Consultation launched on equal pay reform
The government has launched a 15-week consultation to gather views on its next steps around equal pay reform.
In particular, the Office for Equality and Opportunity (OEO) has said it is seeking views on the government’s approach to make the right to equal pay more effective for ethnic minority and disabled people.
As part of its reform agenda, the government is intending to establish an equal pay regulation and enforcement unit, including with the involvement of trade unions.
It also intends to ensure that outsourcing of services can no longer be used by employers to avoid paying equal pay, said the office.
Equalities minister Seema Malhotra said: “The Equal Pay Act was a huge achievement. But 50 years on, it is clear that this landmark legislation needs reform to ensure it works for everyone. The current equal pay framework is too slow, too expensive, and puts too much pressure on workers, businesses, and the justice system.
“This government is committed to ending pay discrimination and making work pay. That is why we are launching this consultation, so we can work with businesses, workers, and trade unions to level up protections for women and make the system fairer for ethnic minorities.
“Fixing equal pay is key to this plan. Fairer workplaces are more productive and better for the economy and society. That is why it is vital we do this properly and get this right,” she added.
The OEO also highlighted that, even with current legal protections, the fact that thousands of pay claims are stuck in the courts system means that pay discrimination persists for ethnic minority and disabled people, women and outsourced workers.
The current equal pay framework has created court and tribunal proceedings that are “too complicated, expensive, and slow, often taking decades to resolve”, the OEO said.
Pay discrimination persists
At the same time, the OEO has published findings from its call for evidence on equality law that ran from April to June and which received 176 submissions.
This concluded that pay discrimination persists across sex, race, and disability boundaries, with a range of structural disparities and inequalities at their root. These included occupational segregation, differences in valuing roles, and the availability of flexible working.
“Disabled and ethnic minority workers were seen as particularly disadvantaged in terms of pay, with several respondents giving evidence that these groups face multiple compounding barriers, and some submitting views that legal frameworks do not adequately address intersectional discrimination,” the report said.
There was also a clear appetite for more guidance on equal pay law, clearer law around reasonable adjustments and equal pay claims, improved data collection and pay transparency, stronger enforcement, and changes to job evaluation schemes.
More work needs to be done on equal pay rights, the call for evidence concluded. “The majority of respondents submitted that the current legal framework offers stronger protections against sex-based pay discrimination than it does for race- and disability-based pay discrimination,” the report stated.
“They also supported extending equal pay rights to include these groups but highlighted the need for legal reform to reduce complexity and risk. Respondents cited procedural hurdles, unclear laws, and low rights awareness as key barriers to equal pay,” it added.
Outsourced workers
Pay discrimination was frequently experienced by outsourced workers, the call for evidence highlighted. Outsourced workers – who are more likely to be women, ethnic minority workers, disabled people, and migrants – were at heightened risk of pay discrimination. This was particularly the case in low-paid sectors such as cleaning, catering, and care.
“Respondents believed that outsourcing often leads to lower pay as current legal frameworks stop outsourced workers from comparing their pay with directly employed staff,” it argued.
There was widespread concern about the current weak enforcement of equal pay protections. The Equality and Human Rights Commission (EHRC) was described as “under-resourced and reactive”.
Furthermore, the call for evidence concluded that current Equal Pay Audit regulations have limited impact in practice. “Respondents reported that tribunals can be reluctant to impose audits, and when they do, the scope is often narrow and enforcement minimal,” the report said.
Other challenges highlighted in this context included poor pay records, fragmented HR systems, leadership resistance, and lack of internal expertise, it argued.
The consultation runs until 5:00pm on 27 October 2026 and can be responded to here.
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