- 55% of UK workers surveyed want the Government to commit to introducing mandatory ethnicity pay gap reporting within the next 12 months as workers await outcome of the Equality (Race and Disability) Bill consultation
- 40% believe ethnicity pay gap reporting would improve career development opportunities, rising to 55% among ethnic minority workers
- 39% say financial pressure linked to low or stagnant pay has negatively impacted their mental health, with ethnic minority workers more likely to report the most severe impacts
- Over a third of workers surveyed (36%) say the Autumn Budget has worsened their ability to cope with living costs
- A majority of ethnic minority workers surveyed (56%) say they have discovered a colleague from a different ethnic background was being paid more for doing similar work
UK workers are calling for urgent Government action to tackle pay inequality, with a majority backing a 12-month commitment to introduce mandatory ethnicity pay gap reporting, according to new research from People Like Us and Censuswide.
The findings come as many households face mounting financial strain. Over a third of workers surveyed (36%) say the Autumn Budget announced in November 2025 has worsened their ability to cope with living costs. Four in ten (41%) say their pay has fallen behind inflation, and 60% say they have cut back on food shopping or essentials because costs are rising faster than pay.
A clear public mandate for a 12-month timeline
More than half of workers surveyed (55%) want the Government to commit to mandatory ethnicity pay gap reporting within the next year, rising to 65% among ethnic minority workers and 66% among Millennials (25-34). Workers also see reporting as a lever for opportunity: 40% believe it would improve career development opportunities, increasing to 55% among ethnic minority workers.
Pay secrecy remains the norm
A third of workers surveyed (33%) say their organisation does nothing to ensure clear and equitable progression opportunities. Among those who say their employer takes action, 35% report a clear review process for promotions and pay rises. However, 74% of workers say their employer does not publish salary bands, leaving many employees in the dark.
Transparency is shaping hiring and buying
Ethnic minority workers surveyed are twice as likely as white workers surveyed to say they are more likely to seek a job at firms that voluntarily report their ethnicity pay gaps (28% vs 14%). Transparency also affects consumer behaviour: 27% of workers say they are more likely to buy from organisations that publish their pay gaps, underlining a clear commercial incentive for transparency.
Delays come with political and trust costs
Workers believe delays matter. Over a quarter (28%) say they would have less confidence in the Government’s commitment to fairness at work if implementation is delayed. And a quarter (25%) believe delays happen because the Government is concerned the issue could fuel political division or dog-whistle politics.
Unequal pay by ethnicity, especially among younger workers
A majority of ethnic minority workers surveyed (56%) say they have discovered a colleague from a different ethnic background was being paid more for doing similar work. Of those, 14% challenged it and received a raise, while 13% say they challenged it but faced repercussions. Younger workers surveyed are most likely to report unequal pay by ethnicity: 61% of Gen Z workers (18-24) and 59% of Millennials (25-34) report experiencing it, compared to 18% of workers aged 55+.
Pay unfairness also extends beyond ethnicity comparisons: 35% of workers say they have been paid less than colleagues with similar roles and responsibilities, rising to 40% among ethnic minority workers (and 34% among white workers).
Cost of living pressure is intensifying the impact of low or stagnant pay
Workers report mounting strain as pay fails to keep pace. Four in ten respondents (41%) say their pay has fallen behind inflation in the past year, and 60% say they have had to cut back on food shopping or essentials due to rising costs and pay not keeping up, rising to 64% of ethnic minority workers who said the same.
Among those cutting back:
- 37% are reducing portion sizes
- 35% are switching to lower quality or ultra-processed alternatives
- 27% are eating less or removing fresh fruit and vegetables
- 25% are reducing protein
- 25% are skipping meals to get by
- 20% are reducing or removing dairy products like milk, cheese and yoghurt
The impact is also visible in savings: 16% as alarmingly, almost two thirds (65%) of British workers are spending from their savings to get by, rising to 70% of ethnic minority workers who are doing this.
Wider context: concerns about immigration direction and workforce impact
The research also finds strong public concern about the policy direction on immigration. Almost half (49%) are worried about the direction the Government is taking, and 42% believe proposed ILR changes will negatively impact the workforce, rising to 58% among ethnic minority workers.
Sheeraz Gulsher, co-founder of non-profit People Like Us, commented:
“Working people are sending the Government a clear message: act now. 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. 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.”
Tom Heys, pay gap expert at Lewis Silkin, added:
“It’s time for employers to get ready for ethnicity pay gap reporting, which was one of the Government’s manifesto commitments. Employers need to build a data set, analyse it, and start communicating their findings with workers. By acting now - before the reporting becomes an obligation – employers can get a headstart on reducing gaps and increase credibility on this issue amongst their workforce.”
