BITC’s response to the Government’s commitment to making ethnicity and disability pay gap reporting mandatory for large businesses

Following last year’s government consultation on mandatory ethnicity and disability pay gap reporting,^[1] the UK Government has today announced its commitment to introducing mandatory ethnicity and disability pay gap reporting for large employers, marking the next step in closing the UK’s ethnicity and disability pay gaps.^[2] These measures will help to ensure that everyone has fair and equal access to work and the UK economy can grow. Recent analysis, published in Business in the Community’s (BITC) Then, Now, Next: 30 years of action and impact report,^[3] found that the UK economy could benefit from a further £17 billion annually by making ethnicity pay transparency and closing ethicity pay gaps part of the business agenda.

BITC has been campaigning for mandatory ethnicity pay gap reporting for almost a decade, and data transparency and reporting is one of the seven Race at Work Charter commitments.^[4]

Responding to the Government’s announcement, Richard Iferenta, Partner and Vice Chair at KPMG and Chair of BITC’s Race Equality Leadership Team,^[5] said:

It is excellent to see that the Government has shared their next steps in making ethnicity and disability pay gap reporting mandatory for all large businesses. KPMG has been voluntarily reporting its ethnicity and disability pay gap figures for several years and we have seen first-hand how this transparency can help to retain vital talent, while fostering a sense of belonging and trust among employees. This reporting has also helped KPMG hold itself accountable, ensuring that ambitious yet achievable targets can be set to address any disparities in pay.

Sandra Kerr CBE, Race Equality Director at Business in the Community, said:

Business in the Community is hugely supportive of this major step forward towards closing ethnicity and disability pay gaps once and for all – something we have been campaigning for, for many years. Following the King’s Speech in July 2024, it is great to see this being followed through into action and implementation. Leadership and mandatory reporting are critical to unlocking an estimated £17 billion annually for the UK economy by making ethnicity pay transparency standard business practice, which evidence shows can help employers attract and keep top talent in their workforce.

ENDS

Notes to editor

1. 1. Equality (Race and Disability) Bill: mandatory ethnicity and disability pay gap reporting – GOV.UK
2. 2. Government commits to introducing mandatory ethnicity and disability pay gap reporting for large employers – GOV.UK
3. 3. Then, Now, Next: 30 years of action and impact    – Business in the Community
4. 4. The Race at Work Charter – Business in the Community
5. 5. Race Equality Leadership Team – Business in the Community

For further information, please contact Polly Dacam, Senior Public Affairs and Media Officer, on 020 7566 6638.

About Business in the Community

Business in the Community (BITC) champions responsible business as essential for long term economic growth and resilience.   
 
It is the UK’s leading responsible business network, working with companies of all sizes to tackle society’s most pressing challenges from climate change and place-based community regeneration to inequality, workplace wellbeing, and inclusive growth.  
  
Founded by His Majesty King Charles III in 1982, BITC has over four decades of experience in engaging business and delivering measurable impact in both business and in communities through evidence-based interventions. 

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