UK Introduces Gender Pay Gap Reporting

UK Introduces Gender Pay Gap Reporting

This follows a liberal democrat warning to conservative coalition partners that they would back the reform.

Women on average have been receiving smaller pay perks  than men.

The coalition has been resisting the change on deregulation grounds.

The change has followed clear evidence showing companies have not introduced gender pay inequalities reporting under a voluntary code.

According to research, only five companies have introduced reporting on pay levels between men and women within their firm.

The deputy Prime Minister Nick Clegg and Business Minister Jo Swinson have maintained that the amendment will now be introduced into the Small Business Bill.


Liberal Democrats have faced  resistance from the Conservatives and have agreed to a voluntary approach to pay transparency on the condition that the decision would remain under review.

A party source has said it has now emerged that just five companies have chosen to publish their gender pay gap voluntarily under a scheme introduced three years ago.

These measures will shine a light on a company’s policy so that women can rightly challenge their employer

The new measures have to be introduced in 12 months and will not apply to companies with fewer than 250 employees.

It is expected that firms would be entitled to report annually and face a fine of £5,000 for non-compliance.

Companies will be expected to publish the difference between men’s and women’s starting salaries and their average basic pay.

The total average earnings of men and women broken down by grade and job type have to be published as well.



Reward components at different levels for example bonuses should be published.

A total of 270 firms, including HSBC, Tesco and Vodaphone have signed up to the voluntary Think, Act, Report scheme introduced in 2011, but only five companies have so far published their actual gender pay gap.

“While the Liberal Democrats have made real progress in areas like shared parental leave and extending the right to request flexible working, the labour market is still stacked against women," said Clegg

“It simply cannot be acceptable that, in the 21st century, women on average still receive a smaller pay packet than men."

“We cannot wait and we cannot dither. We need to sort this out now. Both Jo Swinson and I have pushed for this to happen within government for a long time.

“These measures will shine a light on a company’s policy so that women can rightly challenge their employer where they are not being properly valued and rewarded.”

by Musalia Wycliffe

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