Ethnic staff lose £3bn wages every year as white colleagues are paid more than them, pay gap study reveals
- Study found that 1.9 million ethnic minorities earn less than white colleagues
- Think-tank has called on Theresa May to make firms reveal ‘ethnicity pay gaps’
- Theresa May announced in October that she was considering the idea
Black and ethnic minority workers may be losing out on £3billion a year.
A study by the Resolution Foundation found that 1.9million black, Indian, Pakistani and Bangladeshi staff earn less than white colleagues in the same jobs.
The think-tank called on ministers to push forward with plans to make large firms reveal their ‘ethnic pay gaps’.
Theresa May announced in October that she was considering the idea.
A study by the Resolution Foundation found that 1.9million black, Indian, Pakistani and Bangladeshi staff earn less than white colleagues in the same jobs. Stock pic
Kathleen Henehan, an analyst at the Resolution Foundation, said: ‘After the successful steps taken to expose and tackle the gender pay gap in 2018, we now need greater accountability on the ethnic pay gap in 2019.
‘The Government can make this happen by requiring large firms to report their black and minority ethnic pay gaps alongside the reporting they’re already doing on gender.
‘The results should give firms an extra incentive to tackle these issues.’
The think-tank’s calculations exposed a gap of as much as £3.90 an hour in pay rates and showed that having a university degree did not allow ethnic minority workers to sidestep the problem.
Worst affected among non-graduates were Pakistani and Bangladeshi men.
The think-tank called on ministers to push forward with plans to make large firms reveal their ‘ethnic pay gaps’. Stock pic