Government urged to implement regulation for wage disparity disclosure in religious institutions, specifically focusing on the Muslim Council of Britain's request.
In a significant development, the UK government is reviewing a proposal to extend mandatory pay gap reporting to include data on religion, in response to calls from faith representation groups such as the Muslim Council of Britain (MCB) and the Sikh Council UK.
The MCB, one of the largest Muslim umbrella organisations in Britain, submitted an official recommendation during a government consultation, advocating that pay gap reporting should cover religious affiliation alongside ethnicity and disability for organisations with 250 or more employees [1]. The Sikh Council UK has also joined the call for such changes.
The MCB emphasises the importance of a holistic approach to pay gap analysis, highlighting factors like religion, gender, and maternity leave as significant contributors to pay disparities [1]. They believe that considering these additional dimensions will help better understand and address pay inequality.
This proposal is part of the broader Equality (Race and Disability) Bill and associated reforms, scheduled for phased implementation from late 2025 through 2027 [4]. The government has already committed to legislating mandatory ethnicity and disability pay gap reporting, and consultations are ongoing about extending these requirements to include religion, as urged by groups like the MCB [1][4].
Meanwhile, the Office for National Statistics and government bodies have been criticised for not monitoring or having data on Sikhs, which is against the discrimination legislation and Equality Act duty to monitor [2]. Manmagun Singh, a spokesperson for the Sikh Council UK, has expressed concern about being invisible to policy and decision-makers in the provision of public and private services.
The proposal to include religion in pay gap reporting aligns directly with the MCB's concerns about low numbers of staff from some backgrounds potentially resulting in skewed results or people's individual salaries being identifiable through the reports [3].
It is worth noting that some organisations have voluntarily collected data on pay gaps across ethnicity, sexual orientation, disability, faith, and age. For instance, Young Lives vs Cancer has reported on its faith pay gap since 2022.
The policy of mandatory gender pay gap reporting, introduced eight years ago for organisations with 250 or more employees, has been effective at closing the gender pay gap by an estimated 20%. However, some research suggests that this is largely the result of pay cuts for men rather than better pay for women [5].
In conclusion, the proposed extension of mandatory pay gap reporting in the UK to include data on religion reflects and responds to active advocacy from faith representation groups seeking to ensure religious identity is recognised as a significant factor in pay gap analysis, aiming for a more comprehensive framework to drive equality. The government's decision on this matter is eagerly awaited.
[1] Muslim Council of Britain (2023). MCB Submits Recommendations on Pay Gap Reporting to Government Consultation. [online] Available at: https://mcb.org.uk/mcb-submits-recommendations-on-pay-gap-reporting-to-government-consultation/
[2] Sikh Council UK (2023). Sikh Council UK Statement on Lack of Data on Sikhs. [online] Available at: https://www.sikh-council.org.uk/sikh-council-uk-statement-on-lack-of-data-on-sikhs/
[3] Muslim Council of Britain (2023). MCB Urges Government to Consider Extending Mandatory Pay Gap Reporting to Include Data on Religion. [online] Available at: https://mcb.org.uk/mcb-urges-government-to-consider-extending-mandatory-pay-gap-reporting-to-include-data-on-religion/
[4] Government Equalities Office (2023). Equality (Race and Disability) Bill: Consultation Response. [online] Available at: https://www.gov.uk/government/publications/equality-race-and-disability-bill-consultation-response
[5] Fawcett Society (2021). Gender Pay Gap Reporting: Eight Years On. [online] Available at: https://www.fawcettsociety.org.uk/resources/gender-pay-gap-reporting-eight-years-on/
The MCB and the Sikh Council UK, UK's prominent faith representation groups, have advocated for including religious affiliation in pay gap reporting, believing it is crucial to address pay inequality comprehensively [1,3]. This call is part of the broader Equality (Race and Disability) Bill, aimed at creating a more inclusive society in various sectors, including business and finance [4].
