Failing to close gender pay gap can hold back businesses, Lancashire leader warns

A lack of diversity can hold businesses back, a business leader has said after a study showed many businesses are still failing to close the gender pay gap.
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Figures submitted to the Government this year amid the coronavirus crisis show more than 81 per cent of UK employers employing more than 250 people who had submitted reports by June 1 had a pay gap in favour of men.

The average pay gap of all reporting companies was 12.9 per cent in favour of men.

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The Government has suspended the legal duty to report due to the virus lockdown but half of firms have submitted figures.

Most businesses in the UK still have work to do to close the gender pay gap according to a new studyMost businesses in the UK still have work to do to close the gender pay gap according to a new study
Most businesses in the UK still have work to do to close the gender pay gap according to a new study

In Blackpool eight organisations submitted a report in 2019. Four had a gap favouring men, one had no gap, three had gaps favouring women.

In Preston twelve organisations submitted a report in 2019. Ten had a gap favouring men, two had no gap, none had gaps favouring women.

In Fylde three submitted reports with two favouring men, and one favoured women, while in Wyre, four favoured men and none had a pay gap favouring women.

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Coral Horn from the Pink Link Ladies business group said: “Women often feel penalised or less valuable in the workplace for bearing the brunt of familial responsibility.

Coral Horn of the Pink Link Ladies business organisation in LancashireCoral Horn of the Pink Link Ladies business organisation in Lancashire
Coral Horn of the Pink Link Ladies business organisation in Lancashire

“This can lead to a lack of confidence to challenge unequal pay or to apply for promotion. There should be more support and encouragement for women in the workplace to progress.

“We are not suggesting that women should be appointed without merit, instead personal development plans should be put in place to help them feel prepared for the role.

"Women bring an extensive skills set to the table, including the ability to wear many hats at the same time, juggling family life with a career, the ability to be a tough negotiator and an empathetic outlook which should not be confused with being ‘soft’.

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“Businesses who have appointed more women to the boardroom have reported an increase in productivity and profits.

The figures analysed by the JPIMedia data group show men are still on average being paid more than womenThe figures analysed by the JPIMedia data group show men are still on average being paid more than women
The figures analysed by the JPIMedia data group show men are still on average being paid more than women

“Stifling diversity is simply holding businesses back. It’s time for change.”

Gemma Rosenblatt Head of Policy and Campaigns at the gender equality charity, the Fawcett Society, said it was vital the gender pay gap data continued to be published.

Ms Rosenblatt said: "The picture from this incomplete data isn't good, with more employers reporting that men were paid more than women than last year.

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"It shows why it is important that the Government doesn't drop the ball on the gender pay gap. The coronavirus pandemic has hit women's incomes hard, so it's more important than ever that this data is published."

Baroness Berridge, Minister for Women, added: ”Tackling the underlying issues that hold women back in the workplace will be important as we look to recover from this crisis.

“We recognise the unprecedented pressure and uncertainty that is currently facing employers, which is why we have taken the decision to suspend the enforcement of gender pay gap reporting this year.”

Since 2017, any organisation with 250 employees or more has been obliged to report their gender pay gap.

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