01 UK GENDER PAY GAP | BDO LLP
Introduction
The UK Gender Pay Gap (‘GPG’) Regulations (‘the Regulations’) have been in place for six reporting years since 2017/18, including a year of voluntary reporting due to the COVID-19 pandemic. The Regulations stipulate that entities with over 250 employees in the UK on the relevant snapshot date are required to disclose several GPG metrics using a predefined methodology. When the UK first implemented the GPG reporting, it was seen to be pioneering, with the hope of instigating widespread change. Since then, other nations have followed suit and adopted regulations to address similar concerns. More recently, the European Parliament approved the EU Pay Transparency Directive, aimed at enhancing the principle of equal pay through various measures focused on pay transparency. Nevertheless, throughout the six reporting years in the UK, numerous voices have debated the intricacies of the methodology, often describing it as a ‘blunt instrument’ due to the lack of enforceability for non-reporting or late reporting, and most importantly, questioning the efficacy of the regulations to close the GPG. This year, BDO has undertaken some research to assess the progress UK entities reporting under the Regulations have made in closing the GPG. To do this, we have identified entities that have consistently disclosed GPG data for the totality of the period the reporting requirement has been in existence for (i.e., six years). We established that there were c. 5,300 entities that meet these criteria.
Participants by industry
Education Manufacturing Administrative & Support Services Health & Social Work Professional, Scientific & Technical Retail Public Services Financial Services Technology Transportation & Storage Construction Hospitality Arts, Entertainment & Recreation Real Estate Other service activities Energy Utilities
5.2%
Participants by number of employees Participants by number of employees
10% 15% 20% 25% 30% 35% 40%
0% 5%
Less than 250
250 to 499
500 to 999
1000 to 4999
5000 to 19,999
20,000 or more
Number of employees
X We have utilised data that was disclosed on the UK Government portal as of May 2023 X All industry data has been derived from each entities’ Standard Industrial Classification (‘SIC’) code X We have run some statistical analysis on the reported GPG figures for each respective entity. Please note that all averages are unweighted (i.e., regardless of the size of entities’ headcount).
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