Minoritised Women: Pay Inequality

Baroness Chakrabarti Excerpts

Tuesday 19th September 2023 Lords Chamber

[Baroness Williams of Trafford (Con)]

My Lords, mandatory reporting sounds like the perfect situation, but actually if you look into the granularity of it, as I just spoke about, it can actually be a bit of a blunt instrument that misses certain things: locational differences, regional pay differences and, as I said, there are differences within ethnicities themselves. The gender pay gap was a very simple binary reporting system, because we are talking about two groups. Ethnicity pay gap reporting involves maybe up to 19 groups, which makes it much more difficult, and for firms with small numbers it is less informative than one might think. The guidance that my noble friend was talking about was published on GOV.UK on 17 April and we have promoted it through employer engagement, including asking employer representative bodies to promote it through their networks.

[Baroness Chakrabarti (Lab)]

My Lords, it is 50 years since we introduced equal pay law in this country and we are nowhere near equal pay, not just for minority women but women in general. When we care about regulation in a modern, democratic economy, whether it is health and safety standards, food standards or school standards, we give a state agency some responsibility both for monitoring, given the granularity issues the noble Baroness referred to, and enforcement. Is it not high time, as we approach 55 years of this equal pay principle, that we gave an agency such as the Revenue some responsibility for monitoring payroll and enforcing equal pay?

[Baroness Williams of Trafford (Con)]

My Lords, that is quite complex, in the sense that some organisations have done it and done it very well. I recall doing it back in the day when I was a local authority leader. Some have been less good about it. Of course, equal pay discrepancies can be brought into scope, but I remain to be convinced about handing it to another agency.