New legislation to tackle gender pay gap unveiled

Businesses with more than 250 employees will have to publish details of the bonuses they pay to men and women under new regulation, it was announced on Sunday.

The legislation is aimed at narrowing the gender pay gap and will affect employers in England, Scotland and Wales.

The latest figures show that men earn an average of 19% more than women in the UK, with the biggest gap seen in employees aged above 40.

Chief Executive Officer of the Chartered Management Institute, Ann Francke, said: "One of the biggest drivers of gender pay discrepancy, especially at senior levels, is the bonus gap. Bonuses are also where gender bias can creep in easily as they are amongst the least transparent forms of pay.

"There’s a tendency to reward those in our own image or to think that because men may be the ‘main breadwinners’ they deserve higher bonuses."

She added that the new legislation was "a welcome step forward" that will be "good news for business".

The government also said that the new rules would affect the public sector and that it would work with businesses to eliminate all-male boards in the FTSE 350.

Minister for Women and Equalities Nicky Morgan said: "Governing as one nation means ensuring everyone is given a fair shot to succeed, regardless of their gender. That’s why, from the opportunities women are given in school to the ability to move up the executive pipeline, we are determined to tackle the barriers to women achieving their all.

"Business has made huge amounts of progress already in recent years – the gender pay gap is the lowest since records began, but it should appal us all that, 100 years on from the Suffragette movement, we still don’t have gender equality in every aspect of our society.

"That’s why I’m delighted that we are going further than ever before to ensure true gender equality in the workplace."

The announcement comes ahead of Lord Davies of Abersoch's final report, due out on Thursday, on the number of women on the boards of the UK's biggest 100 companies. It is expected that the review will expand the current 25% target to the FTSE 250 and increase the target to 30%.

Prime Minister David Cameron: "You can’t have true opportunity without equality. There is no place for a pay gap in today’s society and we are delivering on our promises to address it."