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What is the gender pay gap, where do statistics come from and is it illegal to pay women less than men?

The gender pay gap is once again in the public eye

The gender pay row has been thrust into the public eye once again.

But what exactly is the gender pay gap and who is most affected? Here's all you need to know.

 Large businesses are required to report their gender pay gaps as of April 6 2017
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Large businesses are required to report their gender pay gaps as of April 6 2017Credit: Getty Images

What is gender pay gap reporting?

The gender pay gap is still an issue around the globe, and , it won’t close until 2186.

The European Commission has said the wage gap is the result of factors including education choices, job preference, work experience, breaks in employment, women's lower willingness to negotiate salaries and discrimination.

The Equal Pay Act was introduced by the UK Parliament in 1970 in a bid to combat the divide and was superseded by the Equality Act in 2010.

But on average women still earn about 18 per cent less per hour than men.

This is an improvement, down from 28 per cent in 1993 and 23 per cent in 2003, but campaigners argue there is still a  long way to go.

Large businesses are required to report their gender pay gaps as of April 6 2017.

Companies with over 250 employees must publish the gender pay and gender bonus data of both males and females on the pay roll.

The government said the new law was part of a longer term scheme to support women in the workplace, including investing £5m to help parents return to work, providing 30 hours of free childcare, and introducing shared parental leave.

Women's rights group Fawcett Society said they "strongly welcome" the gender pay gap reporting legislation.

Where do the statistics come from?

According to the Office for National Statistics, the gender pay gap is at its lowest for those working in sales and customers services, with just 4.3 per cent difference between men and women.

It is similarly low in administrative and secretarial roles at 5.6 per cent.

However it is at its highest for those working in skilled trades where women are paid on average 24.5 per cent less than men in equivalent positions.

A tool, based on government data, allows employees to see find out the gender pay gap for their job.

It comes as the BBC revealed that two-thirds of its top-earners are men.

Gender pay gap for full-time workers by occupation

All employees: 9.4per cent

Skilled trades: 24.5pc

Process, plant and machine workers: 21.4pc

Managers, directors and senior officials: 18.9pc

Elementary occupations: 13.5pc

Associate professional and technical occupations: 11.2pc

Professional occupations: 11pc

Caring, leisure and other service occupations: 8.1pc

Administrative and secretarial workers: 5.6pc

Sales and customer service occupations 4.3pc

Figures: Office for National Statistics.

What new changes are ahead?

From March 2018, all organisations in the UK with more the 250 employees will have to report their gender pay and bonus gaps as part of new legislation.

The changes come off the back of the BBC pay row and will force many large corporations in the UK to overhaul their own pay structures.

The new legislation comes as ministers face a parliamentary inquiry into how they will implement tough new EU rules on equal pay after Brexit.

An influential group of MPs has warned the government that it has not provided answer as to what will replace the proposed EU-wide monitoring systems once Britain exits the EU.

Equality campaigners say the government must not be allowed to use Brexit as a means to “wiggle out”  of its commitments and have called for the issue to be examined in depth.

Is it illegal to pay women less?

For 47 years, it's been illegal to pay men and women different rates for the same job.

So why is there such a big gender pay gap?

Equality charity  believe a variety of different factors have contributed to the inequality.

They claim: "There's no one cause of the gap - important factors are discrimination, undervaluing roles predominantly done by women, dominance of men in best paid positions and unequal caring responsibilities."

In October 2017, Theresa May urged small firms to publish details of gender pay in a bid to close the gap. 

The Prime Minister said a “step change” was needed, following news that large companies will be required to release this information by March 2018.

Why did former BBC editor Carrie Gracie quit her role?

The corporation's China Editor quit her post after accusing bosses of "breaking equality law by paying women less for the SAME job."

Carrie Gracie slammed the BBC for its "secretive" pay structure and describe it as "illegal".

In an open letter, she said the BBC was facing a "crisis of trust" after it was revealed more than two-thirds of its stars earning over £150,000 were male.

While she stepped down from the senior post, she remains at the corporation and has returned to her previous role in the newsroom.

Her opinion on the pay gap was mocked by presenters Jon Sopel and John Humphreys, with the exchange caught on tape.

The duo, who are the corporation's highest-paid journalists, described their exchange as "silly banter between old mates" but was described as "ill-advised" by BBC bosses.

Audio of Radio 4 Today host John Humphrys and Jon Sopel joking about the gender pay gap
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