Government Launches Equal Pay Reform Consultation as Ministers Pledge Simpler System

Thursday, July 30, 2026

The UK  Government has launched a wide-ranging consultation on the future of equal pay legislation, seeking views from employers, trade unions, public bodies and equality organisations on how the current system can be modernised to deliver fairer outcomes for workers while reducing complexity for employers.

The 15-week consultation forms part of the Government's wider programme of employment reform and follows research which concluded that the existing equal pay framework has become increasingly complex, expensive and time-consuming for both employees and organisations. Ministers say reform is needed to ensure the law better reflects modern workplaces while continuing to protect workers from pay discrimination.

According to the Office for Equality and Opportunity, the consultation will examine how equal pay claims can be resolved more efficiently and whether changes are needed to simplify legal processes that have often taken years to conclude. The Government said it wants to create a system that delivers justice more quickly while reducing unnecessary costs for employers and the courts.

The consultation also explores the treatment of outsourced workers, who currently face additional challenges when bringing equal pay claims. Ministers are seeking evidence on whether existing legal protections remain fit for purpose as outsourcing and more complex employment arrangements become increasingly common across both the public and private sectors.

Alongside the consultation, the Government published research examining the lived experiences of people who have experienced pay discrimination because of their race or disability. The research found that many individuals reported barriers in understanding their rights, concerns about challenging employers and lengthy legal processes that discouraged people from pursuing claims.

For employers, the consultation provides an opportunity to help shape reforms that could simplify compliance while maintaining robust protections against discrimination. Many organisations have argued that although they support equal pay in principle, the current legal framework can be difficult to interpret and costly to administer, particularly in complex cases involving large workforces.

The Government said the consultation sits alongside its wider commitment to introduce mandatory ethnicity and disability pay gap reporting for larger employers, reinforcing its ambition to improve workplace transparency and tackle inequalities across the labour market.

Equalities Minister Seema Malhotra said the reforms are intended to ensure that the equal pay system works better for everyone, while Employment Rights Minister Sir Stephen Timms said the consultation is an opportunity to create a framework that delivers fairer and faster outcomes for workers and employers alike.

The consultation is open to businesses, public sector organisations, trade unions, legal professionals, representative bodies and members of the public. Responses will help inform future legislation as the Government continues its programme of employment law reform.

Sources

  • UK Government – Office for Equality and Opportunity