Tower Hamlets Council is continuing to address an ethnicity pay gap, where employees from Black, Asian, and Multi-Ethnic backgrounds earn less on average than their White counterparts. This disparity was highlighted in the council's 2026 Gender and Equality Pay Gap Report, presented at the Council meeting on Wednesday, 25 March 2026.

The report indicated that Black, Asian, and Multi-Ethnic employees earn 7.26% less than White employees on average, a figure that has seen a reduction from previous years but remains a persistent issue. The median pay gap for this group also shows a disparity, with Black, Asian, and Multi-Ethnic employees earning 6.95% less than White employees.

Infographic illustrating the ethnicity pay gap, showing average hourly rates for different ethnic groups and stating that Black, Asian, and Multi-Ethnic staff earn 7.26% less than White employees.
Infographic illustrating the ethnicity pay gap, showing average hourly rates for different ethnic groups and stating that Black, Asian, and Multi-Ethnic staff earn 7.26% less than White employees.

The report provides a breakdown of average hourly rates by ethnicity, including 'Asian employees', 'Bangladeshi employees', 'Black employees', 'Mixed employees', and 'Somali employees', allowing for a comparison of pay gaps within these distinct groups. For instance, the mean average hourly rate for Black employees is £24.68, compared to £26.87 for White employees. Similarly, the median average hourly rate for Black employees is £24.41, while White employees earn £26.17.

A visual representation of median hourly pay rates for different ethnic groups within the council, highlighting pay disparities.
A visual representation of median hourly pay rates for different ethnic groups within the council, highlighting pay disparities.

Despite these figures, the report noted that Black, Asian, and Multi-Ethnic employees receive a slightly higher proportion of bonuses on average compared to White employees. However, the council clarified that these are primarily recruitment and retention payments for hard-to-recruit roles, rather than performance-related bonuses.

The council has committed to addressing the ethnicity pay gap through its Workforce to Reflect the Community Strategy 2024-26. This strategy includes actions to close the ethnicity pay gap and explore the introduction of class pay gap reporting. Furthermore, there are plans to improve data analysis to gain insights into intersectional data, such as pay rates for Black disabled women, to enable targeted actions. This strategy will be integrated into the broader workforce strategy for 2026-2035.

A bar chart showing the proportion of ethnicity split by pay band, indicating the percentage of Black, Asian, and Multi-Ethnic Employees versus White Employees across different quartiles and the overall LBTH.
A bar chart showing the proportion of ethnicity split by pay band, indicating the percentage of Black, Asian, and Multi-Ethnic Employees versus White Employees across different quartiles and the overall LBTH.

While the council plans to improve its data analysis for intersectional insights, a specific timeline for the implementation of this enhanced analysis has not yet been provided. The integration into the workforce strategy from 2026-2035 suggests a longer-term approach to addressing these complex disparities.

Line graph showing the trend of the ethnicity pay gap in percentages from 2018 to 2026.
Line graph showing the trend of the ethnicity pay gap in percentages from 2018 to 2026.