EXECUTIVE SUMMARY
Key Findings The ethnicity pay gap in the UK remains a persistent and visible indicator of deeper systemic inequities across all sectors. Despite increased awareness and isolated progress, ethnic minority employees continue to be overrepresented in lower- paid roles and underrepresented in leadership and decision-making positions. Many organisations report improvements in their pay gap figures, but these headline statistics often mask ongoing disparities in career progression, representation, and structural inclusion. A critical barrier to meaningful progress on the ethnicity pay gap is the lack of contextual understanding within organisations about the root causes of inequality. While national-level data can provide broad insights, it often masks important local dynamics, workplace cultures, and systemic issues. One such issue is the persistence of societal stereotypes and occupational role grouping, where certain professions are still perceived as more suitable for men or for women. This reinforces the concentration of specific groups, particularly women and ethnic minorities, in lower-paid or lower-status roles, restricting mobility and contributing to entrenched pay disparities. To address these challenges, organisations must go beyond surface-level data and invest in understanding the unique barriers within their own structures, practices, and cultures, enabling more targeted and sustainable action.
Another barrier to meaningful change is the lack of accurate, granular, and transparent data. Geography, such as regional pay disparities and the "London effect," further complicates analysis. These challenges highlight the urgent need for organisations to collect their own high-quality ethnicity pay data, benchmark against best practices, and confront systemic biases within their own structures. Core Recommendations To close the ethnicity pay gap, this report offers a set of practical and strategic recommendations, including: Mandatory, standardised ethnicity pay gap reporting for all employers. Investment in robust internal data collection and disaggregated analysis. Clear leadership accountability for closing pay gaps, supported by transparent governance. Targeted development and progression initiatives for underrepresented ethnic groups. Co-designed action plans with employees, focusing on long-term, systemic change. Integration of intersectional analysis to address overlapping barriers related to race, gender, disability, class, and socio- economic background.
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