Government aims to end pay gap between men and women

The government has outlined plans to end the pay gap between men and women within a generation.

It says the first step is the introduction of the living wage, which will be set at £7.20 per hour from April 2016 and rise to more than £9 per hour by 2020. This will be particularly helpful to women as they are more likely to be low earners.

Ministers also want to introduce greater transparency by requiring companies with more than 250 employees to publish the difference between the average pay of their male and female employees.

Looking to the future, Prime Minister David Cameron has launched a consultation to look in detail at how the new gender pay gap regulations will be designed, including what, where and when information will be published.

The consultation will also seek views on what more can be done to encourage girls to consider the widest range of careers, support parents returning to work and help women of all ages reach their full potential and have the security of a well-paid job.

Mr Cameron said: “We will make every single company with 250 employees or more publish the gap between average female earnings and average male earnings. That will cast sunlight on the discrepancies and create the pressure we need for change, driving women’s wages up.”

Current legislation already requires that women should be paid the same rate as men if they are doing the same or comparable work. Anyone who feels they are being discriminated against in terms of equal pay may be entitled to compensation.

Please contact Jackie Cuneen if you would like more information about the issues raised in this article or any aspect of employment law.