Workers call for mandatory ethnicity pay gap reporting by year end

Over half (55%) of UK workers are calling on the government to introduce mandatory ethnicity pay gap reporting within the next 12 months.

Demand for mandatory reporting rises to 65% among ethnic minority workers and 66% among those aged 25 to 34.

Released to coincide with Ethnicity Pay Gap Day (8 January), the study commissioned by workplace equality champion People Like Us (PLU) reveals 56% of ethnic minority workers have been paid less for similar work than a colleague from a different ethnic background. Of this cohort, 14% challenged their unequal pay and received a raise, while 13% faced repercussions after highlighting the issue.

In general, some 35% of the more than 2,000 UK working adults responding to the survey have been paid less than colleagues with similar roles and responsibilities.

Marketing Week’s 2025 Career & Salary Survey uncovered an ethnicity pay gap for full-time workers of 13.3%, up sharply from 8.5% in 2024. This is the highest ethnicity pay gap uncovered by the Career & Salary Survey since 2022. We will be publishing our 2026 ethnicity pay gap figures in the coming weeks.

Marketing’s ethnicity pay gap at highest level since 2022

Returning to the PLU data, over a quarter (28%) of respondents say they would have less confidence in the government’s commitment to fairness at work if the implementation of mandatory ethnicity pay gap reporting is delayed.

A Labour Party 2024 manifesto pledge, the government closed its consultation on introducing ethnicity and disability pay gap reporting as part of the proposed Equality (Race and Disability) Bill on 10 June 2025, with next steps yet to be announced. For context, gender pay gap reporting has been mandatory for all companies with 250 employees and over since April 2017.

People Like Us co-founder, Sheeraz Gulsher, says the government is being sent a clear message it must act now to address structural inequality in UK workplaces.

“Far too many people are experiencing significant barriers to fairness and progression in the workplace – especially younger and ethnic minority workers. If the government is sincere in their pledge in supporting young and ethnic minority workers, they need to address this policy area as a matter of priority,” says Gulsher.

“Reporting isn’t a silver bullet, but it is the bare minimum: a practical step that forces transparency, builds trust, and gives employers the evidence they need to fix what’s broken.”

In the dark

Two-fifths (40%) of respondents to the People Like Us survey believe ethnicity pay gap reporting would improve career development opportunities. This figure rises to 55% among ethnic minority workers.

However, a third (33%) say their organisation does nothing to ensure clear and equitable progression opportunities. Almost three quarters (74%) report their company doesn’t publish salary bands, leaving many employees in the dark about pay inequality.

Just 35% of the sample work for an employer with clear review processes for promotions and pay rises.

Over a third (39%) of those surveyed say financial pressure linked to low or stagnant pay has negatively impacted their mental health. A further 36% say the Autumn budget has worsened their ability to cope with living costs.

Two-fifths (41%) report their pay has fallen behind inflation, causing 60% of the total sample – and 64% of ethnic minority workers specifically – to cut back on buying food and other essentials.

UK government issued ‘supersized’ ethnicity pay gap bill

The data suggests prioritising pay transparency could help brands attract more diverse talent. According to the research, ethnic minority workers (28%) are twice as likely as white workers (14%) to seek a job at a firm which voluntarily reports its ethnicity pay gap.

From a consumer perspective, 27% of shoppers say they are more likely to buy from organisations which publish their pay gaps.

In July 2025, People Like Us issued the UK government with a “supersized” bill designed to expose the gulf in wages caused by Britain’s ethnicity pay gap. The campaign was based on Resolution Foundation research revealing black, Asian and ethnic minorities lose out on an estimated £3.2bn in annual wages due to the ethnicity pay gap.

The creative was supported by a custom-built online receipt generator tool, which allowed individuals to create a personalised receipt and add their name to Britain’s Ethnicity Bill.

Speaking in the summer, People Like Us called the ‘Britain’s Ethnicity Bill’ campaign a “final effort” to ensure the Equality (Race and Disability) Bill proceeds.

To get ahead of any future legislation, brands are being urged to collect the necessarily data and start reporting their ethnicity pay gap voluntarily.

“Employers need to build a data set, analyse it and start communicating their findings with workers,” says Tom Heys, pay gap expert at legal firm Lewis Silkin.

“By acting now – before the reporting becomes an obligation – employers can get a head start on reducing gaps and increase credibility on this issue among their workforce.”

Marketing Week’s Opening Up campaign is pushing for the democratisation of marketing careers. Read all the articles from the series so far here.