Gender pay gap two

Over the Summer the BBC, with a bang and probably a muffled whimper, released details of its highest earners. It predictably provoked outrage at the overpaid but also, less predictably, re-ignited the debate on the gender pay gap. Political leaders were quick off the mark to condemn the stark gap between male and female presenters. Theresa May criticised the BBC for paying women less for doing the same job as men and Jeremy Corbyn suggested a pay cap.

How Big is the Gender Pay Gap in the UK?

Measuring the gap is tricky. Here’s a summary from the ONS of some of the key figures for the UK in 2016:

  • Average pay for full-time female employees was 9.4% lower than for full-time male employees (down from 17.4% in 1997).
  • The gap for all employees (full-time and part-time) has reduced from 19.3% in 2015 to 18.1% in 2016 (down from 27.5% in 1997).

So the gap is nearly 10% or 18% depending how you measure it. This FOI request shows how the gap has altered in the past decade or so in the UK. The pay gap is high, and higher than the UK, in many other parts of the EU, where the UK sits about seventh from the top: ‘across Member States, the gender pay gap varied by 21 percentage points, ranging from 5.5 % in Italy and Luxembourg to 26.9 % in Estonia’.  To get some sense of the scale of the problem, in 2015 ‘women’s gross hourly earnings were on average 16.3 % below those of men in the European Union (EU-28) and 16.8% in the euro area (EA-19)’.

Gender pay

So what’s being done?

Something, finally. Successive governments have been determined to open up gender pay. Gender pay transparency is actually a Labour policy from long ago in 2010. Theresa May’s sound and fury has been heard before. Back in 2010 a certain Theresa May, writing in the Guardian no less, already claimed she was ‘clearing a path towards equal pay’ in 2010.What she forgot to say was that the Conservative-Liberal coalition she was part of didn’t actually engage the requirement to publish gender pay, contained in section 78 of (Labour’s) Equality Act of 2010. They wished to pursue a ‘voluntary scheme.’ Alas, few volunteered. Four years into the scheme only 4 companies had reported.

David Cameron, in a second wind of revolutionary ardour, committed to engage mandatory reporting (5 years after not doing so). This would ‘eradicate gender pay inequality’. All companies over 250 employees would have to publish the data. As of April 2017 companies have a year to produce the data and a written statement explaining, if there is a gap, what action will be taken. After 2018 organisations not publishing will be contacted by the Equalities and Human Rights Commission. The light of transparency will, it is hoped, end pay inequality.

How’s it going so far?

Although a number of companies have been voluntarily publishing the data, as of May 2017 only 7 companies had reported. An email from the GEO from July informed me there were now 26 and, according to a spreadsheet on data.gov.uk, there are now 40.

That’s from an estimated 7,000 companies with 250 or more employees. On a very generous rounding up, that means only 0.57% companies have reported. At this rate, if the Equalities and Human Rights Commission must send out notices next April, they’d better fire up the old email wizard or buy plenty of stamps.

There is also concern over the coverage of the policy, as this paper argued:

Only around 6000…of the 4.7 million businesses in the UK have more than 250 employees. Thus, around 59% of employees would be unaffected by the provisions if reintroduced in their current form.

The government calculated that the pay gap reporting would cover 34% of businesses with a further 12% covered by regulations for public bodies, meaning ‘approximately 8,500 employers, with over 15 million employees’ would be opened up.

The Women and Equalities Select Committee argued that the data needed to be broken down by age and status, and applied to companies with less than 100 employees-moving to 50 in the next two years (the government argued smaller businesses may find it ‘difficult to comply due to system constraints’). May appeared to promise further action on gender pay before the General Election and there was a mention of more data in the manifesto but, like much in that doomed document, we’ll probably never know what, if anything, was intended.

What will publication do?

On a practical level much may depend on how the data is published and who accesses or uses it. Underneath this is a serious question for all transparency policies: what exactly will publication do? While opening up such data is useful, measuring gender inequality is highly complex and a ‘moving target’ and is caught within wider issues of female representation in public life, professions and boardrooms. There is a long way between publishing data on a problem and ‘eradicating’ it.

In the case of the BBC, the controversy has led to a letter and high profile lobbying but will it lead to real change? Tony Hall has set a deadline for action (2020) and promised representation and consultation. There is now an external audit underway and something ‘pretty big and dramatic’ is planned that is going to be ‘open, transparent and independent’.

The former Secretary of State for Equalities spoke of how publication of gender pay gaps would have benefits in terms of ‘transparency, concentrating the mind and helping people make employment decisions’, all of which are either a bit tautological (transparency will make everything more transparent) or vague. More worryingly, a survey for the Young Women’s Trust found that many business were unconvinced ‘44 per cent of those making hiring decisions say the measure introduced last April will not lead to any change in pay levels’. In the 2016 the Women and Equalities Select Committee concluded that pay publication focuses attention on the issue but is not a solution: ‘It will be a useful stimulus to action but it is not a silver bullet’ and recommended that ‘the government should produce a strategy for ensuring employers use gender pay gap reporting’.

As the committee put it, openness is ‘a first step for taking action rather than an end in itself’. It is hoped that publication could drive up pay and standards-though the evidence of what publishing pay generally does is rather mixed (publishing executive pay appears to push overall pay up not down). Companies could be embarrassed into action but could, equally, ignore it, wait for the storm to blow over or kick it to the long grass with a consultation.

As with all sorts of openness, mandating publicity is only the start. Gender pay data must not sit on a spreadsheet but needs to wielded, repeated and find a place as a staple, symbolic benchmark-and become, like the ‘scores on doors’ restaurant star rating, a mark of quality or reason to avoid.

Images from UK government equality report and EU gender pay gap pages

CameronED

Promises of transparency often come back to haunt politicians. There’s an ever present danger that anyone promising or championing openness will, at some point, be hoisted by their own petard.  David Cameron is currently finding this out over his tax affairs.

In the US candidates and office holders regularly publish their tax returns as a matter of course, as well as their medical check-ups (except, it seems, Donald Trump). You can see Hillary Clinton’s returns here and Bernie Sander’s (possibly not complete) ones here. Details of Obama’s falling income are on the White House website and you can see Reagan’s, Nixon’s, Truman’s and some of FDR’s on the great Tax History project site.

The tax and financial affairs of political leaders in the UK are a little less automatically public. This is fortunate for them, as many Prime Minister’s financial affairs have been rather questionable, less in law than in what it tells us about them, from the tangled finances of Lloyd George to Winston Churchill’s hand to mouth existence and vast spending (not to mention Tony Blair’s post office money making).

However, the tax affairs of politicians became a bigger issue in the 2012 London Mayoral Campaign, when Labour candidate Ken Livingstone was attacked for his arrangements. It cropped up again in this year’s contest when Zac Goldmsith released his returns following allegations of his non-dom status. It’s also become a little more common for senior politicians to publish and be damned-you can see Labour Chancellor John McDonnell’s returns here.

Cameron’s particular difficulties are not legal, as he has done nothing against the law, but rather presentational. First, in 2012 Cameron very clearly promised to publish his returns and was ‘said to be relaxed and happy’ about it-conveniently just when Ken Livingstone was having difficulties (though perhaps too relaxed as by 2015 they still weren’t published with no plans to do so). The media have been handed a very obvious promise to work with-and it seems now Cameron’s returns will be published very soon.

Second, he has made a very high profile bid to tackle tax evasion through Beneficial Ownership, and spoken out repeatedly against tax havens, not once but three times in this speech at the OGP summit in 2013, in his letter to all British Overseas Territories and Crown Dependencies in 2014 and his berating of tax havens again in 2015.  He also criticised various people involved in various types of evasion, including comedian Jimmy Carr and Take That (though he let Gary Barlow keep his OBE). More generally, in 2010, he promised ‘a transparency revolution’ and to make ‘our government one of the most open and transparent in the world’. This, of course, opens him up to charges of hypocrisy and double standards.

Finally, Cameron came close to falling into what you could call the Lyndon Johnson trap of being made to publically deny something. He spent 4-5 days appearing to evade full answers to questions about his tax, perilously close to Alastair Campbell’s seven day survivability test. It’s possible a full answer Sunday or Monday would have put it to rest, or at least made it look less worse.

So Cameron’s promises have come back to haunt him. YouGov shows his ratings have slipped to 2013 levels (and Ken has got his revenge by calling on him to resign and be sent to prison). He joins a long list of leaders from Woodrow Wilson to Tony Blair and Barack Obama who got trapped in their own transparency promises. He probably wishes he had been a little less open about being open.

The UK government is committed to leading the world in openness. As part of the push to transparency, all English local councils have been asked to publish all their spending over £500 online on a monthly basis. These ‘swift and simple changes’ could ‘revolutionise local government’ and ‘unleash an army of armchair auditors’, with citizens analysing the data and holding their local councils to account.

For the last year I’ve been researching the impact of the publication, using a combination of surveys, FOI requests and interviews. I’m asking whether making this new financial information available has had an impact: are members of the public using the new information to make local government more accountable? Do they to participate more in local politics? Do they understand more about their local council?

The evidence to date shows a limited number of people are looking at the information. A mixture of journalists, local activists and a few citizens are using the data to hold councils to account and there have been some stories in the local press and the national press. There are a few armchair auditors appearing around the country such as here and here (especially, as Eric Pickles pointed out, inBarnet) but it takes time, resources and interest –something not many of us have.

There are obstacles. The data itself isn’t as informative as it could be, and it can’t yet be compared with other councils or give a full picture of what is being spent and how (see your own local council site-mine is here). Some councils are not convinced that the public will spend their time looking through spread sheets. When you contact your council it’s generally for amenities or services-bins or planning-rather than spending.

To make it more complicated the spending data is also very political: it isn’t clear exactly what the government wants to see and they are sending out ‘mixed messages’. Some feel the information, at a time of severe cuts, is intended to make councils look like reckless spenders or wasters.

The lack of use and obstacles does not mean the reform has failed. Far from it. Councils can see the benefits of all this information for both citizens and for themselves. It is very early days and the real changes will arrive when new applications such as Openly Local orapp.gov (still in development) allow you to quickly search the data, compare spending with other councils and join it up with other ‘local’ information. In the future, local councils could have applications that combine their spending data with local information in the style ofTheyWorkForYou or the Open Data Communities hub.

This post originally appeared on the ODI website. You can see here my written and oral evidence on Open Data to the Public Administration Select Committee.

If you are interested or would like to help with my research please contact me on b.worthy@bbk.ac.uk