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Just four companies reveal gender pay gap under coalition scheme Just four companies reveal gender pay gap under coalition scheme
(about 7 hours later)
A coalition scheme to encourage hundreds of companies to disclose differences in pay for male and female staff has recorded just a handful of participating firms, new figures show. A coalition initiative to encourage hundreds of companies to disclose differences in pay for male and female staff has recorded just a handful of participating firms, new figures show.
"Think, Act, Report" was launched amid great fanfare by the coalition nearly three years ago as a major business-led initiative that would help bridge the difference through transparency. Think, Act, Report was launched amid great fanfare by the coalition nearly three years ago as a major business-led initiative that would help challenge the difference through transparency.
But while more than 200 firms signed up to the initiatives' principles, only four firms have published their gender pay gap and only two of those included different pay grades, which was the target of the scheme. But while more than 200 firms signed up to the initiative's principles, only four have published their gender pay gap, and only two of those included different pay grades, which was the target of the scheme.
The disclosure emerged in an answer to a parliamentary question from Gloria De Piero, the shadow women and equalities minister. Her office believes that more than £90,000 of public money has been spent on the initiative so far, but with few results.The disclosure emerged in an answer to a parliamentary question from Gloria De Piero, the shadow women and equalities minister. Her office believes that more than £90,000 of public money has been spent on the initiative so far, but with few results.
It comes a month after the Lib Dem leader, Nick Clegg, promised that a future government involving his party would force companies to publish pay gap data. It comes a month after the Lib Dem leader, Nick Clegg, promised that a future government involving his party would force companies to publish pay data.
According to De Piero, the new figures expose the Lib Dems' new policy as a desperate attempt to cover up a failed initiative. According to De Piero, the figures show the Lib Dems' new policy is a desperate attempt to cover up a failed initiative. "This scheme has flopped and has been given no priority by government, which only gives lip service to equal pay. Publishing pay gap figures is crucial if firms are to address pay differentials. Indeed, the CBI is calling on the government to set a target to reduce the pay gap," she said.
"The Lib Dems have had four years in government to deliver this. They even have a Lib Dem minister in charge of the department responsible. Instead their 'groundbreaking voluntary approach' has been a total flop," she said. The home secretary, Theresa May, launched the Think, Act, Report voluntary scheme in September 2011 and said: "The aim is [to] improve transparency on pay and wider workplace equality issues to help drive change, including closing down the gender pay gap."
The home secretary, Theresa May, launched the Think, Act, Report scheme in September 2011 and said the "aim is [to] improve transparency on pay and wider workplace equality issues to help drive change, including closing down the gender pay gap". According to its official website, firms that have signed up to the campaign are expected to work towards publishing data showing their differences in pay for men and women.
According to its official website, firms that have signed up to the campaign are expected to work towards publishing actual data showing their own differences in pay for men and women. "We want organisations to take a step by step approach: starting by undertaking their own analysis of these issues, where necessary to take action to address them, and in time reporting on gender equality in their organisation, including on the gender pay gap. In short: think, act and report," one document said.
"We want organisations to take a step-by-step approach: starting by undertaking their own analysis of these issues, where necessary to take action to address them, and in time reporting on gender equality in their organisation, including on the gender pay gap. In short: think, act and report," one document said. The initiative was referenced by George Osborne, the chancellor, and the then minister for women, Maria Miller, in 2012.
The initiative was referenced by George Osborne, the chancellor, and the then minister for women Maria Miller in 2012. But business ministers were asked in July how many participating firms had published detailed gender pay gap information for each grade. The response, from Jenny Willott, the then Lib Dem women and equalities minister, shows that civil servants conducted a survey of around 120 firms participating in the scheme in October last year.
But business ministers were asked in July how many participating firms had publish detailed gender pay gap information for each grade. "At least two companies, Friends Life and Genesis Housing, publish detailed gender pay gap information broken down by every grade," the response said. Two others, Tesco and AstraZeneca, published general pay gap statistics.
The response, from Jenny Willott, the then Lib Dem women and equalities minister, shows that civil servants conducted a survey of around 120 firms participating in the scheme in October last year. Since its launch in September 2011, Think, Act, Report has had two full-time equivalent staff, comprising one team leader who is a grade 7 civil servant and one senior executive officer.
"At least two companies, Friends Life and Genesis Housing, publish detailed gender pay gap information broken down by every grade," the response said. In 2013, the median pay for a woman was 19.7% less than the median for a man. The average hourly wage for women was £10.33 while men were paid £12.97. At the current rate of progress, Labour says, it would take women more than 60 years to achieve financial equality with men.
Since its launch in September 2011, Think, Act, Report has had two full-time equivalent staff, comprising one team leader who is a grade-7 civil servant and one senior executive officer. Around £5,000 has been spent on events and publications to support the initiative. The Liberal Democrats said they would put into force section 78 of the Equalities Act, which was drafted but not implemented by the previous Labour government. The policy was included in the Equality Act 2010, which was passed by the Labour government just before the last general election, but the section referring to it was later shelved by the coalition.
In July, Clegg said the Lib Dems in government would order companies employing more than 250 people to publish the average pay of their male and female employees. A Liberal Democrat source said that Labour's policy is "confused" while their party have consistently argued for large companies to publish their pay gap. "Voluntary measures have been an important first step, but we are clear that we would have liked to move faster than the policy bequeathed us by the last Labour government," he said.
The Liberal Democrats said they would put into force section 78 of the Equalities Act, which was drafted but not implemented by the previous Labour government. A government spokesperson defended Think, Act, Report, saying: "For many companies – especially those in traditionally male-dominated sectors – signing up is a positive first step. We know that at least four choose to publish their gender pay gap, and at least two go further to break it down by grade."
In 2013, the median pay for a woman was 19.7% less than the median for a man. The average hourly wage for women was £10.33 while men were paid £12.97.
A government spokesperson defended Think, Act, Report, saying: "It is not all about pay. For many companies – especially those in traditionally male-dominated sectors – signing up is a positive first step. We know that at least four choose to publish their gender pay gap, and at least two go further to break it down by grade."