Government in further crackdown on gender pay gap

27 October 2015 -


CMI chief executive Ann Francke welcomes the announcement, saying it was a ‘welcome step forward’ for ‘one of the biggest drivers of gender pay discrepancy’

Matt Scott

Large employers will be required to publish information about their bonuses for men and women under new government regulations aimed at eradicating gender inequality in the workplace.

The move is in addition to the gender pay reporting requirements unveiled by Prime Minister David Cameron in July 2015 and coming into force next year.

Announcing this latest set of reforms, the Prime Minister said: “You can’t have true opportunity without equality. There is no place for a pay gap in today’s society and we are delivering on our promises to address it.”

The new legislation will also extend the plans for gender pay gap reporting beyond private and voluntary sector employers to include the public sector, and the government has committed to eliminating all-male boards in the FTSE 350.

Minister for Women and Equalities Nicky Morgan said: “Governing as one nation means ensuring everyone is given a fair shot to succeed, regardless of their gender. That’s why, from the opportunities women are given in school to the ability to move up the executive pipeline, we are determined to tackle the barriers to women achieving their all.

“Business has made huge amounts of progress already in recent years – the gender pay gap is the lowest since records began, but it should appal us all that, 100 years on from the Suffragette movement, we still don’t have gender equality in every aspect of our society.”

CMI chief executive Ann Francke welcomed the announcement, and said that cracking down on gender inequality in bonus schemes would be ‘good news for business’.

“One of the biggest drivers of gender pay discrepancy, especially at senior levels, is the bonus gap,” she said. “Bonuses are also where gender bias can creep in easily as they are amongst the least transparent forms of pay.

“There's a tendency to reward those in our own image or to think that because men may be the 'main breadwinners’ they deserve higher bonuses. And men often negotiate harder or trumpet their achievements more readily.

“The government’s new reporting legislation is a welcome step forward and will be good news for business. Clearer employee data, improved recruitment and a reinvigorated focus on business culture will help unblock the talent pipeline and support more women to become senior managers and leaders.”

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