7. RECOMMENDATIONS FOR GOVERNMENT & POLICYMAKERS While employers play a critical role in tackling the ethnicity pay gap, meaningful and sustainable change requires legislative backing, regulatory consistency, and national leadership. Government policy can set the tone, create incentives, and hold institutions accountable in ways that voluntary frameworks cannot. The following recommendations are aimed at driving systemic reform at scale. 1. Mandate Ethnicity Pay Gap Reporting Voluntary reporting has proven insufficient. Without legal requirements, most employers choose not to publish their ethnicity pay data, limiting transparency and stalling progress. Recommended actions: Enact legislation requiring all organisations above a defined size threshold (e.g., 250 employees) to report their ethnicity pay gaps annually. Introduce clear definitions, reporting standards, and enforcement mechanisms. Align reporting with existing gender pay gap obligations to ease adoption.
Learning from the Gender Pay Gap model: mandatory reporting drives compliance, but meaningful change requires linking reporting to action and accountability.
2. Provide Sector-Specific Reporting Guidance A “one-size-fits-all” approach risks disengagement or misuse of data, especially in sectors with small workforces or nuanced workforce demographics. Recommended actions: Develop tailored guidance for sectors such as health, education, care, finance, and creative industries. Allow for flexible ethnicity classification systems that reflect workforce realities. Provide templates and support tools to aid in compliance.
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