The UK government has announced plans to change how employers report gender pay gaps, marking the most significant review of the system since mandatory disclosures were introduced more than a decade ago.

The proposed reforms are intended to improve transparency, reduce reporting loopholes, and ensure that pay gap data more accurately reflects workplace realities as employment patterns evolve.

Under the current framework, companies with at least two hundred and fifty employees are required to publish annual data on differences in average pay and bonuses between men and women.

However, ministers have acknowledged that the existing model can obscure important context, including workforce composition, part-time employment patterns, and the impact of seniority on headline figures.

The government has indicated that updated guidance and potential legislative amendments will focus on clearer presentation of data, improved comparability between firms, and stronger compliance mechanisms.

Officials say the goal is to make pay gap reporting more meaningful for employees, investors, and the public, while reducing administrative complexity for businesses.

Consultations with employers, trade bodies, and equality groups are expected as part of the reform process, with an emphasis on ensuring that reporting requirements remain proportionate and effective.

Supporters of the changes argue that better-quality data will help organisations identify structural barriers to progression and design targeted solutions, rather than treating pay gap figures as a purely reputational exercise.

The government has not yet confirmed an implementation timetable but has signalled that any changes will be phased in to allow businesses sufficient time to adapt.

The move reflects a broader reassessment of workplace equality policy as the labour market continues to shift in response to flexible working, digitalisation, and post-pandemic employment trends.