The authorities’s choice to reject necessary ethnicity pay hole reporting for companies has been criticised as “nonsensical” by MPs.
Conservative MP Caroline Nokes stated it additionally confirmed an absence of will “to foster a fairer and more equal society”.
She chairs a parliamentary committee which has known as for pay hole rules to be prolonged to incorporate race.
But the federal government has stated it doesn’t wish to impose any new reporting burdens on enterprise.
Companies with greater than 250 workers have been required to publish their gender pay hole statistics since 2017, revealing stark variations at some companies between the quantity ladies and men are paid per hour on common.
Earlier this 12 months the cross-party Commons girls and equalities committee known as on these companies to additionally publish pay variations between ethnic teams of their employment.
The authorities rejected the proposal, pointing to a report that discovered publishing statistics on the ethnicity pay hole “may not” be the “most appropriate tool for every type of employer seeking to ensure fairness in the workplace”.
“There are significant statistical and data issues that would arise as a result of substituting a binary-protected characteristic (male or female) with a characteristic that has multiple categories,” the federal government stated.
Ms Nokes condemned the federal government’s choice, saying in an announcement: “What is lacking in this administration is not resource or know-how, but the will or care to foster a fairer and more equal society”.
“Introducing mandatory ethnicity pay gap reporting for larger businesses would set the ball rolling, reducing inequalities between different ethnic groups,” she stated.
The committee stated analysis urged that addressing race inequality within the UK labour market may enhance the UK financial system by £24bn a 12 months.
Companies already reporting gender pay hole figures had been “already well resourced” to assemble information on ethnicity and pay, the committee added, noting the federal government was offering detailed data on how companies may publish these statistics on a voluntary foundation.
Dianne Greyson, founding father of the #EthnicityPayGap marketing campaign group, advised the BBC that the federal government’s choice was “not acceptable”.
Previously, the commerce union Unison has known as for necessary ethnic pay hole reporting, saying it’s “essential to recognise the interrelation between the ethnic pay gap and career progression.”