Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

UK companies have to disclose gender pay gaps. It's not enough

UK companies have to disclose gender pay gaps. It's not enough

Large UK companies are required to reveal their gender pay gaps. But the rules are failing to address inequality, according to a new report.

The research, by the Global Institute for Women's Leadership at King's College London and the Fawcett Society, concludes that the UK's mandatory gender pay gap reporting, which came into effect in 2017, "has no teeth" and is less effective than other global reporting systems which require a commitment to change.

Researchers analyzed pay gap reporting systems in six countries -- the UK, Australia, France, Spain, Sweden and South Africa -- and ranked the UK and Australian systems in joint last place for lack of effectiveness.

They assessed the gender pay gap reporting policies of each country by scoring them against 11 indicators, including accountability, transparency and enforcement.

The UK was ranked joint last because the government doesn't mandate that employers take action to address any pay gaps reported, while Australia was ranked joint bottom because company data is anonymized after it is submitted, risking a lack of accountability, the report authors said Thursday.

Spain and France were ranked first and second respectively because of laws in those countries which mean companies can face "heavy penalties" for failing to address gender inequality. South Africa was third and Sweden fourth.

The report praises the high compliance of gender pay gap reporting in the UK but calls on the government to require employers to take "remedial measures" to close the gender pay gap, rather than just "monitoring" the figures. Without the need for action, the system "has no teeth" authors said.

What needs to be done?


The report urges the government to make it a legal obligation for companies to publish gap-reducing "action plans" and to fine those who do not report gender pay gap data.

It also says the threshold for gender pay gap reporting should be reduced from companies with 250 employees to 50, to capture more workplaces.

Rosie Campbell, director of the Global Institute for Women's Leadership at King's College London, told CNN Business that the UK's gender pay gap was at risk of becoming worse.

"You can put your gender pay gap out there, and nothing happens," Campbell said. "Whereas a lot of other [reporting] mechanisms around the world [ask for] things they're doing to help eliminate the gender pay gap, such as around parental leave."

According to the UK's Government Equalities Office, between 2017/18 and 2018/19, around half of the gender pay gaps reported by UK employers narrowed. Though, by that measure, half also either stayed the same or widened, the report authors warned.

Official figures also indicate that men continue to be paid more.

The Office for National Statistics (ONS) estimates that in 2020 -- the latest data available -- the gender pay gap stood at 15.5% in the UK, which was down slightly from 17.4% in 2019.

Felicia Willow, interim chief executive at the Fawcett Society, said in a statement that more action was needed.

"Gender equality is good for business, good for our economy, and good for employees. Unfortunately, this report clearly shows just how far behind the UK is from comparable countries in reducing its gender pay gap. Reporting without action is not enough."

The Government Equalities Office said in a statement to CNN Business: "The Gender Pay Gap reporting regulations have helped to motivate employers and focus attention on improving equality in the workplace. Lots of positive work has been done by employers since the scheme began, and ONS figures show that the gender pay gap stands at a record low."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
×