LONDON HAS the largest ethnicity pay gap in England and Wales, according to new data from the Office for National Statistics (ONS), meaning black and minority ethnic employees are earned almost 24 per cent less than their white counterparts in 2019.

While overall the ethnicity gap – the difference between the average earning of white employees and ethnic minority employees – is at its smallest level (2.3 per cent) since 2012, in London, the ethnicity pay gap is at 23.8 per cent.

On average in England and Wales, white employees earned an average of £12.40 per hour, compared to the £12.11 earned on average by ethnic minority groups.

Despite the narrowing of the gap, most ethnic minority groups continue to earn less than white British employees.

For employees aged 30 and over the size of the ethnicity pay gap is larger when compared to those aged 16-29 years old.

The report analyses 2019 data and therefore does not take into account any impact from COVID-19.

Responding to the figures, the think tank Centre for Labour and Social Studies (CLASS) tweeted: ONS report that the ethnicity pay gap has narrowed, however, there are factors to consider. Historically the gap has widened during economic downturns and narrowed some time after a recovery has begun (‘first out, last in’).

“ONS has made adjustments for pay determining characteristics in their methodology and it doesn’t reflect the impact of the COVID-19 downturn. Are BAME workers first out again?”

The figures have reignited calls for mandatory ethnicity pay gap reporting. Although employers with more than 250 staff have been required by law to report on their gender pay gap since 2017, they are not required by law to do the same in relation to ethnicity.

“The stats underline why we need the [government] to deliver what it promised, implementing compulsory ethnicity pay monitoring,” CLASS added.

Labour MP Marsha de Cordova is also among those calling for mandatory ethnicity pay gap reporting to be introduced.

Median hourly pay and pay gap, 17 ethnic groups, England and Wales, 2019. Graphic: ONS

Rehana Azam, GMB national secretary, said: “While any progress is welcome, today’s figures underline just how far the UK has to go before pay justice is achieved for all workers.”

Azam added: “We urgently need mandatory employer ethnicity pay gap reporting to be introduced, tough action against discriminatory employers, and a comprehensive plan to address the structural causes of unequal treatment in our society.”

Last year the government consultation on mandatory ethnicity pay gap reporting was brought to a close.

In July, the government said it is continuing to analyse the data from the consultation and committed to issuing a response by the end of the year.