A GOVERNMENT PAY TRANSPARENCY PILOT ABANDONED

The government has confirmed it will no longer be piloting a Pay Transparency scheme, aimed at reducing pay inequality.
 
Originally announced on 8 March 2022 – International Women’s Day – with the Government stating it was “leading the way”, the pilot scheme would have required employers to list salary details on job adverts and stop asking candidates about their salary history. The thinking was that, if candidates (especially women) are asked about current salary and salary history, that will inevitably influence job offers and keep salaries repressed. And how is past salary relevant to a new job anyway?
 
The aim was to enable women to negotiate their salary for a new job on a fairer basis, rather than remain forever on a lower trajectory than male counterparts due to historically lower pay (which in many cases may have been unlawful). That sounds like a laudable objective and there was significant publicity at the time of the initial announcement, with then Minister for Women, Baroness Stedman-Scott stating:
 
“The UK can only grasp its full potential by championing its brightest and best, and ensuring everyone, regardless of their background, has the opportunity to succeed.

We believe that increased pay transparency will build on positive evidence of the role information can play when it comes to empowering women in the workplace. It is essential that we keep women at the forefront of the levelling up agenda as we recover from the pandemic and rebuild together.”
 
As recently as 6 March 2024 the Government was still backing the pilot with current Minister for Women, Maria Caulfield stating:
 
“One of the things we are doing is a pay transparency pilot, because it also disadvantages women when pay bands are not advertised and they have to go in to negotiate what they think might be on offer—and men tend to be much better at that."
 
Fast forward two and a half months and the whole project (which arguably never really got off the ground) has been abandoned, or “paused” according to a letter of 17 May 2024 from the Minister to the Chair of the Women and Equalities Committee, Caroline Noakes.
 
The letter indicates the rationale for the apparent U-turn by asserting:
 
“We have always been clear that Government policy should be evidence-led. As you will know, pay transparency is still an emerging area, and we do not yet know whether there could be unintended negative impacts. We are aware that several countries are exploring legislative options, and therefore believe it makes sense to first learn from their experience, before taking any further action.
 
As you know, there are many competing demands for activity across the equality portfolio. Conscious of the best use of resources, the Minister for Women and Equalities will ensure that efforts are focussed on those areas of work where there is a clear unjust disparity.”
 
So much for “leading the way”! Caroline Noakes for one is unimpressed and commented:
                
"It is disappointing to learn that, two years after announcing the plans on International Women’s Day, not only has the Minister for Women and Equalities failed to deliver the promised pilot, she is now abandoning those plans altogether.

"In 2022, the Government noted that evidence supported the need for the pay transparency pilot, only a few weeks ago the Minister for Women and her officials told my Committee of the importance of the pilot. We are now expected to believe that not only is there not enough evidence to support the need for a pilot on pay transparency but that women being paid less than their male colleagues to perform the same role is not a clear unjust disparity. Rather than lead the way on reducing the gender pay gap and giving women a chance to break out of the cycle of low pay, the Government has instead chosen to sit on its hands and do nothing. I urge the Government to reconsider."
 
Ouch! Given that a General Election was called just 4 days later one might question both the timing and whether announcing the abandonment of the project was really necessary, but we’re interested in your views on the actual decision.
 
Do you think pay transparency is a good idea?
 
How does it work in your organisation?
 
What “unintended negative impacts” do you think the Government is concerned about?
 
And is the Minister right to imply that there’s no clear unjust disparity to be tackled by pay transparency?
 
Answers on a post…