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28 June 2017

Retirement income gender gap grows by £1,000

  • Women retiring in 2017 will be £6,400 a year worse off than men
  • The annual retirement income gender gap has grown by  £1,000, from a gap of £5,400  in 2016
  • Women’s expected retirement incomes stagnate while men’s continue to grow
The gap between women’s and men’s annual average expected retirement incomes in 2017 has grown by £1,000 in the last year, according to new research from Prudential.

The unique annual research has, over the last 10 years, tracked the future financial plans and aspirations of people planning to retire in the year ahead. This year’s Class of 2017 research shows that women expecting to retire this year will be £6,400 a year worse off on average than their male counterparts, and nearly £200 a year worse off than women who retired in 2016.

Women this year expect an average annual retirement income of £14,300, which is the second highest on record although slightly down on the £14,500 for those retiring in 2016. This year’s female retirees are feeling slightly more confident about their finances, however, with 50 per cent saying they are financially well-prepared for retirement, compared with 48 per cent in 2016.

Meanwhile, as women’s incomes stagnate, men’s expected retirement incomes have shown a fifth consecutive year of growth. Men retiring this year expect an annual retirement income of £20,700 – £900 a year more than last year which is helping drive the gender gap to its highest level for three years.

The Prudential study, which has tracked the retirement income gender gap for 10 years, shows that men retiring this year will be 45 per cent better-off than women. The gender gap was at its widest in 2008 when the average expected retirement income for men was 84 per cent higher than that expected by women.


You can read the full press release here

Scottish Ministers urged to take action on gender pay gap

Scottish ministers are being urged to develop an overarching strategy to tackle the gender pay gap. In the report of its wide ranging inquiry into the gender pay gap in Scotland, the Scottish Parliament’s Economy Jobs and Fair Work Committee have made a long list of recommendations which, if implemented, would contribute to the development of an overarching strategy to tackle the gender pay gap.  The Committee wants the strategy to include an action plan and measurable targets.

The Committee’s recommendations include:

  • Developing a suite of indicators to measure the underlying causes of the gender pay gap, using a comprehensive data set that includes part-time workers;
  • Introducing a more thorough analysis of the economic benefits of reducing the gender pay gap;
  • Carrying out a gendered analysis of education in Scotland;
  • Monitoring the number and success rate of flexible working requests made in Scotland, in both the public and private sector;
  • Increasing wages in care beyond the living wage to more accurately reflect the value of the work undertaken;
  • Encourages all businesses to create an action plan to tackle their own gender pay gap; the Committee also recommends that the Scottish Government put in place guidance to support employers in creating such a plan.
The report also includes a number of recommendations aimed at getting the Scottish Government’s business partners both to get more girls into STEM subjects and occupations, and to engage with tackling the gender pay gap.

The Committee acknowledges the willingness of the Scottish Government to address the issue, and feels there is an opportunity for Scotland to become a world leader in reducing the gender pay gap. The report and the Committee’s recommendations are intended to set the groundwork for this.

You can read the report here.

21 June 2017

Extension of pay gap monitoring to race unlikely

The Queen’s Speech has this to say on pay gap monitoring:

“My Government will make further progress to tackle the gender pay gap and discrimination against people on the basis of their race, faith, gender, disability or sexual orientation.”

Gender Pay Gap
  • This year we introduced mandatory Gender Pay Gap reporting regulations for large employers.
  • To help tackle the causes of the Gender Pay Gap, we have introduced Shared Parental Leave, and extended the right to request Flexible Working. We are also doubling the free childcare entitlements for working parents of 3 and 4 year olds, and we introduced Tax-Free Childcare from April 2017. In the 2017 Budget, we allocated £5 million to support returners who have taken a break from work. 

Race

  • The Race Disparity Audit was announced in August 2016 to look into racial disparities in public services stretching right across Government. The report will be published later this year. It will highlight the differences in outcomes for people of different backgrounds in every area from health to education, employment to welfare, skills and criminal justice.
  • The Government welcomed Ruby McGregor-Smith’s review of 'Race in the workplace', and we are working with Sir John Parker, Chairman of Anglo American Plc., to improve the ethnic diversity of boards by 2021.

Tackling the gender pay gap and discrimination is listed as a non-legislative initiative.


You can find the background notes that accompany the Queen’s Speech here.