Select committee: Treasury Committee
Recommendation 18
Sixth Report - Sexism in the City
Published 8 Mar 2024
Paragraph 105
Addressed to HM Treasury
Treasury Committee Sexism in the City All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Given that gender bonus gaps are typically even larger than gender pay gaps, we are concerned that the removal of the bankers’ bonus cap could increase the difference between the overall take-home pay of men and women in financial services, especially given that pay gap reporting appears to provide little incentive against this. We recommend that the PRA and FCA monitor this closely, and formally review the impact of the bonus cap removal on gender pay inequality in two years’ time.
From: Treasury Committee, Sixth Report - Sexism in the City (HC 240), paragraph 105, 8 March 2024
Government response
The government responded to the whole report on 14 May 2024 (deadline 8 May 2024).
Summary written by Accountability Index from the government's response. It is not the government's own words.HM Treasury, the PRA and the FCA each welcome the Committee's report, with HM Treasury agreeing with some recommendations but declining others, and the regulators saying they will consider the recommendations on data and targets as they finalise policy.
- On extending the Women in Finance Charter beyond senior representation, HM Treasury agrees a talent pipeline matters but is "unpersuaded" that expanding the Charter's scope is "the right way" to drive change, citing the burden on firms.
- On pay gap reporting, HM Treasury agrees that reporting alone will not reduce the gap, but believes it is "too soon to make changes" and does not consider mandatory action plans "fair or effective".
- On salary bands in job adverts, HM Treasury does "not believe that moving directly to legislation is appropriate at this time", saying it makes sense to first learn from other countries' experience.
- On data reporting and target setting, the PRA and the FCA each say they will consider the Committee's recommendations alongside consultation responses when finalising policy, and the PRA says "no decisions have yet been made".