The findings come as the Government reviews responses to the recent Equality (Race and Disability) Bill consultation.
A new survey carried out by disability charity Scope and by not-for-profit People Like Us, which supports professionals from minority ethnic backgrounds, found that 77 percent of respondents support compulsory disability pay gap disclosure, while 70 percent back mandatory reporting on ethnicity-based pay disparities.
In addition to reporting requirements, 73 percent of respondents want stronger legal obligations on employers to both disclose pay data and take action where disparities exist. A further 78 percent believe employers should be required to compare the pay of staff performing work of equal value, while 92 percent expect firms to address any discrepancies or provide a clear justification.
Rising financial strain linked to widening pay gaps
Pay disparities are not only affecting earnings but are also increasing pressure on public services. Among workers with a disability, 75 percent reported needing greater reliance on Government services in the past year due to their current pay and job security. This figure was similarly high for workers of Black (76%) and Mixed Descent (75%) backgrounds, compared to 52 percent of White workers.
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Almost half (49%) of respondents said they had taken time off in the past 12 months due to stress or anxiety connected to pay, finances or the cost of living. However, this burden is not equally distributed. Workers from Asian (67%), Black (64%) and Mixed (63%) backgrounds were more likely than White colleagues (44%) to take time off for these reasons. Among disabled workers, the number rose to 73 percent, compared to 44 percent of non-disabled employees.
The data points to an increased risk of exclusion and financial distress for already disadvantaged groups, with poor pay transparency and limited career progression adding to long-term instability.
Transparency as key to improving workplace culture
The research indicates that a lack of pay transparency is widely perceived to enable workplace inequality. More than two-thirds (69%) of workers believe that secrecy around pay is contributing to pay gaps in their own workplace. This belief is even more common among disabled respondents (79%) and those of Black (80%), Asian (79%) and Mixed Descent (72%) heritage.
Nearly three-quarters (74%) of all respondents said that clearer pay transparency would help foster a healthier workplace culture. In addition, 77 percent agreed that employers should be required to publish the salary range in job adverts. Many also said they had decided against applying for roles in the past year due to the absence of clear salary information.
People Like Us and Scope are advocating for adoption of similar measures to those included in the EU Pay Transparency Directive. This includes mandatory salary range publication, bans on asking about salary history and the right to access pay information for others in similar roles.
The cost of inequality
“The Government has a duty to move quickly with this bill which will help businesses build trust and create a fairer workplace environment for all,” said Sheeraz Gulsher, co-founder of People Like Us. “Ethnic minorities and disabled workers are being short-changed, not just in pay but in opportunity – and it’s costing this country billions each year. Reporting is not a silver bullet, but it’s the bare minimum. Now is the time for the Government to act.”
To support progress on the Equality (Race and Disability) Bill, campaigners have launched Britain’s Ethnicity Bill, drawing attention to the £3.2 billion in lost earnings attributed to the ethnicity pay gap. Three in four respondents (75%) said employers should do more to remove barriers to recruitment and progression. Pay inequality often persists when disadvantaged groups are concentrated in lower-paid roles and excluded from leadership positions. Without proactive change, campaigners argue, these gaps are unlikely to close.
James Taylor, strategy director at Scope, said, “These findings send a strong message that disabled workers want and deserve transparency on pay and the rest of the country agrees with them. For too long, disabled people have been locked out of jobs or on lower wages.
“If the Government is committed to tackling the Disability Employment Gap, it should move at pace to introduce pay gap reporting, support workplaces across the UK become fairer and more inclusive, and help lift disabled workers out of low pay and in-work poverty.”
