Budget 2026: Government to ‘act soon’ to address gender pay gap and pay transparency
The government is addressing “calls” to introduce mandatory pay transparency in job adverts and tackle gender pay gaps at firms, chancellor John Healey said in his Budget. Healey said he has “heard calls” to introduce the measure that will ensure employers will be required to disclose salary ranges on job listings, as well as confirming [...]
The government announced plans to address the gender pay gap and implement mandatory pay transparency in job advertisements during its 2026 Budget. Chancellor John Healey stated that he has heard calls for such measures to ensure employers disclose salary ranges and to promote fairness in women's pay and promotions. Tania Goodman, partner and head of employment at Collyer Bristow, noted that this move is part of a broader workplace reform program that could expose previously unaddressed pay disparities.
However, Goodman highlighted the challenge of ensuring the enforcement systems are adequately resourced, as new rights and obligations may increase disputes and claims. The announcement follows the complex rollout of EU pay transparency laws across member states, which require companies to disclose starting salaries and pay ranges in job listings and report gender pay gaps.
While the UK is not part of the EU, many British companies with international operations face difficulties in complying with these regulations. The government has launched a consultation to gather views on reforming the equal pay framework, but human rights watchdogs have urged for stronger measures, such as banning salary history questions in interviews and granting workers the right to view colleagues' pay details.
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