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IPPR Recommend That Ethnicity And Disability Pay Gap Reporting Be Made Compulsory

Further to our recent article, the Institute for Public Policy Research (IPPR) has recommended in a new report that ethnicity and disability pay gap reporting be made compulsory for organisations with 250 or more employees.

Ethnicity & Disability Pay Gap Reporting

In it’s new report entitled, “The Fair Pay Report: How Pay Transparency Can Help Tackle Inequalities,” the Institute for Public Policy Research (IPPR) recommends that:-

  • Ethnicity and disability pay gap reporting be made compulsory for employers with 250 or more employees
  • That all employers with 50 or more employees be required to produce a “fair pay report,” which includes their gender pay gap, the pay ratio between their chief executive officer (CEO) and their average employee, the percentage of employees working for them who earn below the living wage, and a narrative setting out their understanding of the pay gaps and what they propose to do to eliminate those gaps. Whilst ethnicity and disability pay gap reporting would be compulsory for employers with 250 or more employees under these proposals, it would not be for those with between 50-249 employees, and those employers with between 50-249 employees would only have to publish their report every 2 years instead of every year. An annual report would be compulsory for employers with 250 or more employees.
  • Having interviewed 60 employers in an earlier survey, the Institute for Public Policy Research found that 81.3% of the employers stated that they were looking into taking further action to reduce their gender pay gaps, whilst 80% also supported the continuation of gender pay gap reporting. 43% of the employers would like to see ethnicity pay gap reporting made compulsory, whilst 34% supported the idea of making disability pay gap reporting compulsory.

Comments On The Findings

Joe Dromey, the senior research fellow at The Institute for Public Policy Research concluded that: “Gender pay reporting has been a big success. Transparency has driven the gender pay gap up the agenda, and it is spurring employers to act. We should build on this success with a radical extension of pay transparency. Broader transparency on gender, ethnicity and disability would help drive employer action to tackle these burning injustices.”

Chair of the Business, Energy and Industrial Strategy Committee, Rachel Reeves MP, stated: “Gender pay reporting has been crucial in shining a light on male dominance of the highest paid sectors of the economy and the best paid jobs within each sector. Widening the reporting requirements, such as by requiring businesses to produce an action plan for closing their gender pay gap and requiring the publication of internal pay ratios, could play an important role in driving change.”

Posted in Disability Pay Gap, Equal Pay, Ethnicity Pay Gap Reporting, gender pay gap, Gender Pay Gap Reporting, Gender Pay Reporting, General Employment Law and tagged , , , , .