Question

To ask the Minister for Women and Equalities, if she will take steps to (a) reinstate gender pay gap reporting, (b) introduce ethnicity pay gap reporting and (c) modernise equal pay laws to give women the right to know what their male counterparts earn.

The legal requirement for relevant organisations to publish gender pay gap data each year, set out in the Equality Act 2010, has not changed. The Equality and Human Rights Commission (EHRC) has, due to the continued effects of the COVID-19 pandemic, allowed employers until 5 October 2021 to report their gender pay gap information for 2020/21. Extending the deadline by six months was the correct decision.

The Commission on Race and Ethnic Disparities published its independent report in March this year, which included a recommendation on ethnicity pay gap reporting. We welcome the opportunity to consider the Commission’s findings on this matter, and to consider them in light of the work that has already taken place within government. As well as consulting on ethnicity pay gap reporting, we have met with businesses and representative organisations to understand the barriers towards reporting and what information should be published. We have also run a methodology testing exercise with a broad range of businesses to better understand the complexities outlined in the consultation.

We recognise the importance of transparency and awareness when it comes to ensuring equal pay. Under the Equality Act 2010 it is unlawful for an employer to stop employees from sharing information about what they earn, therefore protecting people who wish to discuss pay with their colleagues.