On 14 July 2026, the Government launched a consultation on reforms to the equal pay and pay discrimination framework. The consultation runs until 27 October 2026 and aims to improve transparency, close gaps and streamline the current system, which is noted to be suffering from “systemic failures that place the burden of enforcement too heavily on individuals”.
The Current Equal Pay Framework
Claims under the current framework can take years and sometimes decades to resolve. This is largely due to the complexity of the framework, paired with a consistently high volume of cases brought to the employment tribunals (Tribunals), which causes persistent backlogs and slow resolution times.
Enforcement of such claims has also come under scrutiny for placing too much of the burden on the individual instead of fostering a proactive and preventative approach.
A recent Government research paper found that, despite the current legal protections, women, ethnic minorities, disabled people and outsourced workers continue to be disproportionately discriminated against in relation to pay, with the latter three groups also lacking sufficient protections.
Proposed Changes
The Government’s proposed changes to the framework have been set out in two phases, detailed in summary below:
PHASE 1: Transparency and Streamlining Pay Discrimination Claims.
A statutory requirement for all employers to publish transparent pay information in job adverts or, alternatively, provide candidates written information on salary prior to the interview stage;
The proposal to reinstate the use of an optional standard questionnaire in pay discrimination disputes only, with the aim of promoting early resolution of possible pay discrimination. Tribunals will be given powers to draw inferences from an employer’s response, or lack of response, to such a questionnaire;
The establishment of the Equal Pay Regulatory and Enforcement Unit, covering pay discrimination where it relates to sex, disability or race, and reasonable adjustment provisions. Its aim will be to improve the tools available to help employers and workers uphold the law, including powers to require disclosure of evidence, audits and job evaluation schemes;
Widening the duty of a Tribunal to order an equal pay audit after a finding of an equal pay breach; and
Where pay discrimination is found, the requirement for Tribunals to order a non-discriminatory evaluation scheme.
PHASE 2: Extending Existing Protections for All
Ensuring that pay discrimination on the basis of race and disability is taken as seriously as pay discrimination on the basis of sex;
A duty on employers to take all reasonable steps to uphold pay equality in their contractual arrangements with a particular focus on ensuring that outsourced workers are not given less favourable terms for reasons that discriminate based on sex, race or disability;
Enabling Tribunals to modify discriminatory contractual terms where pay discrimination on the basis of race or disability is found;
A requirement for employers to undertake an equal pay audit and job evaluation scheme where pay discrimination is found on the basis of race or disability;
Enabling claims for pay discrimination on the basis of race and disability where work is “rated as equivalent” or “of equal value”;
Permitting the use of hypothetical comparators in limited scenarios, for example, comparison with a successor; and
Giving Tribunals discretion to extend time limits for equal pay claims, provided it is “just and equitable” to do so, as is already available for discrimination claims.
Practical Implications For Employers
Although the above reforms remain under consultation, they evidence the Government’s position on changing this area of law to strengthen employee rights. This, in turn, places a greater burden on employers to ensure they are taking all reasonable steps to comply with equal pay and pay discrimination legislation.
Employers should begin looking at the steps they can take to ensure compliance with current legislation. For example, many employers already publish salary figures in their job adverts; however, if the changes proposed in the consultation are made, employers could begin to face statutory penalties if salary information is omitted.
Key Questions For Employers
Are pay ranges or salary information currently published in job adverts?
Do you have a documented and objective process for setting pay?
Are roles evaluated consistently across the organisation?
Are decisions made with regards to pay clearly documented?
Could you explain pay differences if challenged by employees, applicants, unions or a tribunal?
Have you considered whether race or disability-related pay disparities may exist in your workforce?
Are HR, recruitment and reward teams prepared for potential new transparency and enforcement obligations?
The Employment Team at BPE can provide expert assistance in answering these questions and help navigate the complexities of pay governance, equal pay and discrimination legislation. Please click here to speak to a member of the team.
