Closing the gap ‘good for British business’

What is the gender pay gap? It is the difference between the average salaries of men and women in a given company or public body. It isn’t the same as equal pay, where firms are required to pay men and women doing the same job the same salary. A company may pay men and women in the same role the same wage but still have a gender pay gap in the firm overall, for example if most of their senior positions are filled by men who earn more. Who has to report it? Companies and public bodies with 250 employees or more were required to publish their data by 4 April and 30 March respectively, and submit it to the Government Equalities Office. It had been estimated that around 9,000 employers would have to submit such information. So far more than 9,000 have done so, but without a full list of firms who are required to, it is not known how many are left to file reports. Which are the best and worst firms so far? NWN media, which owns a range of local newspapers, currently tops the table with a median gender pay gap of 85.2 per cent. Luxury skin- care brand Elemis sits at the opposite end of the spectrum, with a gap of 111.4 per cent in favour of women. Why has the government decided to do this? When the requirement to report came into force in 2017, the government said closing gender pay gaps could add £150 billion to the UK’S annual GDP by 2025. Minister for women and equalities at the time Justine Greening said: “Helping women to reach their full potential isn’t only the right thing to do, it makes good economic sense and is good for British business.” What happens when the deadline has passed? The Equality and Human Rights Commission (EHRC), whose job it is to impose sanctions on noncomplying firms, said it will write to employers who have not submitted their figures on 9 April, giving them 28 days to do so “before an investigation takes place and an unlawful act notice is issued”. Those who report their figures within 28 calendar days of the EHRC’S letter are expected to report on time next year to ensure no sanctions are applied.