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| Government undecided on how to present UK gender gap figures | Government undecided on how to present UK gender gap figures |
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| The UK government has not yet decided whether to make companies publish a single figure for their gender pay gap or a series of comparisons for each grade, amid concerns from companies that the policy could create perverse disincentives to hire women, Nicky Morgan, the education secretary, has admitted. | The UK government has not yet decided whether to make companies publish a single figure for their gender pay gap or a series of comparisons for each grade, amid concerns from companies that the policy could create perverse disincentives to hire women, Nicky Morgan, the education secretary, has admitted. |
| The prime minister said on Tuesday that rules would be brought forward in the second half of next year to make any company with more than 250 workers reveal how much on average it pays men and women. | The prime minister said on Tuesday that rules would be brought forward in the second half of next year to make any company with more than 250 workers reveal how much on average it pays men and women. |
| However, speaking on the BBC’s Today programme, Morgan acknowledged there were difficulties around how it would work, which will be figured out during a consultation. She said the figures could be published in bands, allowing comparison at each pay grade, rather than an overall figure for each company. | However, speaking on the BBC’s Today programme, Morgan acknowledged there were difficulties around how it would work, which will be figured out during a consultation. She said the figures could be published in bands, allowing comparison at each pay grade, rather than an overall figure for each company. |
| There are concerns from some businesses that a requirement to publish a single figure could create perverse disincentives not to hire women on low salaries at the bottom of an organisation. | There are concerns from some businesses that a requirement to publish a single figure could create perverse disincentives not to hire women on low salaries at the bottom of an organisation. |
| Confirming the government was not set on requiring a single figure per company, Morgan said: “One of the questions that we’re asking in the consultation which is launched today is exactly how companies should report on the pay gap in their organisation between their male and female employees … We look forward to hearing from many people on this exactly how you publish the information, whether it’s in bands, whether it’s according to grades. | Confirming the government was not set on requiring a single figure per company, Morgan said: “One of the questions that we’re asking in the consultation which is launched today is exactly how companies should report on the pay gap in their organisation between their male and female employees … We look forward to hearing from many people on this exactly how you publish the information, whether it’s in bands, whether it’s according to grades. |
| “The information has to be helpful for employees both within an organisation already and also for future employees who will look at a company and say ‘actually, how does this company pay its male and female employees and is this a place where I would like to work?’. | “The information has to be helpful for employees both within an organisation already and also for future employees who will look at a company and say ‘actually, how does this company pay its male and female employees and is this a place where I would like to work?’. |
| “I should just say, of course, the gender pay gap is at its lowest level ever and for those working full-time under the age of 40 it’s virtually been eliminated. There are I think … a number of reasons why there is a gender pay gap and partly it’s about women not going into higher-earning careers, but also not getting far enough in those careers before they may take time out and that’s what the transparency’s designed to get companies to think about.” | “I should just say, of course, the gender pay gap is at its lowest level ever and for those working full-time under the age of 40 it’s virtually been eliminated. There are I think … a number of reasons why there is a gender pay gap and partly it’s about women not going into higher-earning careers, but also not getting far enough in those careers before they may take time out and that’s what the transparency’s designed to get companies to think about.” |
| Cameron will announce an ambition to end the gender pay gap within a generation. It currently stands at 19.1% for full- and part-time workers in the UK, meaning a woman on average earns around 80p for every £1 earned by a man. | Cameron will announce an ambition to end the gender pay gap within a generation. It currently stands at 19.1% for full- and part-time workers in the UK, meaning a woman on average earns around 80p for every £1 earned by a man. |
| The difference represents the sixth-highest pay gap in the EU, behind countries including Italy and Poland. A consultation will be launched on exactly what information should be published, as well as where and how often. | The difference represents the sixth-highest pay gap in the EU, behind countries including Italy and Poland. A consultation will be launched on exactly what information should be published, as well as where and how often. |
| Cameron will say: “Today I’m announcing a really big move: we will make every single company with 250 employees or more publish the gap between average female earnings and average male earnings. That will cast sunlight on the discrepancies and create the pressure we need for change, driving women’s wages up.” | Cameron will say: “Today I’m announcing a really big move: we will make every single company with 250 employees or more publish the gap between average female earnings and average male earnings. That will cast sunlight on the discrepancies and create the pressure we need for change, driving women’s wages up.” |
| The prime minister’s decision to act on the gender pay gap appears to be another example of the Conservatives taking one of Labour’s policy ideas, seizing more of the centre ground after promising a “national living wage” and cracking down on the non-dom tax status. | The prime minister’s decision to act on the gender pay gap appears to be another example of the Conservatives taking one of Labour’s policy ideas, seizing more of the centre ground after promising a “national living wage” and cracking down on the non-dom tax status. |
| It was the acting Labour leader, Harriet Harman, who first included powers for the government to force companies to reveal their gender pay gap in the Equalities Act of 2010 but the coalition failed to enact the provisions in that law, favouring a voluntary approach. | It was the acting Labour leader, Harriet Harman, who first included powers for the government to force companies to reveal their gender pay gap in the Equalities Act of 2010 but the coalition failed to enact the provisions in that law, favouring a voluntary approach. |
| After only five companies published the gender pay gap of their own accord – Tesco, Friends Life, PwC, AstraZeneca and Genesis – the Liberal Democrats argued for the introduction of mandatory reporting, with former deputy prime minister Nick Clegg securing an amendment in March that would force ministers to make regulations on the subject within the next 12 months. The Conservatives included a promise in their electionmanifesto to stick with the policy in relation to companies with more than 250 workers. | After only five companies published the gender pay gap of their own accord – Tesco, Friends Life, PwC, AstraZeneca and Genesis – the Liberal Democrats argued for the introduction of mandatory reporting, with former deputy prime minister Nick Clegg securing an amendment in March that would force ministers to make regulations on the subject within the next 12 months. The Conservatives included a promise in their electionmanifesto to stick with the policy in relation to companies with more than 250 workers. |
| The CBI, the industry group representing major businesses, said it would rather continue with the voluntary approach and argued the data could be misleading. However, it pledged to work with the government to try to ensure flexibility in how the new rules are applied to each company. Among the Tory critics of the plan, seven male Conservative MPs voted against the coalition’s enabling legislation in March, including John Whittingdale, who is now Cameron’s culture secretary. | The CBI, the industry group representing major businesses, said it would rather continue with the voluntary approach and argued the data could be misleading. However, it pledged to work with the government to try to ensure flexibility in how the new rules are applied to each company. Among the Tory critics of the plan, seven male Conservative MPs voted against the coalition’s enabling legislation in March, including John Whittingdale, who is now Cameron’s culture secretary. |
| It is understood the government is keen to tackle some of the root causes of the gender pay gap because any company that pays a woman less for equal work would already be acting illegally. | It is understood the government is keen to tackle some of the root causes of the gender pay gap because any company that pays a woman less for equal work would already be acting illegally. |
| The prime minister claimed the new “national living wage” would benefit more women than men, but Labour critics argue the cuts to tax credits will hurt women more. | The prime minister claimed the new “national living wage” would benefit more women than men, but Labour critics argue the cuts to tax credits will hurt women more. |
| An analysis by the House of Commons library for Labour leadership candidate Yvette Cooper suggested that 70% of the money being taken from households – £24bn out of £34bn over five years – will come from women. | An analysis by the House of Commons library for Labour leadership candidate Yvette Cooper suggested that 70% of the money being taken from households – £24bn out of £34bn over five years – will come from women. |
| Overall, Labour welcomed the arrival of mandatory pay gap reporting but it called for a new annual pay audit to examine the data produced by the companies. | Overall, Labour welcomed the arrival of mandatory pay gap reporting but it called for a new annual pay audit to examine the data produced by the companies. |
| Related: The bigger picture behind the gender pay gap issue | Letters from Margaret Prosser and Petra Wilson of the Chartered Management Institute | |
| Gloria De Piero, the shadow equalities minister, said it was “good news that the government have finally embraced pay transparency after shelving the Labour legislation for five years”. But she added: “For pay transparency to make a real difference, we need to have an annual equal pay check which measures progress and recommends what action needs to be taken – a move the government voted against earlier this month.” | Gloria De Piero, the shadow equalities minister, said it was “good news that the government have finally embraced pay transparency after shelving the Labour legislation for five years”. But she added: “For pay transparency to make a real difference, we need to have an annual equal pay check which measures progress and recommends what action needs to be taken – a move the government voted against earlier this month.” |