NHS Providers, in collaboration with leading healthcare law firm Hempsons, has published a comprehensive guide for NHS trust leaders on how to understand and tackle the ethnicity pay gap. 

‘Counting the cost: Understanding your ethnicity pay gap’  has been designed to help NHS leaders understand and address ethnicity pay gaps in a meaningful way. The guide explains legal frameworks; how to improve data to better recognise and tackle ethnicity pay gaps; and practical strategies to help minimise this form of inequality. 

26%  of NHS staff belong to an ethnic minority. Yet, our guide shows that only 11% of staff in band 9, at the top of the NHS pay framework are from an ethnic minority, compared with 23% in band 2, the lowest band. 

The guide from NHS Providers and Hempsons is published one year after NHS England’s first Equality, Diversity and Inclusion Improvement Plan, which called on NHS organisations to understand pay gaps by protected characteristic and put in place an improvement plan. This will be tracked and monitored by NHS boards across gender (by 2024), disability (by 2025), and other protected characteristics (by 2026).  

The guide includes examples from organisations whose boards have begun to implement strategies to address their pay gaps, including the use of ‘future Very Senior Manager’ (VSM) programmes to support progression into senior roles, taskforces designed to tackle racism in the workplace with clear executive leadership, and talent management frameworks to ensure all staff have opportunities to explore their aspirations and career development.  

Chapter themes in the guide include: 

• Legal framework and risk: explaining the legal framework on the ethnicity pay gap, the risks associated with not tackling pay inequality, and legal obligations for NHS leaders.
• Understanding data: outlining the importance of breaking down data and taking an intersectional approach to data analysis to support identification of the underlying causes of the ethnicity pay gap.
• Role of boards: including the role boards need to play in driving trust activity to eliminate the ethnicity pay gap and introducing robust governance systems and processes
• Strategies for closing the gap: including leadership and talent management initiatives, robust recruitment processes and regular reporting to embed accountability.

The guide includes a list of practical questions organisations can use to interrogate their own practices, and better understand the ethnicity pay gap within their institution. Case studies include those provided by Cambridgeshire County Council, Berkshire Healthcare NHS Foundation Trust, and Barts Health NHS Trust. 

Saffron Cordery, deputy chief executive at NHS Providers said: 
“We know that the legal frameworks surrounding the ethnicity pay gap are shifting, but the issue itself is long-standing. This is why our guide outlining the impact of the ethnicity pay gap and practical strategies to address it is crucial.

"The NHS is made stronger through its diversity. Taking a person-centred approach is vital when tackling the ethnicity pay gap, as the issues are rooted in multiple interconnected factors including systemic racism and inequalities in recruitment, entry and progression. Our guide aims to maintain momentum on this issue and bolster the efforts of NHS organisations across England. Whilst tackling the pay gap is only one piece of the puzzle when it comes to creating fair and inclusive workplaces, it is an urgent priority. 

“We hope this new report will provide helpful, practical guidance on interventions designed to eliminate the ethnicity pay gap based on learning from both within and beyond the NHS.”

Andrew Davison, head of employment at Hempsons said: 
“Hempsons is pleased to provide our expertise to support this important new guidance, drawing on our experience in employment law. We hope that this guidance will go some way towards supporting the NHS to keep working towards its goal of inclusive and equitable workplace pay.”

The guidance’s foreword is provided by Dianne Greyson, founder of the #EthnicityPayGap campaign. Her insights underscore the necessity of addressing the ethnicity pay gap as part of NHS trusts’ wider work to tackle racism. In the foreword, Dianne writes: “improvement on any identified disparities will require you to apply a holistic view that puts your people at the centre of your future endeavours. That will mean looking at your talent pipeline, reviewing your recruitment policies & procedures, and ensuring your external providers are fully supporting your actions.” 

For further information on how Hempsons can assist you with your discrimination/employment law issues email Andrew Davidson, head of employment at a.davidson@hempsons.co.uk or Saira Ramadan, partner s.ramadan@hempsons.co.uk.