When the US Sneezes, the UK Catches a Cold: The Future of DEI in the UK After US Policy Shifts

There is an old saying that when the US sneezes the UK catches a cold, and with sweeping changes to Diversity, Equity, and Inclusion (DEI) policies in the United States, it’s only a matter of time before these shifts start influencing UK businesses—especially for those that are part of global organisations. Recent developments in the US, including legislative rollbacks, legal challenges, and corporate shifts away from DEI commitments, are reshaping the landscape. But what does this mean for HR in the UK?

The Latest DEI News from the US

Government Crackdown: The Trump administration has ordered the dismantling of federal DEI programs, arguing that they promote discrimination rather than inclusion. This has led to federal DEI employees being placed on leave and a ban on DEI-related federal contracting requirements.

Legal Challenges: Companies are facing lawsuits challenging diversity-based hiring and promotion policies, citing civil rights laws and recent Supreme Court decisions.

Corporate Retraction: Major US firms, including Google, Meta, and McDonald’s, are scaling back their DEI initiatives, pausing representation targets and dissolving DEI teams.

University Reforms: Colleges and universities are rebranding or shutting down DEI offices to comply with new regulations and avoid legal risks.

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What This Means for the UK

While the UK operates under different legal and regulatory frameworks, the influence of US-based organisations, investors, and legal arguments could start shifting how DEI is perceived and implemented in British businesses. Here’s what HR leaders in the UK mag like to consider:

1. Global Organisations Will Be the First to Adapt?

If your company has a US presence, expect changes to filter through quickly. HR policies around DEI, hiring, and employee resource groups (ERGs) could face increased scrutiny, with global headquarters applying a more neutral, risk-averse approach to inclusion initiatives.?

2. Growing Legal and Political Scrutiny on DEI Policies?

While the UK has stronger anti-discrimination laws under the Equality Act 2010, challenges to DEI-related hiring practices, pay equity initiatives, and leadership targets may increase, particularly from those arguing that such policies disadvantage certain groups. The recent UK government inquiry into “woke” workplace policies signals a potential shift in how DEI is viewed at a policy level.?

3. Investors and Stakeholders May Push for a New Approach

Some UK companies may start reconsidering how they communicate their DEI commitments, particularly if investors, shareholders, or US-based clients push back against what they see as “socially engineered” policies. We may see a shift towards “Inclusion & Belonging” rather than explicitly labelled DEI strategies.

4. Potential Shift in Talent Strategies?

Hiring and promotion practices that explicitly prioritise certain demographics could come under increased scrutiny. While positive action remains legal in the UK, companies will need to ensure their DEI strategies do not unintentionally cross into unlawful positive discrimination, especially in light of global legal precedents.?

5. HR Will Need to Balance Compliance with Cultural Expectations

Unlike the US, where DEI is facing strong legal pushback, the UK workforce and public sentiment remain largely supportive of inclusive policies. HR teams will need to strike a careful balance—adapting to global shifts without abandoning the commitment to fostering diverse, inclusive workplaces.

The UK government is currently reviewing aspects of the Equality Act 2010

The UK government is currently reviewing aspects of the Equality Act 2010, with a particular focus on the legal definition of “sex” as “biological sex.” This proposed change has sparked debate, with supporters arguing it provides legal clarity and opponents warning it could negatively impact trans rights (PinkNews). Additionally, discussions are ongoing about implementing Section 1 of the Act, which would require public bodies in England to consider socio-economic disadvantage when making decisions—something already in place in Scotland and Wales (The Guardian).?

Alongside the government review, an independent campaign called the Equality Act Review is pushing for further reforms to strengthen the Act. Their reports, “Equality Act 10 Years On” and “Equality Act 12 Years On,” highlight gaps in the legislation and propose expanding protected characteristics to include socioeconomic background, homelessness, accent, hair, weight, and immigration status. The initiative has gained political backing from MPs such as David Lammy, Afzal Khan, and Wera Hobhouse, who argue that the law must evolve to reflect modern discrimination challenges (Equality Act Review, Report: 10 Years On, Supporting MPs).

These parallel efforts indicate that the UK’s DEI and equality legislation landscape is in flux, with potential changes that could have significant implications for businesses, HR teams, and public institutions.

Final Thought: Is It Time to Review Your DEI Strategy?

HR professionals in the UK could prepare by:

? Reviewing DEI policies to ensure they align with both UK and global regulations.

? Strengthening the business case for DEI beyond compliance—focusing on talent retention, innovation, and organisational culture.

? Engaging legal teams to assess any potential risk areas in hiring and promotion practices.

? Communicating DEI commitments in a way that resonates with both UK and global stakeholders.

The coming months will be critical in determining whether UK businesses hold firm on their DEI commitments or begin adjusting in response to US-led changes. Either way, now is the time for HR leaders to proactively assess and refine their DEI strategies to ensure resilience in a rapidly evolving landscape.

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