Does race determine pay?

Last Updated on 27 August 2025 by Rebecca Young

Research carried out by the TUC shows that black workers earn significantly less than similarly qualified white workers, signalling that race determines pay. It is staggering that this difference can exist today, but the research found that the pay gap between ethnicity is 23%.

White graduates earn on average £18.63 an hour, compared with £14.33 earned by black graduates.

Surprisingly the pay gap is widest for those with higher qualifications, even extending to black workers who attended the UK’s most prestigious universities.

It is difficult to escape these statistics which suggests that:

• Race plays a big role is determining pay
• Racial inequalities are entrenched in UK society and business

The TUC have called on the UK government to recognise the scale of the problem and directly challenge racial inequalities in the workforce.

With the introduction of the Equal Pay Audit, wage equality is now a hot topic that all businesses need to come to terms with, and quickly. Whether it is equal pay by gender or race, companies who fail to practice equality are exposing themselves to risk and possible financial penalties. An Employment Tribunal will find unequal pay to be an act of discrimination which may result in unlimited fines.

Any employer concerned about unequal pay of inequality in the workplace should contact Avensure today to discuss how we can audit for discrimination, whether intentional or not.

Rebecca Young

Advice Team Leader BA (Hons), PgDip HRM

Education:
Rebecca has a Postgraduate Diploma in Human Resources Management from Manchester Metropolitan University as well as a Bachelor of Arts (BA) in Philosophy and Sociology.

Main sector of expertise:
She has a wide-range of experience across all business sectors, advising on HR and employment law matters including redundancy, TUPE, absence management, and employee conduct.

Achievements and awards:
Rebecca has designed and delivered comprehensive live webinar training programmes for employers, hosts Avensure Live monthly CPD-accredited webinars, and has published numerous articles and PR briefings on employment law, helping clients and colleagues stay informed and compliant.

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