Minister for Equalities (): The government has today
published a consultation on equal pay and pay discrimination.
In our manifesto and Plan to Make Work Pay, we committed to
strengthening equal pay provisions and eliminating pay
discrimination. This is an important milestone in the
government's wider plan to break down the barriers to opportunity
and make work pay for women across the country, address racial
inequalities, and champion the rights of disabled people.
The UK's prosperity and long-term economic growth depend on a
national renewal that is grounded in the principles of equality
and opportunity. This includes reinforcing our commitment to
upholding the fundamental right to equal pay for equal work. This
government's ambition is to remove barriers to opportunity,
provide greater certainty for employers, and reduce the burden on
business and the justice system through less protracted
litigation.
Concerns have been widely expressed by employers and employees
that the existing law on pay equality has become excessively
complex, costly, and protracted. With tens of thousands of claims
stuck in the system and cases taking a decade or more to resolve,
workers are trapped in endless litigation and employers face
intractable uncertainty. No one benefits from this.
We know what the problems are: a system that fails to provide the
data and tools needed to reliably and efficiently identify
discriminatory pay practices; that places too much of the burden
for enforcing the law on individuals; that incentivises arguments
over minor details of a dispute, multiplying time, stress and
expense; and that does not do enough to protect women or others
who need it, such as ethnic minority and disabled employees and
outsourced workers.
It is therefore crucial that we address the issues raised by
workers, businesses, and the justice system, ensuring the pay
discrimination framework works effectively for everyone.
This consultation seeks input from stakeholders regarding policy
proposals designed to deliver the following commitments:
- 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
- ensure that outsourcing of services can no longer be used by
employers to avoid paying equal pay
In addition to these commitments, the consultation seeks input on
the proposed introduction of allied pay transparency measures
where the evidence shows that these are proportionate and
effective in supporting a preventative approach to pay equality.
In April 2025, the Office for Equality and Opportunity launched a
call for evidence on equality law which invited feedback on areas
of existing equality legislation and possible equality law
reform. This included questions on the equal pay commitments
outlined above, as well as possible related pay transparency
measures. The responses received, as well as
government-commissioned research on the socio-legal and lived
experience impacts of the equal pay scheme, demonstrate a need
for serious reform of the current system before broadening
protections to address inconsistencies in the law.
That is why we are consulting on a phased and future-facing
approach to reform which commits to fixing the system first,
before broadening protections to ethnic minority, disabled and
outsourced workers. In doing so, we would seek to protect
employers from unforeseen liabilities for historic practices. We
want to get this right, working in partnership with businesses,
civil society and trade unions to make sure that our reforms
account for all parties' needs and circumstances. We also invite
views from stakeholders on whether they think there are
alternative ways to achieve our objectives. The launch of this
consultation will inform how we can change the law for the
better.
Specifically, the consultation includes proposed measures
designed to proactively prevent pay discrimination, ensure
enforcement agencies are empowered to drive good practice, and
simplify the resolution of disputes when they arise. It also
includes proposed measures to address gaps and inconsistencies
affecting ethnic minority and disabled employees and outsourced
workers. These measures are intentionally proportionate,
prioritising targeted action that minimises administrative
burdens and simplifies compliance.
As a result, these measures will support the government's
ambition to remove barriers to opportunity, make work pay,
provide greater certainty for employers, and reduce the burden on
business and the justice system through less protracted
litigation.
The consultation will be open for 15 weeks. In connection with
the above, my department has made the following documents
available on GOV.UK(opens in
a new tab):
- An independent analysis of the responses to the pay
discrimination sections of the call for evidence on Equality Law,
undertaken by an external contractor.
- Independent research commissioned by OEO.
I will also deposit a copy of the consultation in the Libraries
of both Houses.
