Ernst & Young has been named the most gay-friendly employer in the country by Stonewall, the gay rights organisation.

The professional services firm came out top in Stonewall’s annual Workplace Equality Index, which showcases the UK’s top 100 public and private sector employers for gay, ***, and bisexual staff.

The firm, which was named third in the list last year, has moved up to the top slot thanks to a number of initiatives including its sponsorship of Student Pride, its raising of sexual orientation with clients as a workplace issue, and its work on ‘inclusive leadership’.

Ernst & Young also operates a network for gay, ***, bisexual and transgender staff – EYGLES – which was recognised by Stonewall as a ‘star performer’.

Liz Bingham, Ernst & Young’s Managing Partner for People said: "To say we are thrilled and proud to be named Stonewall’s 2012 Employer of the Year is truly an understatement. We believe that a strong commitment to diversity and inclusiveness is not only important for our people, but is also good business in an increasingly competitive and interconnected world."

Last year’s winners, the Home Office, came second in the list, while the rest of the top ten were: Barclays, Sussex Partnership NHS Foundation Trust, Metropolitan Housing Partnership, Goldman Sachs, Accenture, IBM, Gentoo and Simmons & Simmons.

“Competition for a place in the Top 100 was fiercer than ever this year,” said Ben Summerskill, Stonewall chief executive. “With new, more demanding criteria, every employer securing a position in the Top 100 has performed impressively – and the participating employers collectively employ over 1.9 million people. The index remains a powerful tool used by Britain's 1.7 million gay employees and 150,000 gay university students to decide where to take their talent and skills.”