The University of Surrey will work with the Observatory to undertake the first comprehensive review of an ethnicity pay gap across the NHS.

The 18-month project - which runs from July 2025 to December 2026 – will focus on examining the differences in pay, career progression, pension contributions and potential impact on cumulative financial earning between staff from different ethnicities. It will also explore potential explanations for any differences and provide recommendations, and evidence-based solutions, to reduce and eliminate unwarranted inequities where they are found to exist.

The Observatory will work with Professor Carol Woodham at the University of Surrey and Professor Doyin Atewologun at the University of Exeter and chief executive of leadership and inclusion consultancy Delta.

In September 2024, 29.5% (449,127) of staff in NHS trusts and core organisations were from an ethnic minority background. This represents a 136.0% (258,784) increase from September 2014, when just 16.8% (190,343) of staff were from an ethnic minority background.

However, ethnic minority staff in the NHS continue to be significantly underrepresented in senior roles. In September 2024, staff from ethnic minority backgrounds made up only 7.9% of all staff in very senior management roles compared to 29.5% overall workforce representation. The gap between overall representation and representation at very senior management roles has increased from 12.6% in 2014 to 21.6% in 2024.

Owen Chinembiri, assistant director workforce at NHS Race and Health Observatory, said: ‘Black, Asian and ethnic minority staff continue to face hurdles when it comes to career progression in the NHS. Even though there have been some improvements over the past few years, this has been slow, patchy and frustrating for ethnic minority staff who have been impacted for far too long.

'Tackling these inequalities is now an urgent matter that requires our collective understanding and action. This research will identify areas where there are unwarranted gaps in pay and career progression, as well as come up with impactful recommendations that can be implemented by the NHS to reduce and, ultimately, eliminate these inequalities.'

Professor Carol Woodhams, Professor of Human Resource Management, University of Surrey, said: ‘It's a chance to uncover the root causes of ethnic disparities in NHS pay and progression, and to help drive meaningful, evidence-based change.'

Professor Doyin Atewologun, chief executive of leadership and inclusion consultancy Delta, said: ‘We will draw on our extensive experience in qualitative, intersectional research across health and other sectors, to contribute to providing a deeper understanding of ethnicity pay disparities and recommending sustainable, practical actions to help address them.'

Current earnings, earnings over career timespans and roles using both quantitative and qualitative data and insight will be explored. Various aspects of established methodologies used to analyse statutory gender pay gap reporting will also be utilised.

Professor Habib Naqvi, chief executive at NHS Race and Health Observatory, said: ‘For too long, large proportions of Black, Asian and ethnic minority staff remain stuck, often stagnating for years, in lower pay bands within the NHS whilst other members of staff are supported to move swiftly through those same ranks.

'Tackling pay and progression gaps will help organisations across the NHS to create an inclusive environment for all staff – ensuring employees from different ethnic backgrounds have peace of mind that they are getting paid according to their skillset.'

Danny Mortimer, chief executive of NHS Employers, said: ‘The delivery of a better NHS and a healthier nation requires the best use of all the talents in our workforce: we cannot jeopardise this by the presence of inequalities and racism in our workplaces.

‘The findings of this review will help us to work with our trade union colleagues to improve pay system and contract design, and will help us all to support NHS organisations across England to take action to address the issues identified by this crucial work.'

The final report – due in December 2026 – will set out clear recommendations aimed at reducing salary disparities. It will also outline evidence-based interventions to tackle disparities in progression within the workplace.