Equal Pay and Pay Discrimination Consultation

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The UK Government has launched a consultation on reforms to current equal pay and discrimination framework that will be introduced in two phases. This is designed to introduce reforms to address failings of the current system and simplify the equal pay regime.

In Great Britain, it is over 50 years since the Sex Discrimination Act 1975 and implementation of the Equal Pay Act 1970.  Both are consolidated in the Equality Act 2010, though separate legislation remains in Northern Ireland where this consultation does not apply.

In its Make Work Pay document ahead of the 2024 General Election, the Labour Party committed to:

  • Improving the right to equal pay for disabled and ethnic minority groups;
  • Establishing an equal pay regulatory and enforcement unit; and
  • Ensuring that outsourcing of services can no longer be used by employers to avoid paying equal pay 

In 2025, the UK Government introduced a Call for Evidence that asked for feedback on existing equality legislation and possible reforms  This evidence-gathering exercise was designed to shape an Equality (Race and Disability) Bill (still awaited) which will see larger employers (250 plus) add this to their annual Gender Pay Gap reporting obligations.

Fast forward to the 2026 consultation which plans reforms in two phases:

Phase 1

This will ‘fix the current system’ and includes:

  • Requiring employers to improve pay transparency processes and pay information will have to be published in job adverts or provided in writing before interview;
  • Allowing Employment Tribunals to order equal pay audits and order a non-discriminatory job evaluation scheme where discrimination is found; and
  • Improve enforcement by establishing the Equal Pay Regulatory and Enforcement Unit (EPREU) which will require disclosure of evidence, audits and job evaluation schemes; 

Phase 2

Overall, this would ensure employers;

  • Regard pay discrimination based on race and disability in the same way they do gender pay discrimination; and
  • Require employers to uphold this in contracts, enforceable by the EPREU

For Bookkeepers

The consultation closes on 27 October 2026 and ICB encourages members to respond if they will be impacted.  There are three ways to respond:

1.     Online;

2.     By E-Mail to equalpayconsultation@cabinetoffice.gov.uk; or

3.     By post to Equality Framework Team, Cabinet Office, 1 Horse Guards Road, London, SW1A 2HQ

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