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February 12, 2016updated 04 Sep 2016 10:20pm

UK companies forced to reveal gender pay gap, as Nicky Morgan reveals new diversity regulation & league tables

News: 8,000 UK employers expected to disclose the wages of their employees.

By Ellie Burns

Women and Equalities Minister Nicky Morgan has announced plans which will require UK companies to disclose the number of men and women working at their organisations, in a move designed to fight the ever-widening gender pay gap.

Morgan revealed that companies with more than 250 employees will be forced to reveal their pay gap, with this data then used to form new diversity league tables. With the new regulations expected to impact around 8,000 employers around the UK, companies will have to start calculating the pay gap from April 2017. This is 12 months ahead of the first publication of the diversity league tables.

Under the new regulation, employers must also publish their gender pay gap on their websites. They will be required to report this every year, with senior execs expected to sign off the figures personally.

The new regulation has been designed so that there is, as Morgan said, ‘nowhere for gender inequality to hide.’ The Women and Equalities Minister called on women to demand more from businesses, as both employees and consumers, and ensure ‘the recognition and reward they deserve.’

This new regulation follows Prime Minister David Cameron’s pledge last summer to ender the gender pay gap within a generation. However, ONS statistics have seen just a 0.2% improvement in the wage gap between 2014 and 2015. The gap between men and women’s pay for those working full-time was 9.4% in April 2015, down from 9.6% in 2014.

Although this new regulation is a step in the right direction, Regina Moran, CEO of Fujitsu UK and Ireland, said: "As the CEO of Fujitsu in the UK & Ireland, I believe that it’s clearly wrong that the gender pay gap in the UK still sits at 9.4%, and it’s important that companies eliminate any biased pay structures within the organisation.

"But differences in pay are often part of a wider context, as businesses fail to create environments that support women in the long term. This results in lower retention rates for women and ultimately in fewer women in the top positions.

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"Businesses must tackle not only unfair pay, but discriminatory cultures. Measures such as women’s networks and mentoring, as well as flexible working arrangements, are vital in supporting women through their career. Firms must also be aware of and eliminate any subliminal bias in hiring, promotions and pay rises. And ultimately, businesses must be vocal in acknowledging the advantages of a diverse, multi-skilled workforce for keeping them innovative and successful."

Moran spoke about women in tech and equality in an exclusive interview with CBR – to read it in full please click here.

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