Resolution Foundation: BAME employees face £3.2bn pay gap

Resolution Foundation: BAME employees face £3.2bn pay gap

A new report from the Resolution Foundation has found that the UK’s black and ethnic minority (BAME) workers earn less than their white colleagues in the same jobs.

Using data by 100,000 people over 10 years, the survey has calculated BAME employees to be paid a total of £3.2 billion less than white colleagues every year.

The difference in pay largely represents differences in qualification levels. The calculation takes into account various factors including contract types, education level, degree attainment and industry sector.

The group most affected by the “pay penalty” are black male graduates. According to the report, this group of people are paid an average of  17% or £3.90 an hour less compared to fellow white employees.

“A record number of young BAME workers have degrees, and a record number are in work,” said Kathleen Henehan, research and policy analyst at the Resolution Foundation. “However, despite this welcome progress, many… face significant disadvantages in the workplace.”

“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 BAME pay gaps alongside the reporting they’re already doing on gender.”

“The results should give firms an extra incentive to tackle these issues,” she added.

The report is calling on the government to act on the new initiative requiring companies with over 250 employees to publish gender pay gaps to publish data on ethnic groups. 

A government spokesperson said: “We’ve introduced new laws to help companies ensure the make-up of their boards and senior management is representative of their workforces and we’re currently consulting on proposals for mandatory ethnicity pay reporting as part of a series of measures to help employers tackle ethnic disparities in the workplace.”