Increasing demand for mandatory reporting of Socio-Economic Backgrounds in UK Financial Services
Updated: Sep 5
Leading social mobility organisations are urging UK financial regulators to force firms to report the socio-economic backgrounds of their employees, intensifying pressure on the industry to break what campaigners describe as a persistent "class ceiling".
Progress Together, the Social Mobility Foundation and upReach have called on the Financial Conduct Authority and Prudential Regulation Authority to make socio-economic background a mandatory reporting metric rather than leaving disclosure voluntary.
In a joint letter to the regulators, the organisations urged them to "make socio-economic background a mandatory reporting requirement", arguing that greater transparency could help create a more productive, innovative and representative financial services sector.
The campaign follows evidence showing substantial disparities in career progression. Progress Together’s 2024 research, covering almost 200,000 employees across 34 financial services firms, found that 58% of people in senior positions came from higher socio-economic backgrounds, compared with 45% at junior levels. Representation of employees from lower socio-economic backgrounds at senior level increased only modestly, from 26% to 28%.
The FCA and PRA proposed in 2023 that larger financial firms report several diversity characteristics, but socio-economic background was included as a voluntary metric. Progress Together said 84% of its members supported regulators compelling employers to report such data.
Catherine McGuinness, who chaired the City of London Corporation-led Socio-Economic Diversity Taskforce, previously said, "We need to break the ‘class’ ceiling."
She argued that removing barriers to progression could improve productivity, retention levels and innovation. Supporters believe mandatory disclosure would make firms more accountable and allow employers, regulators and investors to track whether recruitment and promotion practices are genuinely widening access to senior roles.