Government reveals next steps, and new research, on addressing pay discrimination facing disabled workers

The government has laid out its next steps – and published new research – on addressing the pay discrimination faced by disabled workers and other oppressed groups.

It is now two years since the new Labour government used its first king’s speech to lay out plans to force large employers to report on the size of their disability and ethnicity pay gaps.

These plans remain one of the ways that ministers hope to address the issue of pay discrimination.

This week, the Office for Equality and Opportunity (OEO) released several documents linked to its developing plans on pay discrimination.

These included a 15-week consultation document, launched this week, on how to reform the equal pay framework, including how to address “gaps and inconsistencies” affecting disabled people, those from minority ethnic groups, and outsourced workers.

It also released findings related to pay discrimination from last year’s call for evidence on equality law.

Respondents to the call for evidence made it clear that pay discrimination persists across sex, race, and disability, with disabled and minority ethnic workers “seen as particularly disadvantaged in terms of pay”.

They also gave evidence that outsourced workers – who are more likely to be disabled people, women, minority ethnic workers, and migrants – were at “heightened risk of pay discrimination”, particularly in low-paid sectors such as cleaning, catering, and care.

Respondents expressed concern about “weak enforcement” of the equal pay protections that are currently in place, with calls for a new equal pay enforcement unit; for trade unions and charities to be allowed to bring collective claims; and for improved access to legal support and greater accountability.

There were also calls for mandatory pay gap reporting to be extended to race and disability, a commitment in Labour’s 2024 election manifesto and the 2024 king’s speech, which it hopes to fulfil through an equality (race and disability) bill.

One piece of research on pay discrimination, published this week and commissioned by OEO, found that complaints of pay discrimination linked to race and disability under the direct or indirect discrimination provisions of the Equality Act were “extremely rare”.

This is partly because most of those experiencing pay discrimination are denied access to pay data “and so will never be aware of a pay disparity”.

Only a fraction of those experiencing sex-based pay discrimination who are aware of the issue and bring a complaint are successful, says the research.

Equal pay legislation – through the Equality Act – currently only applies to sex, but disabled people who are paid less than colleagues for similar work can instead bring claims for direct or indirect discrimination, under the same act.

The report finds: “People face multiple barriers when seeking to redress alleged instances of pay discrimination on the basis of sex, race and disability, with lack of knowledge being identified as a significant barrier.”

The research suggests that introducing a “right to know”, so workers could demand information about the pay of colleagues doing similar work, could help this lack of knowledge.

Another piece of research examines the perspectives of disabled workers and others who have experienced pay discrimination*, as well as employers and legal experts.

The discrimination faced by disabled employees was often linked to employers failing to make reasonable adjustments, which can impact their ability to perform their job, the research found.

Some felt employers had made decisions that impacted their pay based on “assumptions of what would be best for them”, which led to “roles being downgraded, employees being pushed to seek medical retirement, or hours being reduced when people returned from sick leave”.

One disabled employee said they were told: “I’m just looking out for you.”

Another was told: “You need to adjust your expectations for your career because as a disabled person, you’ll never achieve what an able bodied person would be able.”

The government said this week that its new consultation is asking for views on its approach to making the right to equal pay effective for minority ethnic and disabled people; setting up an equal pay regulation and enforcement unit; and ensuring that outsourcing of services can no longer be used by employers to avoid equal pay.

Announcing the new consultation, Sir Stephen Timms, minister for social security and disability, said: “Boosting opportunity and championing the rights of disabled people are at the heart of what this government wants to achieve.

“Part of that commitment means eliminating unfairness in the workplace for disabled people.

“Through this consultation, we’ll hear from organisations around the country on how best to make that commitment a reality.

“This consultation is an important next step in this government’s plan to fix the system by ensuring equal work should mean equal pay, regardless of your background.”

Meanwhile, the Department for Work and Pensions is inviting organisations to bid for a share of a £60 million fund to help “transform” employment support for disabled people.

The Pathways to Work Innovation Fund will open for bids in September, as it seeks “ambitious, creative ideas to help disabled people and those with health conditions get into and on at work”.

An expert panel – half of whom, including Baroness [Tanni] Grey-Thompson, identify as disabled, with more members set to be appointed – will help shape the fund’s design, and advise on which bids should be funded.

So far, no disabled people’s organisations are represented on the panel.

The government also released its fourth annual British Sign Language (BSL) report yesterday (Wednesday).

Only three of 21 government departments – the Department of Health and Social Care, the Department for Education, and the Treasury – produced fewer government communications** in BSL in 2025-26 than in 2024-25.

Overall, BSL versions of communications were up by 41 per cent across government departments in the last year, a rise of 161 per cent compared to 2023-24.

Government departments have also more than tripled the number of publications – such as government plans, strategies, consultation documents, and consultation responses – translated into BSL since 2024-25.

Meanwhile, disabled Conservative peer Lord [Chris] Holmes has published a report this week calling on the government to take “urgent” action to increase the employment rate of blind and partially-sighted people.

*It defines pay discrimination as “when someone is paid less or receives less favourable terms relating to pay than another employee or worker for doing work of similar or the same value”, which can include “variations in basic pay, overtime rates, performance related pay (such as bonuses) and other benefits”

**Government communications include any public announcement on policy or changes to the law, publication of plans, strategies, policies, and consultations and responses, as well as press conferences and social media