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The law requiring large employers to report their gender pay gap should be extended to smaller companies, a think tank is urging.
The law should also include pay differences affecting gender, ethnicity and disabilities, argued the IPPR.
Thousands of firms have complied with the new rules, and four out of five large employers have considered or taken action to narrow gender pay inequalities, said the IPPR.
Joe Dromey, IPPR senior research fellow, said: “Gender pay reporting has been a big success. Transparency has driven the gender pay gap up the agenda, and it is spurring employers to act.
“We should build on this success with a radical extension of pay transparency. Broader transparency on gender, ethnicity and disability would help drive employer action to tackle these burning injustices.”
Rachel Reeves MP, who chairs the Business, Energy and Industrial Strategy Committee, said: “Gender pay reporting has been crucial in shining a light on male dominance of the highest paid sectors of the economy and the best paid jobs within each sector.
“Widening the reporting requirements, such as by requiring businesses to produce an action plan for closing their gender pay gap and requiring the publication of internal pay ratios, could play an important role in driving change.”
Jo Swinson, deputy leader of the Liberal Democrats, said: “Gender pay gap reporting has shown that what gets measured gets done.
“More and more senior leaders are waking up to the reality in their organisations and taking action, but we can do more to speed up progress.”
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