Asked by: Anneliese Dodds (Labour (Co-op) - Oxford East)
Question
To ask the Minister for Women and Equalities, if she will make an assessment of the potential implications for his policies of the recommendation on ethnicity pay gap reporting in paragraph 35 of the guide entitled Considering Social Factors in Pension Scheme Investments, published by Taskforce on Social Factors in October 2023.
Answered by Maria Caulfield - Parliamentary Under Secretary of State (Department for Business and Trade) (Minister for Women)
The Government published guidance in April 2023 which sets out how employers can measure, report on, and address any unfair ethnicity pay gaps within their workforce. This was an action from our ambitious Inclusive Britain strategy, published in March 2022.
We have no plans to introduce mandatory ethnicity pay reporting. Instead, we want to encourage and support those employers who want to use ethnicity pay reporting to improve transparency and build trust among their employees.
Asked by: Lord Shinkwin (Conservative - Life peer)
Question
To ask His Majesty's Government, further to the remarks by Baroness Stedman-Scott on 21 March 2022 where she stated that they reserve the right to introduce legislation for mandatory ethnicity pay gap reporting "at a future point, if and when the reporting tools are sufficiently developed, effective in driving positive change and accessible to more businesses" (HL Deb col 722), whether they still remain open to doing so.
Answered by Lord Gascoigne - Lord in Waiting (HM Household) (Whip)
The Government published guidance in April which sets out how employers can measure, report on, and address any unfair ethnicity pay gaps within their workforce. This was an action from our ambitious Inclusive Britain strategy, published in March 2022.
We have no plans to introduce mandatory ethnicity pay reporting. Instead, we want to encourage and support employers who want to use ethnicity pay reporting to improve transparency and build trust among their employees. We are engaging with employers and representative bodies to promote the new guidance. We will also seek case studies from those that are already reporting on their ethnicity pay data, so that others can benefit from their experience.
Asked by: Olivia Blake (Labour - Sheffield, Hallam)
Question
To ask the Minister for Women and Equalities, what recent steps the Government has taken to close the (a) gender, (b) ethnicity and (c) disability pay gaps.
Answered by Maria Caulfield - Parliamentary Under Secretary of State (Department for Business and Trade) (Minister for Women)
Over the last decade the gender pay gap has fallen by approximately a quarter and mandatory gender pay gap reporting has helped motivate employers to improve workplace gender equality. To accelerate progress we have supported legislation to: enhance flexible working, extend redundancy protection for those on maternity leave, and introduce carer’s leave.
On ethnicity pay gaps; in April this year we published guidance for employers on how to voluntarily calculate and publish their ethnicity pay gaps. This will allow businesses to report accurately and in a consistent manner, and to address any unfair ethnicity pay gaps within their workforce.
With regard to the disability pay gap, we recognise that one of the greatest challenges is opening up opportunity in the workplace. In March 2023, the Department for Work and Pensions (DWP) published Transforming Support: The Health and Disability White Paper. This sets out how DWP will: support more disabled people to start, stay and succeed in work.
Asked by: Charlotte Nichols (Labour - Warrington North)
Question
To ask the Minister for Women and Equalities, what steps the Government taking to help close the (a) gender, (b) ethnicity and (c) disability pay gap.
Answered by Maria Caulfield - Parliamentary Under Secretary of State (Department for Business and Trade) (Minister for Women)
Over the last decade the gender pay gap has fallen by approximately a quarter and mandatory gender pay gap reporting has helped motivate employers to improve workplace gender equality. To accelerate progress we have supported legislation to: enhance flexible working, extend redundancy protection for those on maternity leave, and introduce carer’s leave.
On ethnicity pay gaps; in April this year we published guidance for employers on how to voluntarily calculate and publish their ethnicity pay gaps. This will allow businesses to report accurately and in a consistent manner, and to address any unfair ethnicity pay gaps within their workforce.
With regard to the disability pay gap, we recognise that one of the greatest challenges is opening up opportunity in the workplace. In March 2023, the Department for Work and Pensions (DWP) published Transforming Support: The Health and Disability White Paper. This sets out how DWP will: support more disabled people to start, stay and succeed in work.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, if he will make it his policy to introduce mandatory ethnicity pay gap reporting.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
This Government remains committed to tackling all areas of disparities in this country, including in employment.
Ethnicity pay gap reporting is just one type of tool to assist employers in doing this and it may not always be the most appropriate mechanism for some types of organisations. Therefore, as set out in the “Inclusive Britain” report, which was published in March 2022, the Government will not be legislating to make ethnicity pay reporting mandatory at this stage. Government published guidance in April 2023 to support employers who wish to report voluntarily.
Asked by: Stephen Timms (Labour - East Ham)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what plans he has to introduce obligatory pay gap reporting with respect to ethnic minority employees.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Government responded to the Commission on Race and Ethnic Disparities’ report and recommendations with the “Inclusive Britain” report which was published in March 2022. In this report, Government set out that ethnicity pay reporting will be voluntary and we will not be legislating for mandatory ethnicity pay reporting at this stage.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what plans they have to introduce mandatory ethnicity pay gap reporting.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
We are considering the findings of the Commission on Race and Ethnic Disparities independent report, which included recommendations on ethnicity pay reporting, alongside feedback to our consultation on this issue and the recent Women and Equalities Select Committee Report. We will set out our approach in due course.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what assessment they have made of the survey research by the Trade Unions Congress, published on 19 March, which found that one in three black and minority ethnic workers say they have been unfairly turned down for a job; and what plans they have to introduce mandatory ethnicity pay gap reporting.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government is aware of the TUC research which found that a third (33%) of ethnic minority workers say they have been unfairly turned down for a job compared to one in 5 (19%) of white workers. The Government is clear that no one should be discriminated against because of their ethnicity and the Equality Act 2010 makes such discrimination unlawful.
The Government is committed to building a fairer Britain and ensuring that equality and opportunity is available for all. That is why my Rt. Hon. Friend the Prime Minister established the independent Commission on Race and Ethnic Disparities which published its independent report on March 31st.
The report includes a specific recommendation in relation to ethnicity pay reporting. We welcome the opportunity to consider the Commission’s findings in relation to this issue,
and are looking at them in light of the work that has already taken place within government, including the consultation on ethnicity pay reporting. We will be publishing our response to the Commission’s report later this summer.
Asked by: Baroness McGregor-Smith (Non-affiliated - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government whether, and if so, when, they intend to introduce mandatory ethnicity pay gap reporting.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government ran a consultation from October 2018 to January 2019 on Ethnicity Pay Reporting and, we have met with businesses and representative organisations to understand the barriers towards reporting and what information could be published to allow for meaningful action to be taken. We have also run voluntary methodology testing with a broad range of businesses to better understand the complexities outlined in the consultation using real payroll data.
On the 14 June, my Rt. Hon. Friend the Prime Minister announced a new Commission on race and ethnic disparities which will examine continuing racial and ethnic inequalities in Britain and ways Government can address these and improve lives. Further information will be published in due course.