FINANCIAL SERVICES
Treasury committee urges City firms to undertake equal pay audits
A House of Commons treasury committee has urged City firms to conduct equal pay audits and publish their results. The cross-party group of MPs concluded that while gender pay gaps and an under-representation of women on boards exist in many sectors of the UK economy, they are far greater in the City than elsewhere.
The committee cited research by the Equalities and Human Rights Commission showing that large gender pay gaps exist in the financial services sector, compared with the economy as a whole.
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The committee concluded: “Women working full time earn 55% less than male full time staff. The pay gap for bonuses and performance related pay is even higher at 80%. However, these figures are largely driven by occupational segregation. The evidence may suggest that even when controlling for seniority, a significant gender pay gap exists in the City, but policy makers need a firmer evidence base than that currently provided by the EHRC. We trust the next stage of the EHRC’s financial services inquiry will provide more rigorous analysis. We recommend our successor committee continues to monitor levels and structures of remuneration in the City.”
The report recommended that firms found guilty of discrimination at an employment tribunal should be required to carry out regular equal pay audits.
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Title: Women in the City, House of Commons Treasury Committee, Tenth Report of session 2009-10, published 3 April 2010.
Availability: To download the report in PDF format visit www.publications.parliament.uk/pa/cm200910/cmselect/cmtreasy/482/48202.htm.