Government consults on “excessively complex, costly” equal pay framework

In the consultation foreword, the Office for Equality and Opportunity described the current framework as "excessively complex, costly, and protracted".

It said workers are trapped in "endless litigation and employers face intractable uncertainty", with employment tribunals facing backlogs of tens of thousands of claims.

A number of councils have been subject to equal pay claims in recent years. Birmingham City Council was forced to issue a section 114 notice in 2023 amid historic equal pay liabilities estimated at around £750m.

More recently, GMB Union announced that more than 4,000 women had joined an equal pay claim against Leeds City Council, valued at "hundreds of millions of pounds". The union is also coordinating a separate equal pay claim against Coventry City Council.

The Government said its consultation seeks views on measures designed to prevent pay discrimination before it occurs, strengthen enforcement, and simplify the resolution of disputes when they arise.

Among the proposals are increased transparency over pay practices, reforms to make pay discrimination claims faster, fairer and more cost-effective, and the creation of a new Equal Pay Regulation and Enforcement Unit with stronger powers to uphold equal pay law.

The consultation document argues that the current framework fails to provide employers and workers with the data and tools needed to identify discriminatory pay practices; places too much of the burden for enforcing the law on individuals; encourages lengthy disputes over technical details; and does not provide sufficient protection for groups including disabled employees, ethnic minority workers and outsourced staff.

The Government said it intends to first improve the existing system by streamlining procedures and strengthening transparency and enforcement, before introducing broader reforms to close gaps in the law and extend protections.

The consultation will run for 15 weeks.

Seema Malhotra, Minister for Equalities, said: "The Equal Pay Act was a huge achievement. But 50 years on, it is clear that this landmark legislation needs reform to ensure it works for everyone. The current equal pay framework is too slow, too expensive, and puts too much pressure on workers, businesses, and the justice system.”

Sir Stephen Timms, Minister of State 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 means equal pay, regardless of your background."

Adam Carey