Disability pay gap reporting - Will it help or hinder equality?
Posted on 31st March 2025
The government’s proposed Equality (Race and Disability) Bill would require employers with more than 250 staff to report on their disability pay gap. While this is intended to improve equality, research from the Business Disability Forum has raised concerns that the approach could have a negative impact.
More disabled employees = good workplace?
Reports would focus on the number of disabled employees and the difference between the median pay of disabled and non-disabled workers. This could suggest that workplaces with higher numbers of disabled employees and lower pay gaps are more disability inclusive, but this is not necessarily true.
Firstly, the figures can only show how many workers have chosen to tell their employer they are disabled. Employers may choose not disclose a disability for a number of reasons – positive or negative. They may have privacy concerns or be worried about suffering discrimination.
But it could also be that they don’t need to disclose their disability to get support. Both employees and employers agree that the most inclusive workplaces are those where support is offered to all staff, without the employee needing to disclose a disability. However, a low number of workers disclosing disabilities could make them look less inclusive.
Conversely, as poor mental health can be a disability, disability is more prevalent in industries with high stress, high pressure and poor wellbeing. A high percentage of disabled workers could suggest such workplaces are disability-friendly, when in fact the workplace is causing health problems.
Does it have any impact?
The Business Disability Forum found that disabled employees were more against mandatory reporting than employers. Employers simply didn’t think reporting was effective. They believed good employers already offer support and bad employers will focus on data above supporting employees, while many will take a tick-box approach but not do anything with the data.
They may be right, as many organisations being required to collect and publicly report disability data for years, but disabled people still report difficulty and delays in getting reasonable adjustments.
Encouraging non-inclusive behaviours
Even worse, this approach could encourage employers (consciously or not) to influence their figures with poor practices that actively harm disabled employees. This could include pressuring employees to disclose disabilities or consider promotions, or refusing reasonable adjustments that could widen the pay gap, such as reduced hours or voluntary reductions in seniority.
Some employers even spoke of having to “ignore” the disability pay gap to continue disability employment programmes that benefit disabled workers.
Some inclusion managers also said that poor figures lead to bigger budgets and more attention for diversity. Organisations with a high number of disabled employees or a low pay gap may feel able to invest less in support.
Consultation
The government is currently inviting feedback on the issue to inform their next steps. The consultation is open until 10th June 2025. You can provide your views here.
What should employers do?
It will be a while until reporting becomes law, whether the government goes ahead with the bill as planned or makes amendments. Remember that, whatever happens with reporting, you still have a duty not to discriminate.
Employers should focus on understanding the law around disability discrimination and ensuring they are not discriminating within their business. High numbers of disabled staff or a low pay gap won’t make you immune to discrimination claims.
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