Workplace Pay Gaps

Deirdre Costigan Excerpts

Tuesday 7th January 2025 Westminster Hall

[Deirdre Costigan (Ealing Southall) (Lab)]

It is a pleasure to serve under your chairship, Sir Roger. I thank my hon. Friend the Member for Brent East (Dawn Butler) for securing this important debate. I declare an interest as vice-chair of the Unison group of MPs.

We have had gender pay gap reporting since 2017. Although it was a very welcome first step, it has proved to be too weak on its own to fully level the playing field between men and women at work. Women are still being paid significantly less than men on average. Gender pay gap reporting relies on a name-and-shame approach that means that employers can continue to report paying women less, year after year, without having to take any action at all to change this. It is great news that the new Labour Government have already taken decisive action by bringing forward the new Employment Rights Bill. The new law will mean that employers have to publish an action plan setting out how they will take tangible steps to reduce gender pay gaps and discrimination in the workplace. Finally, employers will be held to account to ensure that they pay women fairly.

Today, I want to focus on disabled people in particular. Disabled workers are paid an average of over £2 an hour less than non-disabled workers. That is thousands of pounds a year that disabled workers are losing out on. Disabled women experience one of the worst pay gaps as a result of double discrimination: not only do they suffer the gender pay gap, but they experience the disability pay gap, which has barely moved over the past decade. There was no progress at all under the previous Government, and disabled workers are still losing out.

I am delighted that the new Labour Government announced straight away in the King’s Speech that we would bring forward a new equality Bill that will ensure a full right to equal pay for both disabled and black and Asian workers. The new law will finally extend pay gap reporting to disabled workers and will mean that employers with more than 250 staff must publicly account for the difference in how much they pay their disabled staff. However, as the gender pay gap has shown, we will still need to do more, and the groundbreaking disability employment charter outlines some of the solutions. The disability employment charter is a list of nine demands of Government that will break down the barriers for disabled people at work. It was put together by organisations such as Scope, Disability Rights UK and Unison. Over 220 employers have already backed the disability employment charter but the previous Government failed to act on any of its recommendations.

One of the charter’s key demands is for disability pay gap reporting alongside employment gap reporting, because too many employers just do not employ disabled people in the first place, let alone pay them properly. I hope that the Minister will consider mandatory publication of the level of disabled staff at larger employers so that an employer’s commitment to treating disabled people fairly can be properly assessed. Disabled workers are twice as likely to be unemployed than non-disabled workers. That is caused by discrimination in recruitment, but also by workers being hounded out due to bullying and harassment, or a failure to provide reasonable adjustments. Disabled workers are entitled by law to reasonable adjustments—often small changes that can help them do their job—but research by Unison found that a quarter of disabled workers have waited over a year for adjustments to be put in place and many never hear back from their employers at all. They get ignored and the current law is not strong enough for them to do anything about it.

No one can do their job properly if they do not have the tools to do it, so of course those disabled workers lose out on promotion and get stuck on the bottom rung of the pay ladder. That is a key cause of the disability pay gap. Without the right help, many disabled workers are in pain each day at work, or struggle to perform. The next thing they know, they are out of the door: an outcome that could have been avoided with changes to hours, additional breaks, or with, for example, speech-to-text software. That is a massive waste of talent, which has led to a disability employment gap of 30% and nearly 3 million people stuck at home on long-term sick leave when many of them want to work.

The disability employment charter calls for a new right to a two-week deadline to get at least a reply to requests for reasonable adjustments. Currently, there is no deadline for a response—unlike, for example, flexible working requests, to which the employer needs to respond in eight weeks. I gave evidence on that point to the Lords Public Services Committee in my previous role with Unison and I welcome the Committee’s recommendation of a four-week deadline for responses to requests for reasonable adjustments. I know the Minister will consider that issue as she works with colleagues, including the Minister for Social Security and Disability, on proposals to help to reduce the disability employment gap and the pay gap.

Disabled people are full of talent and creativity. For too long they have been pushed out of jobs that they love because of discrimination, bullying and a simple refusal to give them the basic help that they need to thrive at work. The solutions outlined in the disability employment charter, including mandatory publication of the disability pay gap and the employment gap, and a deadline for responses to requests for reasonable adjustments, will help to finally unleash that talent. I look forward to this transformative Labour Government taking forward this vital work.