Source · Select Committees · Treasury Committee
Recommendation 21
21
Rejected
Paragraph: 108
Amend pay gap reporting guidance to include partners' remuneration and increase granularity.
Conclusion
We repeat our predecessor Committee’s recommendations that the Government considers amending the pay gap reporting guidance so that partners’ remuneration is included, and that the granularity of pay gap reporting be increased to provide more clarity around where pay gaps exist within firms and incentivise more targeted action to reduce them.
Government Response Summary
The government rejects amending pay gap reporting regulations to include partners' remuneration or increase granularity, preferring that further analysis remains voluntary. It notes that many firms already voluntarily publish partner data and that new guidance offers recommendations for additional, voluntary calculations.
Paragraph Reference:
108
Government Response
Rejected
HM Government
Rejected
We have always been clear that the mandatory gender pay gap reporting requirements are just a starting point. In order for the requirements to be applicable to all large organisations, c10,000 employers, they have been designed to provide the most accurate reflection of the gap in the widest range of employment and company arrangements. We believe it is better that further analysis remains voluntary. This enables us to balance the burden on businesses while in no way preventing larger firms with greater capacity from going further. In responding to the previous recommendation we highlighted that many firms already voluntarily published additional data including partners. We are pleased to say that this continues to be the case, and has now become an expectation. Similarly, since the committee’s last report we have also published further guidance on ‘how to understand your gap’. This provides recommendations of additional calculations that organisations could do, and what they may indicate about the drivers of their gap, thus enabling them to take more targeted actions.