Overview

This bill mandates that larger employers in England and Wales publicly report on pay differences between different ethnic groups within their workforce. The aim is to increase transparency and potentially address ethnic pay gaps.

Description

The Ethnicity Pay Gap Bill requires the Secretary of State to create regulations forcing employers to report on pay disparities among employees of different ethnicities. These regulations will dictate:

• The specific information employers must include in their reports (employee and employer data).
• How employers calculate employee numbers.
• Reporting frequency (no more than once a year after the first report).
• The format of the reports.

The bill exempts employers with fewer than 250 employees, public authorities (as defined in Schedule 19 of the Equality Act 2010), and government departments/armed forces from the reporting requirement. Failure to comply is a punishable offence, subject to a fine.

Regulations must be approved by both Houses of Parliament before taking effect. The bill applies only to England and Wales.

Government Spending

The bill doesn't directly specify any increase or decrease in government spending. The main cost will likely be associated with the development and enforcement of the regulations by the government, and the costs incurred by employers in complying with the reporting requirements. No specific figures are provided in the bill text.

Groups Affected

The bill will primarily affect:

• Employers (in England and Wales) with 250 or more employees: They will be required to collect, analyse, and publish data on their ethnicity pay gap, potentially incurring administrative costs.
• Employees: The data collected might reveal existing pay inequalities and potentially lead to discussions and action to address them.
• Government bodies: Responsible for creating and enforcing the regulations.

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