Support 100 years of independent journalism.

  1. Politics
2 December 2010updated 27 Sep 2015 2:06am

The Liberal Democrats’ latest U-turn: equal pay

Theresa May to scrap compulsory gender pay audits, which Liberal Democrat manifesto promised to impl

By Samira Shackle

Liberal Democrat MPs are increasingly well-practised at eating their words. The latest reversal is over equal pay audits.

The Home Secretary, Theresa May, will announce later today that plans to force companies to disclose how much they pay men and women are to be scrapped. Instead, companies will be asked to narrow the pay gap – one of the worst in Europe – through voluntary efforts.

It comes as no surprise that a Conservative-led government has opted to scrap this clause in the Equality Act – it is unpopular with big business. But it does fly in the face of a Liberal Democrat manifesto pledge to introduce fair pay audits for every company with more than 100 employees. This went further than Labour’s draft legislation, which limited the measure to companies with more than 250 employees.

It will also be a humiliating climbdown for the Lib Dem Lynne Featherstone, junior minister for equality, who said in June 2008 that the legislation did not go far enough:

Select and enter your email address Quick and essential guide to domestic and global politics from the New Statesman's politics team. A weekly newsletter helping you fit together the pieces of the global economic slowdown. The New Statesman’s global affairs newsletter, every Monday and Friday. The New Statesman’s weekly environment email on the politics, business and culture of the climate and nature crises - in your inbox every Thursday. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A newsletter showcasing the finest writing from the ideas section and the NS archive, covering political ideas, philosophy, criticism and intellectual history - sent every Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.

A voluntary audit system for private industry is hardly worth the paper it’s printed on. We need to know when the government actually plans to step in if progress isn’t made.

The government’s failure to grasp the nettle of private-sector pay will provide little comfort to the enormous numbers of people who are still being discriminated against in the workplace.

Featherstone has not issued a statement in the response to the new move.

Not only is this an about-turn for the Lib Dems, it is a huge step backwards in the fight to equalise pay. Women in the UK earn, on average, 21.4 per cent less than men. A recent study estimated that, at the current rate of change, pay would not be equalised until 2067. It is clear that we need to take positive action to speed this process along.

Gender equality groups such as the Fawcett Society have consistently pointed to the UK’s culture of secrecy around pay as one of the reasons that the gap persists. In Sweden, when transparency measures were introduced, the gender pay gap has narrowed greatly.

Speaking to the Financial Times this year, Harriet Harman explained the thinking behind the compulsory audit:

It is all too easy for people to say there is unfairness in pay but not here, and it is very important – knowledge is power – for people to see the pay gap in their workplace.

Though the voluntary measures that will replace gender pay audits have not yet been spelled out, it is probably safe to assume that the bite has been taken out of the act altogether.

Topics in this article :