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Lib Dem proposal to become law

Businesses ‘shamed’ into declaring their gender pay gap

Equal payThe UK government is to shame businesses into declaring the differences in men’s and women’s pay in one of the boldest moves yet to force employers into taking action to close the gender gap.

Businesses with more than 250 employees will soon have to publish the difference between the average pay of their male and female employees.

Recent research says the gap is around 9.4%, although women in their twenties and thirties earn more than men before falling behind once they have children.

The new legislation will not be wasted on Liberal Democrats who promoted the change in the law while in the coalition.

The CBI responded by saying that publishing such information could be “misleading” but said it would work with the government on the issue.

Katja Hall, CBI Deputy Director-General, said: “Lord Davies’ successful voluntary approach demonstrates the value of encouragement as opposed to using the law.

“Businesses recognise the value of having a diverse board that reflects society and their customers. That is why we have reached this important milestone on time.

“But we must not let our guard drop. Progress has relied on making sure new appointments are diverse, and this must continue as women appointed since the Davies report begin to end their terms on boards and replacements are sought.

“Addressing the gender pay gap is the right priority – and we should set a target for reducing it. While we believe publishing pay gap data could be misleading, we will work with the Government to ensure that rules on what is published are flexible enough to be relevant to each company.

“To see real progress, however, we need to challenge occupational stereotypes by encouraging more women into male dominated industries and investing in careers advice.”


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