Gender pay gap: little change

Updated 12.33 Wed Nov 07 2007
Keywords: gap, women, pay

The gender pay gap is closing at a "snail's pace" with women still earning more than 17 per cent less than men.

Official figures from the Office for National Statistics showed the gap between the earnings of full-time men and women closed by just over 0.3 per cent in the past year, to 17.2 per cent.

"This is not just about an extra pair of shoes for a night out. Nationwide, women are less able to save for a pension, leaving them poverty stricken in old age" - Baroness Margaret Prosser

But a separate study by the Institute of Directors (IoD) showed the gap has widened among directors from 19 per cent to 22 per cent - and in some sectors is as high as 26 per cent.

Miles Templeman, director general of the IoD, said the findings were surprising, adding: "We would really like to know why this remains such an insoluble problem."

The Equality and Human Rights Commission said the gender pay gap was closing at a "snail's pace".

Deputy chairwoman Baroness (Margaret) Prosser said: "Even taking into account today's tiny improvement, it will still take at least two decades to resolve this injustice. Women who work full time are cheated of around £330,000 over the course of their lifetime. This is blatant unfairness.

"This is not just about an extra pair of shoes for a night out. Nationwide, women are less able to save for a pension, leaving them poverty stricken in old age."

The commission said new research it had conducted showed only one in five women knew they could challenge unfair treatment in the courts.

"Therefore, the Commission is asking for the power to take 'representative actions' so vulnerable individuals will not have to stand alone in the courts. Their victories will bring change for many.

"Our three-decades old legislation is crying out for reform. With the Government conducting a review of anti-discrimination legislation, now is the time to drag the Equal Pay Act into the 21st century."

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