Starmer accused of delaying law change on ethnic minority pay gap over fears of Farage backlash
Keir Starmer’s government has been accused of delaying moves to tackle pay inequality for ethnic minorities over fears of a backlash from Nigel Farage’s Reform.
A scathing letter from the Ethnicity Pay Gap Steering Committee questioned why it took the government six months to introduce legislation to make reporting on the issue mandatory for large employers, as promised after the end of the review.
In a letter to equalities minister Seema Malhotra, the committee slammed the delay and suggested fear of a right-wing political backlash was at the heart of the problem.
Norreen Biddle Shah, founder of think tank Reboot, who wrote the letter on behalf of the committee, said: “My view is that it is reasonable to ask whether the lack of action on the long-awaited legislation is driven by anxiety about political backsliding, particularly at a time when discourse around race has become harsher and Reformation is growing in popularity.
“But our research shows one thing that is very clear: Despite rising social tensions, the public still overwhelmingly supports transparency and fairness in the workplace.”
His comments came as support for Reform rose three points to 31 per cent in the More in Common poll, with the Tories on 23 per cent and Labor falling two points to just 19 per cent.
There are concerns that Labor is losing out on the Reform drive in traditional so-called red wall seats in the north of England, the Midlands and Wales, by sending an anti-immigrant message, with leading politicians using racially charged language.
Calling for clarification on the legislative delay, Ms Biddle Shah wrote: “The King’s speech was in July 2024 and the consultation ended in June 2025. We were expecting clarity by late 2025. The longer the government says nothing, the harder it is to explain why.”
The issue has been linked to economic growth, with Sandra Kerr, director of race equality at Business in the Community, previously stressing that closing ethnicity pay gaps could add £37bn a year to the UK Gross Domestic Product (GDP) and that mandatory reporting on pay would help ensure employees feel “valued, respected and treated fairly at work”.
The letter was sent to coincide with Ethnicity Pay Gap Day, which aims to highlight persistent pay inequalities faced by ethnic minority workers. This represents an embarrassment for Ms Malhotra, who will be the keynote speaker at the Ethnicity Pay Gap Summit in February.
The Ethnicity Pay Gap Campaign, founded by Dianne Greyson, is calling on employers and policymakers to address the lack of transparency around ethnicity pay gaps that continue to result in many workers earning significantly less than their white colleagues.
Unlike gender pay gap reporting, ethnicity pay gap reporting remains voluntary in the UK, despite growing evidence of structural inequality in pay, progression and opportunities, and despite campaigners calling for it to be made compulsory.
According to numerous studies, across many industries Black, Asian and minority ethnic workers are paid less on average than white workers, even when their role and seniority are taken into account. Campaigners argue that without mandatory reporting, organizations lack both incentive and accountability to address the problem.
A 2024 study by the University of Surrey found that 29.5 per cent of staff in the NHS were from ethnic minorities, but only 7.9 per cent of senior management were from ethnic minorities.
Independent He approached the government for advice.
