Advancing Equality: Further Upcoming Reforms in UK Law?

Why should I read this?

The government has initiated a call for evidence on several key areas of equality law and practice.

In conjunction with the commencement last month of the consultation on mandatory ethnicity and disability pay gap reporting, this call for evidence marks another significant step towards the government's commitment to creating a more equal society and eliminating pay discrimination.

The call for evidence seeks to gather perspectives and evidence from a range of stakeholders to inform the forthcoming Equality (Race and Disability) Bill. It also provides a valuable indication of the government's considerations on future policy development.

The Equality (Race and Disability) Bill aims to establish a robust legal framework around race and disability discrimination protections, including new requirements for pay gap reporting and enhanced equal pay protections. Additional measures to strengthen wider equality protections are already encompassed within the separate Employment Rights Bill, which includes enhanced harassment protections.

What do I need to know?

The call for evidence, which closes on 30 June 2025, covers several key areas:

Equal pay rights for ethnic minority and disabled people

Currently, there is no provision for individuals who have experienced race or disability pay discrimination to bring an equal pay claim. Instead, such claims must be pursued as direct or indirect discrimination claims, or (in the case of disability only) as discrimination arising or reasonable adjustment claims. However, in practice, race or disability pay discrimination claims are rarely made.

Through the call for evidence, the government is seeking to identify the barriers to redress faced by those experiencing race or disability pay discrimination. For instance, what are the advantages of the equal pay scheme that are not available to those bringing claims for race or disability pay discrimination? Or are there other underlying factors contributing to the comparatively fewer claims for race or disability pay discrimination? What approaches could address those barriers?

Ensuring that outsourcing of services cannot be used to avoid paying equal pay

The equal pay legislative provisions require claimants to compare their work with that of an actual comparator performing like work, work rated as equivalent or work of equal value. The comparator must satisfy several specified conditions, including being employed by the same or an associated employer.

In situations where services are outsourced to external providers, outsourced workers may be integrated into the workforce for extended periods, performing the same tasks as directly employed workers but receive lower pay. However, since these outsourced workers are not employed by the same or an associated employer, they cannot demand equal pay. Consequently, the outsourcing of services could potentially be used to circumvent equal pay protections.

Through the call for evidence, the government is seeking to understand the prevalence of pay discrimination experienced by outsourced workers on the basis of race, disability or sex and how liability could be fairly established in practice if the protection is extended. For example, where should one company’s responsibilities begin and another’s end? Or should there simply be a system of shared liability?

Improving enforcement

Although the Equality and Human Rights Commission (EHRC) possesses a range of enforcement and litigation powers concerning equal pay, the primary enforcement mechanism remains individual claims submitted to the employment tribunal. Consequently, there is a persistently high volume of equal pay cases progressing through the tribunal system, significantly contributing to the current backlog of 424,000 open multiple claim cases and the prolonged waiting periods for hearings.

The government proposes to establish a new Equal Pay Regulatory and Enforcement Unit to strengthen the enforcement of equal pay rights. The institutional placement of this Unit, along with its specific functions, remains under consideration. For instance, it might become part of the EHRC or operate as an independent unit, potentially possessing different or broader enforcement powers than those currently held by the EHRC.

Through the call for evidence, the government is seeking to understand how enforcement of the equal pay scheme can be bolstered, including how the Equal Pay Regulatory and Enforcement Unit can be most effective. For example, whether any changes to the EHRC’s powers or functions, or the creation of additional powers or functions for the Equal Pay Regulatory and Enforcement Unit, are needed to support the effective enforcement of equal pay?

Improving pay transparency

As noted above, measures to strengthen equality protections and requirements are already included in the Employment Rights Bill and the Equality (Race and Disability) Bill. This includes a requirement for equality action plans to address gender pay gaps, new ethnicity and disability pay gap reporting requirements and extended equal pay protections.

Through the call for evidence, the government seeks to explore whether additional pay transparency reforms would be appropriate. This could encompass measures akin to those in the EU Pay Transparency Directive, such as publishing salary ranges in job advertisements and providing employees with information on pay, pay structures, and criteria for progression. Furthermore, the government is considering whether the current provisions under which an employment tribunal can order an equal pay audit should be expanded.

The government acknowledges that compliance with additional measures may pose a challenge for business, potentially involving significant risk and cost burdens, and it seeks to gain a deeper understanding of that impact. For instance, what are the consequences of pay transparency for employers across different sectors, types of work, and pay structures? How can any risks associated with implementing pay transparency be mitigated? Additionally, if equal pay audits are extended to cases where pay discrimination has been identified based on race or disability, what are the potential risks for businesses, and how might those risks be mitigated?

Workplace harassment

Strengthening legal duties to prevent sexual harassment and creating harassment-free workplaces are key priorities for the government. Measures to strengthen protections came into force last October through the Worker Protection (Amendment of Equality Act 2010) Act 2023 and further enhancements are included in the Employment Rights Bill, including requirements for employers to take all reasonable steps to prevent workplace sexual harassment and to create and maintain workplaces and working conditions that are free from harassment, including by third parties.

Although forthcoming regulations will specify steps that employers must take to prevent sexual harassment and matters to which employers must have regard when taking measures, there remains a lack of evidence about the most effective measures.

The government therefore seeks input through the call for evidence to identify measures that have proved to be effective and specific issues that employers should take into account when trying to reduce or prevent sexual harassment in the workplace. The government is also seeking to understand whether sexual harassment protections should be extended to volunteers, as well as any other effective interventions that the government should be considering.

Strengthening protections against combined discrimination

Some individuals may encounter discrimination due to a combination of protected characteristics. Although section 14 of the Equality Act 2010 addresses direct discrimination based on two combined protected characteristics, this provision has not yet been commenced. As a result, those subjected to less favourable treatment because of multiple protected characteristics must file discrimination claims for each characteristic separately, even if they pertain to the same incident.

The government has pledged to commence section 14 and is gathering evidence to understand the occurrence of discrimination involving combinations of protected characteristics. This data will help determine the most effective way to enforce the provision. For instance, it seeks to understand how levels and patterns of combined discrimination may vary across different situations, sectors, or regions.

Socio-economic duty

Another provision contained in the Equality Act 2010 which has not been commenced in England is the socio-economic duty. That duty has however been commenced in Scotland and Wales and requires specified public authorities, when making strategic decisions such as deciding priorities and setting objectives, to consider to how their decisions might help to reduce the inequalities associated with socio-economic disadvantage.

Through the call for evidence, the government is seeking evidence to support the implementation of the socio-economic duty in England and how it can be made as effective as possible.

Public Sector Equality Duty (PSED)

The PSED requires public authorities and non-public bodies exercising public functions to have due regard to the need to eliminate discrimination, advance equality of opportunity and foster good relations between different people.

The PSED is an important duty to ensure that equality issues are proactively considered. Through the call for evidence, the government is keen to explore whether the duty is working effectively where non-public bodies are exercising public functions. For example, what are the barriers and enablers to compliance? Is it currently clear when a non-public body is or is not exercising a public function, and so when PSED does or does not apply?

What should I do next?

The Equality (Race and Disability) Act is expected to be published by late July 2025 and is anticipated to come into force in 2026. There is likely to be a transition period to allow employers to get ready for the changes. However, employers should not wait to review and where necessary update their diversity and inclusion strategies and associated processes.

As a minimum, employers with 250 or more employees should be taking action now to ensure that they have the infrastructure in place to be able to report on their gender, ethnicity and disability pay gap figures for relevant employees. Further, all employers should expect and start planning for further enhancements around equal pay and wider discrimination protections.

Allowing enough time to plan and implement plans and being agile to revise, assess and embed actions through workforce engagement as the details of the new requirements are confirmed, will be key to minimising risk.

Further reading/resources

A copy of the call for evidence and associated documents can be found on the government website. 

Our briefing Ethnicity and disability pay gap reporting: Consultation launched on mandatory reporting provides further details of the consultation launched on 18 March 2025 on mandatory ethnicity and disability pay gap reporting. Our briefing Duty to prevent sexual harassment provides further details of the measures to strengthen protections which came into force in October 2024.

Our interactive tracker sets out the government’s employment policy commitments. Our tracker provides a horizon scanning feature to help employers keep ahead of the curve, and reviews each policy proposal describing practical implications for employers and progress to date.

How we can help

Our team of specialist lawyers has been at the forefront of equality developments for many years and have the experience and track record to help organisations navigate through this complex and reputationally sensitive area. The advice and practical support of our specialist team can help with comprehensive risk assessments, practical action plans, supporting narratives for pay gap reports and assistance with shaping wider diversity and inclusion strategies.

Update: The government published its response to the call for evidence on 29 October 2026. Please refer to our briefing - The UK Employment Rights Act: equality and harassment duties – for further details.