In 2015, Prime Minister, David Cameron vowed to “end the gender pay gap in a generation”. In April this year, the government set out new rules forcing every company that employs more than 250 people to publish their pay differences by April 2018. This new legislation followed from Iceland, after it was announced that the country is to force all companies to pay all women and men equally, and receive the same salary when completing the same work.
Savoystewart.co.uk sought to investigate this issue of the gender pay gap further, and determine the average difference in pay between men and women across the UK, per annum. Savoy Stewart looked at the mean annual pay of men and women per region, using data derived from the Office of National Statistics.
Despite the gender pay gap discussed almost ‘to death’, it is still a significantly large problem in the UK. Women today still earn significantly less than men on average, and progress in their careers is often slow.
In 2016, analysis by consultants Deloitte, estimated that the pay disparity will not be eradicated until 2069. Moreover, PwC estimates that closing the gender pay gap would bring an £80 billion boost to overall female earnings in the UK – a £5,500 average pay rise for every working woman.
At present, the gap for all employees, full-time and part-time, has been decreasing, but latest figures have shown it was still at 18.1% in 2016. This figure reflects the fact part-time workers – both men and women – earn less on average per hour (85.5p for every £1 paid to a man) than their full-time counterparts and a much higher proportion of women work part-time.
Savoy Stewart wanted to regionally map the gender pay gap difference in the UK, illustrating the ‘best’ place for a woman to be paid ‘equally’ to men. Savoy Stewart found that in 2016, there was a gap of £8,840 in average full-time salaries between men and women per annum in the UK –30% more. In England, the average annual male salary was £7,339 more than that of a woman.
Unsurprisingly for some, Savoystewart.co.uk found that London had the highest pay gap between men and women’s annual salaries. Men were paid a staggering £16,451 more than the female London salary. Figures show that the south of England had the worst difference in annual salary last year; London, the South East (£9,645) and South West (£7,921) were among the top 5 regions with the highest salary difference in the UK.
Figures show that Wales was the most gender ‘equal’ region last year, with the ‘lowest’ annual pay gap in the UK; despite the fact men are still paid £5,258 more than women. The North East was the second-best in the UK, with women earning £5,844 less than men. Yorkshire had the third best gender pay gap, with £6,650 more being paid to males.
Darren Best, MD of Savoy Stewart, comments: “The gender pay gap is a major problem in the UK. Despite the fact the gender pay gap has been decreasing and activism is paving the way for equality, it is still a problem that sadly will last for many more years until a more radical approach is taken by the government to stamp out inequality.”
“Last year, men were earning 30% more than women, on average. It’s important that businesses identify this and give women in the workplace the same opportunities to prove themselves and climb the career ladder. This may mean companies would have to be more flexible in terms of working hours and working from home. Women are a valuable asset to the working world and our financial position in the UK, clearly seen in the 2016 PwC study.”
He adds: “Today, we live in a society where women must work twice as hard as men to achieve ‘equal’ pay, particularly following maternity leave. Many experience the ‘motherhood pay penalty’ and are punished by companies at the end of the year for choosing to bear children – a natural process.”
(Source: Savoy Stewart)
