The Business, Energy and Industrial Strategy (BEIS) Committee has published a report on gender pay gap reporting, as part of its ongoing inquiry into aspects of executive pay and the gender pay gap in the private sector.
According to the report, the median gender pay gap is around 18% nationally, but in some organisations it’s up to 40%. The report makes a number of recommendations for strengthening gender pay gap reporting and for closing the gap. The recommendations include:
- extending reporting obligations to companies with 50 or more employees from 2020
- requiring a narrative explanation for pay disparity alongside an action plan to reduce the pay gap (this is currently encouraged, but not mandatory)
- including partner remuneration in pay gap reporting
- giving the Equalities and Human Rights Commission specific enforcement powers, with the ability to levy fines for non-compliance.
The Government has yet to publish any response to the Committee’s report.
In the meantime, the Government Equalities Office (GEO) has published new guidance, What Works with evidence-based practical recommendations on how to close the gender pay gap.