In 2016, the UK government asked Baroness McGregor-Smith to examine the barriers faced by ethnic minorities in the workplace and to consider what could be done to address them. Published on 11 October 2018, the One Year On Review of her 2017 report shows that limited progress has been made across her recommendations. The Review reveals that just 11% of employees reported that their organisations collect data on ethnicity pay. Also, those in small organisations are much less likely (8%) to report that their organisation collects data on ethnicity pay.

In response to these findings, the government is consulting on a mandatory approach to ethnicity pay reporting. The consultation invites views on a number of questions, including what information should be published to allow for meaningful and proportionate action to be taken without adding undue costs to business. Responses will inform future UK government policy on ethnicity pay reporting.

The government is seeking views on:

  • Types of ethnicity pay information that should be reported
  • Supporting or contextual data that should accompany the information
  • Whether employers should be required to publish action plans for addressing identified disparities
  • The challenges faced by employers in collecting, analysing and reporting ethnicity pay information
  • Effective approaches for employers to improve employee self-reporting or declaration rates
  • How self-reporting or non-disclosure rates should be reflected in the information reported by employers
  • Whether a standardised approach to classifications of ethnicity should be used
  • Steps that should be taken to preserve the confidentiality of individuals
  • The size of employer (or employee threshold) that should be within scope for mandatory ethnicity pay reporting

The consultation closes on 11 January 2019.