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Almost half of employers remain silent on ethnicity pay gap reporting

A survey reveals that 46.1% of employers do not publish ethnicity pay gap data, highlighting uneven transparency as the UK prepares to make reporting mandatory for large organisations amid ongoing diversity efforts.

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Almost half of employers still do not publish ethnicity pay gap data, according to a poll of Employee Benefits readers that suggests transparency remains uneven even as reporting looks set to become mandatory. The survey found that 46.1% of respondents said they do not disclose the figures, while 38.5% said they do publish them and 15.4% were unsure whether they do so.

 

Mandatory reporting moves closer

 

The findings come as the UK government prepares to introduce compulsory ethnicity and disability pay gap reporting for large employers. In March 2026, ministers said organisations with 250 or more staff would have to publish six pay-gap measures alongside workforce composition data, with the policy intended to build on the existing gender pay gap regime. The government said 87% of consultation respondents backed the move, and the Regulatory Policy Committee has since given its impact assessment a green rating.

 

Voluntary disclosures highlight persistent gaps

 

Recent voluntary disclosures show why the issue is likely to remain under scrutiny. In April, Employee Benefits reported that British Airways posted a 41% mean ethnicity pay gap for 2025, narrowly down from 42% a year earlier, while its median gap edged down to 14% from 15%. Hachette UK also reported progress, with its mean ethnicity pay gap falling to 15.1% from 16.9% and its median gap easing to 8.9% from 13.4%.

 

Representation and transparency remain ongoing challenges

 

The wider picture, however, is still one of limited representation and incomplete disclosure. Hachette UK said it is aiming to increase representation of Black, Asian, mixed-heritage and ethnically diverse employees to 18.3% by 2026, up from 15.7% currently. Separately, Grant Thornton UK has expanded pay gap reporting to include class and disability data, reflecting a broader push among some employers to treat pay transparency as part of a wider equality agenda.

 

Reward Strategy Says

 

The findings highlight the growing importance of ethnicity pay gap reporting as the UK moves towards mandatory disclosure requirements for larger employers. While many organisations have yet to publish ethnicity pay data, forthcoming legislation will require employers with 250 or more staff to report a range of pay gap metrics alongside workforce composition figures, increasing scrutiny of pay equity and diversity outcomes. Recent disclosures from major employers demonstrate that significant gaps persist despite gradual progress, reinforcing the need for robust workforce data, transparent reporting and targeted inclusion strategies. Reward teams should begin preparing for the new reporting framework by reviewing data collection processes, analysing pay disparities and ensuring they can communicate results and action plans effectively to employees and stakeholders.

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reward-strategy.com - an online news and information service for the UK’s payroll, reward, pensions, benefits and HR sectors. reward-strategy.com is published by Shard Financial Media Limited, registered in England & Wales as 5481132, 1-2 Paris Garden, London, SE1 8ND. All rights reserved. Reward Strategy is committed to diversity in the workplace. Copyright © Shard Financial Media Ltd.