MPs call for smaller firms to publish gender pay gap

MPs have recently said that all organisations with more than 50 employees should publish details of what they pay the men and women in their organisation.

A report from the Business Committee called for the net to be widened, allowing smaller firms to be in scope, as there was evidence of wider pay gaps among them. Under the current ruling, only firms with more than 250 staff must state the average pay difference between men and women.

Business Committee chair Rachel Reeves described some of the biggest gaps as “obscene”.

The report found that just half of the UK’s workforce is covered by the current reporting requirements, despite the recently published gender pay figures putting a “spotlight” on the matter. The report labelled the new reporting regime as a “step forward” but urged government to be more ambitious.

“Transparency on gender pay can only be the first step,” Reeves added.

“persistent gender pay gap shows that companies are failing to harness fully the talents of half the population. The penalties of working part-time, both financial and in terms of career progression, are a major cause.”

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