Court Accepts Market Reasons for Pay Gaps

A UK appellate judge has held that an employer (Next) may lawfully pay warehouse staff more than retail staff when higher pay is needed to recruit and retain workers — shifting the inquiry from 'why didn't you raise retail pay?' to 'why did you have to pay more in warehouses?'. At the same time, the government is consulting on expanding equal‑value comparisons (to race/disability and up supply chains), which could undo the practical escape route of outsourcing. — This reframes equal‑pay litigation from presumptive pay parity toward a test that recognizes market recruitment and retention costs, altering employer pay-setting, litigation risk, and potential regulatory countermeasures across supply chains.