The Pensions Regulator (TPR) has shared its diversity pay gap report, which showed that whilst the mean and median gender pay gaps are below 10 per cent, work is still needed for the regulator to reach its "ambitious" gender pay gap target of 2 per cent.

According to the report, the mean ethnicity pay gap was 14.4 per cent, in favour of white employees, marking a 0.5 percentage point decrease compared to 2023, while the median ethnicity pay gap was 11.6 per cent in favour of white employees, an increase of 1.3 percentage points compared to 2023.

In addition to this, TPR revealed that the mean disability pay gap is -2.6 per cent in favour of employees with a disability, an increase of 0.7 percentage points compared to 2023, whilst the median disability pay gap is -1.5 per cent in favour of employees with a disability.

However, the mean sexual orientation pay gap increased by 1.1 percentage points to 13.1 per cent, in favour of heterosexual employees, while the median sexual orientation pay gap is 11.6 per cent in favour of heterosexual employees, a decrease of 1.4 percentage point compared to 2023.

In addition to this, the mean gender pay gap increased by 0.7 percentage points compared to 2023 to 3.9 per cent, and the median gender pay gap is 8.4 per cent, an increase of 2.7 percentage points compared to 2023.

Given this, whilst TPR pointed out that its current pay gap compares "favourably" with the wider civil service, where the mean gender pay gap is 7.4 per cent and the median gender pay gap is 8.5 per cent, it admitted that it has "more work to do" to reach its gender pay gap target.

However, TPR confirmed that it has developed an action plan to address all its pay gaps, with specific attention to its ethnicity and sexual orientation pay gaps, which continue to be above 10 per cent.

The regulator also suggested that recent changes in senior leadership and other actions undertaken after this date to have an impact on its gaps, as the report is based on data as of 31 March 2024.

Whilst public sector employers must publish their gender pay gap data by 30 March, TPR also highlighted the fact that it also voluntarily published additional pay gap data for ethnicity, disability and sexual orientation as demonstration of its commitment to promoting transparency and driving meaningful change beyond compliance.

Commenting on the report, TPR chief operating officer, Andrew Baigent, said: "As an employer, we want all our people to be valued in an environment where they can give their best.

"As a regulator, our aim is to make workplace pensions work for all savers. We want our commitment to high standards of equality, diversity and inclusion to inspire employers and trustees to think about what they can do.

"This means having the right mix of skills and diversity of thought at trustee boards. To support this, we have published EDI guidance for both pension scheme governing bodies and employers."

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