COMPLIANCE
Charles Cotton, Senior Policy and Human Resources (HR) Practice Adviser – Pay and Reward, CIPD, discusses how pay and reward professionals can prepare for ethnicity and disability pay gap reporting DRIVING FAIR PAY
I n today’s evolving workplace, pay deductions. Working with people and reward professionals, they’re becoming central figures in shaping fair and inclusive employee recruitment, management and reward strategies. With the UK Government’s consultation 1 on mandatory ethnicity and disability pay gap reporting (EDPR) now concluded, the CIPD has responded 2 with a clear and strategic vision, placing pay and reward professionals at the heart of meaningful change. The CIPP’s policy and research team also responded 3 . Why EDPR matters EDPR is more than a compliance exercise. It’s a powerful tool to uncover and address professionals are increasingly expected to do more than process salaries and inequalities in the workplace. The CIPD believes that EDPR, alongside the publication of equality action plans, has the potential to significantly reduce disparities in pay and opportunity. For people professionals, this represents a chance to ensure decisions about pay are fair, evidence- based and aligned with both business needs and workforce expectations. Unlike gender pay gap reporting, which is already a legal requirement for large British employers, EDPR introduces new complexities. Disclosure rates for ethnicity and disability are often inconsistent, HR data systems may lack the necessary capabilities and cultural sensitivities around identity must be handled with care. These challenges mean that EDPR must be implemented thoughtfully and gradually. The CIPD’s recommendations: a phased approach To ensure EDPR is effective and sustainable, the CIPD recommends a staggered rollout with three phases: 1. Apply the reporting duty to organisations with 1,000 or more employees, starting in the 2027/28 reporting year. 2. Extend the requirement to employers with 500–999 employees.
| Professional in Payroll, Pensions and Reward | December 2025 - January 2026 | Issue 116 28
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