Mandatory pay gap reporting: Progress, but not enough
The UK Government is consulting on plans to extend mandatory pay gap reporting to include ethnicity and disability, alongside the existing gender requirements. At Ancoram, we welcome this direction, but we also see critical gaps in the proposals.
Ethnicity and disability pay gaps remain deeply entrenched in the UK workforce. Transparent reporting can help expose these inequities, but data alone is not enough. Employers need to be supported, and required, to act on what the numbers reveal. That means meaningful action plans, cultural change, and proper integration with ESG governance.
We are particularly concerned by the continued use of the tax year (6 April to 5 April) as the basis for reporting. This approach is outdated, administratively burdensome, and disconnected from how most organisations plan, budget, and report. Aligning reporting with employers’ financial years would reduce friction and improve data quality.
We also question why other protected characteristics, such as sexual orientation and gender identity, have been excluded from scope. Pay equity should be approached holistically, not selectively.
Our full consultation response sets out constructive recommendations grounded in our practical work with clients and shaped by lived experience. We urge policymakers to view this not as a compliance exercise, but as a strategic opportunity to build fairer, more resilient organisations.