Gender pay gap widens

Gender pay gap has widened for the first time in five years, reversing a period of "steady progress" on closing wage difference between men and women

TUC General Secretary Frances O'Grady
TUC General Secretary Frances O'Grady

The gender pay gap has widened for the first time in five years, reversing a period of “steady progress” on closing the wage difference between men and women, new figures have shown.

The difference based on median hourly earnings for full-time workers increased from 9.5% last year to 10%, but for all employees, including part-timers, the figure rose from 19.6% to 19.7%, said the Office for National Statistics (ONS).

It was the first time the figures have increased since 2008, according to the ONS.

The TUC said its analysis of the data based on mean, or average, figures showed that the gender pay gap was 15.7%.

TUC general secretary Frances O’Grady said: “Years of a slow, steady progress on closing the gender pay gap has gone into reverse. Ministers should be ashamed of presiding over this latest dismal record on pay.

“It is not right that in Britain today women still earn 15% less per hour than men, a pay gap that costs full-time women over £5,000 a year.

“The light-touch, voluntary approach to tackling gender pay inequality is clearly failing. We need tougher action to force companies to look at their pay gaps, while government can lead the way by making all new jobs available on a part-time or flexible basis.”

The figures showed that median annual earnings for full-time employees were £27,000 in the year to April, an increase of 2.1% from the previous year.

A tenth of full-time workers earned less than £7.28 an hour, while 10% earned more than £27 an hour, both figures increasing by 1.5% over the year.

Weekly pay was highest in London at £658, and lowest in Northern Ireland at £460.

Full-time pay for men increased by 1.8% to £556 a week and went up by 2.2% for women to £459. Median weekly pay for all workers, full and part-time, was £417, an increase of 2.6%.

Dr John Philpott, director of The Jobs Economist, said: “A particularly puzzling feature of the findings is that they show growth in median weekly pay across the UK regions between 2012 and 2013 to be a mirror image of regional unemployment rates, with unemployment hot spots registering the biggest pay rises.

“While the reasons for this require much closer examination - and remember pay levels are higher in low unemployment regions - the much commented upon post-recession tendency for workers to ‘price themselves into jobs’ does not therefore appear to be evident for all regions in these data.”

The TUC said the real value of the average full-time wage fell by more than 0 over the last year, and by nearly 000 since 2010.

The biggest cash reduction was in London with a fall of 825 in the real value of the average full-time wage since 2010 and the biggest percentage fall was in the South East with a 7.8% fall over the past three years.

O’Grady said: “This is what a cost of living crisis looks like, not a recovery, and with people on low to medium wages spending more on basics like energy, fuel and housing, the crisis is even worse for ordinary people.”

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