The Gender Pay Gap one year on……by Catriona Cookson

Since March 2018 organisations with more than 250 employees are required by law to publish their pay gap data. The deadline for this year is April 4th and according to the Times on the 1st April, 5079 employers have so far submitted their data compared to last year’s total of 10,550. So, it’s either going to be a last-minute rush or some will miss the deadline completely…..other things on their minds maybe?

Early results don’t seem particularly encouraging, with 43% of this year’s early respondents reporting a larger median pay gap than they did last year. Of the 1381 companies which reported results last year and have already done so for 2019, 44% reported a wider gap.

However, there is better news from the Big Four with three of the Big Four reporting lower “total earnings gaps” – which includes the pay of employees and partners. Deloitte has the most impressive statistics with the median earnings gap falling to 14%, PwC at 18%, EY at 18.9% with KPMG increasing slightly from 27% to 28%.

The Financial Reporting Council posts a 6% rise in its gap to 27.8%. Over at the Civil Service the Department for Culture, Media and Sport reports nearly a 23% gap, but the Department for Exiting the European Union has better stats at 5.6%. (Interesting that DEXEU Is lower – is this a reflection of being a newer department or more equally split between men/women, who knows?) There’s various commentary in the press too about the gender pay gap within the medical and university sector while better news from Monzo the mobile-only bank, closing its gap from 34% to 14%, as a result of more women being promoted to senior roles, which really is the only way the stats are ever going to change

So, what happens next? The Equalities and Human Rights Commission can take action against companies which fail to report or misreport their data but has no formal sanctions or incentives for companies which improve (or don’t) their gender pay gap. And that is where real progress will be made … the gap starts to close year on year.

Gender Pay Gap

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