Green - Labour market
Strengthen Equality Act enforcement
Increase workplace equality enforcement, reporting duties and penalties for persistent discrimination.
Last updated: May 2026.
Baseline capacity
The central case adds regulator, tribunal and public-employer compliance capacity above existing Equality Act enforcement.
- Official equality-plan costs are tiny.
- Stronger enforcement is a different policy.
- Tribunal capacity matters.
Core trade-offs
Discriminated workers gain stronger remedies. Employers with poor practices bear compliance and litigation costs. Participation benefits are possible but slow.
- Protected workers gain remedies.
- Employers face compliance costs.
- Output benefits are slow.
Illustrative fiscal impact
+GBP 0.2bn to +GBP 3.0bn. Central estimate: +GBP 0.8bn.
- Positive numbers mean public-finance pressure; negative numbers mean Exchequer savings.
- Gross costs are separated from tax, NI and benefit offsets.
- Private business costs are not automatically fiscal costs.
- Behavioural responses widen the range materially.
- This is not an official costing.
Economic impact by 2027-28
- Jobs: May improve participation, but compliance and litigation can reduce marginal hiring in exposed firms.
- Wages: Could reduce discriminatory pay gaps, not raise pay generally.
- Prices: Small aggregate effect; compliance-heavy sectors may pass through costs.
- GDP / productivity: Short-run likely mildly negative; long-run matching gains uncertain.
Assessment
Stronger enforcement can improve fairness, but the economics are not free. It adds compliance and litigation costs immediately, while labour-market participation and matching benefits are uncertain and slower.
Confidence: Low. Official equality-plan costs are small; a serious enforcement regime is not costed.
Main risks
- Tribunal backlog: More claims may worsen delays unless capacity rises first.
- Compliance burden: Small firms may face fixed reporting and legal costs.
- Weak targeting: Broad duties can produce paperwork without reducing discrimination.
Safeguards
- Fund EHRC and tribunal capacity.
- Target repeat offenders first.
- Publish outcome metrics, not paperwork.
Academic evidence
Autor, Kerr and Kugler, Economic Journal, 2007
Does Employment Protection Reduce Productivity?
Employment-protection changes can reduce productivity where firms face higher firing and adjustment costs.
Supports caution on policies that raise dismissal, scheduling or adjustment costs.
DiNardo, Fortin and Lemieux, Econometrica, 1996
Labor Market Institutions and the Distribution of Wages, 1973-1992
Labour-market institutions can compress wage inequality through wage floors and bargaining power.
Useful for distributional channels, not for claiming free fiscal gains.
Labor Market Institutions and the Distribution of Wages, 1973-1992 (1996)
UK government evidence
Equality and Human Rights Commission, 2025
Strategic plan 2025 to 2028
EHRC strategy sets enforcement priorities for equality and human-rights law.
Relevant to stronger Equality Act enforcement.
Department for Business and Trade, 2026
Employment Rights Act 2025 - Economic Analysis
The ERA economic analysis estimates around GBP 1bn annual direct business cost before social-care bargaining.
Provides official baseline costs and affected groups.
Department for Business and Trade, 2026
Employment Rights Act 2025 impact assessments
The IA collection separates guaranteed hours, unfair dismissal, fire and rehire, union and equality measures.
Prevents treating broad rights packages as one undifferentiated pledge.
Ministry of Justice, 2026
Tribunal Statistics Quarterly: October to December 2025
Employment Tribunals received 13,000 single claims and had 58,000 open single cases in Q3 2025.
Shows enforcement capacity is already a binding risk.
Tribunal Statistics Quarterly: October to December 2025 (2026)
Sources
- PolicyLens illustrative scenario methodology for strengthen equality act enforcement Internal - PolicyLens, 2026
- Strategic plan 2025 to 2028 Regulator strategy - Equality and Human Rights Commission, 2025
- Employment Rights Act 2025 - Economic Analysis UK government report - Department for Business and Trade, 2026
- Employment Rights Act 2025 impact assessments Impact assessment collection - Department for Business and Trade, 2026
- Tribunal Statistics Quarterly: October to December 2025 Official statistics - Ministry of Justice, 2026
- Does Employment Protection Reduce Productivity? Academic article - Autor, Kerr and Kugler, Economic Journal, 2007
- OECD Employment Outlook 2024 International report - OECD, 2024
- Labor Market Institutions and the Distribution of Wages, 1973-1992 Academic article - DiNardo, Fortin and Lemieux, Econometrica, 1996
- Workers' Charter 2026 Party policy source - Green Party of England and Wales, 2026
Other Green policies
PolicyLens estimates are illustrative and not official costings.