Consultation on Equal Pay Launched

The government has launched a consultation on equal pay and pay discrimination. They believe the equal pay system as it stands is too slow, costly and adversarial. They are consulting on fixing the current system which they plan to do first, before broadening protections to disabled people, ethnic minority workers, and outsourced workers. 

So, what do businesses need to know?

1. What are some of the main proposals?
2. Having your say
3. What to do if your business receives an equal pay complaint

1. What are some of the main proposals?

In terms of fixing the current system the government is looking in particular at pay transparency and stronger enforcement. They are seeking views on proposed measures including:

• Pay transparency in recruitment – a statutory requirement for all employers to publish pay information in job adverts (or give it in writing before interview if there is no advert). The exact scope of any requirements (e.g. salary range vs. specific figure, what else beyond basic salary) would be set later by regulations.

• More consequences after breach – Where a tribunal finds an equal pay breach, making it harder to avoid an equal pay audit being ordered by removing three of the four current exceptions. On top of that, tribunals to order a non-discriminatory job evaluation scheme where one isn’t already in place.

• A new Equal Pay Regulatory and Enforcement Unit – This would shift enforcement away from individual claimants toward a proactive regulator. Its home is undecided — options floated are the EHRC (favoured), the Fair Work Agency, or a brand-new body. Proposed new powers include compelling disclosure of pay data before launching a formal investigation, requiring audits/job evaluation schemes during investigations, and requiring organisations to respond to inquiry recommendations.

In relation to longer term expansion, proposed measures under consultation include:

• Levelling up race and disability – pay discrimination on grounds of race or disability would be brought broadly into line with sex-based equal pay protection, but the two regimes stay separate.

• Outsourcing – A new duty on all parties in a contracting chain (principals, intermediaries, service providers) to take “all reasonable steps” to uphold pay equality, designed so outsourcing cannot be used to sidestep equal pay.

• Time limits – Judges would get “just and equitable” discretion to extend the 6-month equal pay time limit, bringing it into line with other discrimination claims. 

2. Having your say 

If you would like to participate in the consultation you can do so before 5pm on 27^th October 2026. You can find the consultation documents here. 

3. What to do if your business receives an equal pay complaint 

If an equal pay complaint arises, it is important that the matter is handled with care. In most cases, the right course is to work through your grievance procedure, which as a first step will typically involve inviting the employee to attend a grievance meeting. 

Should one of your employees raise concerns about equal pay, please get in touch with so we can advise you based on the specifics of your situation.