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
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
UK Drought Cuts Harvests and Raises Food-Security Fears
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
×