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The Mayor of London The London Assembly

Labour Market

Ethnicity Pay Gap

It is clear that the gap in median hourly pay between White employees and Black, Asian and minority ethnic group (BAME) employees in London (more than 25 per cent) is much higher than that across England & Wales outside London (around 5 per cent). This is at least partly attributable to the fact that London has a much larger proportion of BAME employees among its workforce than the rest of the country, while London wages tend to be higher than elsewhere. Comparing individual groups with the largest group (White British) in London and nationally shows clear disparities, with some groups, notably Chinese and Indian employees doing relatively well in terms of pay, while others tend to have much lower pay – particularly Pakistani, Bangladeshi and Black African employees.

For most organisations within the GLA group, White employees are paid more on average than those from any BAME group. This is true when calculated for both mean and median hourly pay. The clearest exception is in the London Fire Brigade, where a majority of employees fall within the same pay band, so the median is the same for each group.

Small numbers of employees in some organisations and in some groups within the larger organisations means that very detailed analysis is unreliable. In the smaller organisations – OPDC, LLDC and MOPAC, the differences between years even in the gap in pay for all BAME employees compared to all White employees can show sharp changes even with just a small change in staff, so the differences between annual figures look quite dramatic for these organisations. Change in the larger organisations is likely to be slower, and the figures for TfL, MPS and LFB are very similar for 2020 to those for the previous years, though the percentage of employees with missing ethnicity information can also make a difference. The GLA, though significantly larger than the three small organisations, saw quite a clear change from 2017 to 2018, with the median pay gap reduced from 16 per cent to 11 per cent, which was maintained though to 2020.