Source · Select Committees · Treasury Committee
Sixth Report - Sexism in the City
Treasury Committee
HC 240
Published 8 March 2024
Recommendations
11
Accepted
Para 77
Risk of losing hybrid working benefits for women with caring responsibilities.
Recommendation
Hybrid working spread accidentally and unplanned as a result of the Covid pandemic and the full benefits and costs of new hybrid and remote working arrangements continue to be identified. Those arrangements have, however, provided substantial Sexism in the City …
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Government Response Summary
The government agrees that flexible working can improve diversity, noting the recently enacted Flexible Working Act 2023 and Carers’ Leave Act 2023 already assist with flexible working and caring responsibilities. It states its approach is to focus on outcomes for firms rather than specifying interventions, but will provide support where a regulatory view is needed.
HM Treasury
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15
Accepted
Para 81
Progress in supporting employees affected by menopause requires further action.
Recommendation
Welcome progress has been made in recognising the effect of the menopause and in identifying ways of assisting those affected to overcome the challenges it presents without having to leave their jobs. That progress, as in other areas of this …
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Government Response Summary
The government described ongoing actions to support women affected by menopause, including the appointment of a Menopause Employment Champion and her Four Point Plan, new DWP guidance, and identifying menopause as a priority in the Women's Health Strategy.
HM Treasury
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16
Accepted
Encourage firms to establish menopause policies and support to retain talent.
Recommendation
We recommend that Government continue to encourage firms to recognise the impact of menopause and to establish policies and support for those who are affected to ensure that their experience and talents are not prematurely lost from the industry. (Paragraph …
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Government Response Summary
The government has accepted this recommendation, highlighting actions such as appointing a Menopause Employment Champion, promoting her Four Point Plan, launching new guidance on the Help to Grow portal, and prioritizing menopause in the Women’s Health Strategy to encourage employer support.
HM Treasury
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18
Accepted
Para 105
Require PRA and FCA to review bonus cap removal impact on gender pay inequality.
Recommendation
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, …
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Government Response Summary
The PRA has committed to monitoring the effects of the bonus cap removal on remuneration structures, and the FCA will work with the PRA to review its impact on gender pay and inequality at the earliest opportunity once sufficient evidence is available.
HM Treasury
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36
Accepted
Collect data on non-disclosure agreement use by regulated firms in misconduct cases.
Recommendation
In the meantime, we recommend that the FCA collect data on the use of NDAs by regulated firms in cases of non-financial misconduct. This will provide a more detailed, quantitative picture of the extent of their use in financial services …
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Government Response Summary
The government states that the FCA recently issued a non-financial misconduct survey to wholesale firms to collect data on the use of confidentiality agreements in relation to various misconduct types, and they are currently assessing the responses.
HM Treasury
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Conclusions (3)
5
Conclusion
Accepted
Para 45
We heard that linking senior executive pay and bonuses to performance on diversity and inclusion can be an effective way to incentivise change, though this practice is not currently widespread. One of the Women in Finance Charter principles is for firms to have an ‘intent’ to link pay to delivery …
Government Response Summary
The government agrees that linking executive pay to diversity performance is effective and states that a 'comply or explain' mechanism for this is already central to the Women in Finance Charter, with 84% of signatories currently having such a link and ongoing monitoring.
12
Conclusion
Accepted
Para 78
There are also risks that women lose out on promotion or pay progression possibilities if the change in practice towards hybrid and remote working is not accompanied with a change in the culture of firms and the mindset of managers towards ensuring equal opportunity and treatment between those who work …
Government Response Summary
The government agreed with the risks identified and highlighted the Flexible Working Act 2023 and Carers’ Leave Act 2023 as already addressing related issues. It also noted its consultation proposals encourage firms to identify and address barriers, potentially including flexible working initiatives.
34
Conclusion
Accepted
Para 166
The widespread misuse of non-disclosure agreements (NDAs) in sexual harassment cases is shocking. NDAs have the effect of silencing the victim of harassment when they are forced out of an organisation, while protecting the perpetrator and leaving them free to continue their career.
Government Response Summary
The government shares concerns about NDA misuse and is taking action, including the Higher Education (Freedom of Speech) Act 2023 which prevents NDAs in certain misconduct cases, and has committed to legislation clarifying NDAs cannot prevent reporting a crime.