Gender pay gap is getting worse in nearly half of firms, analysis suggests, as critics say forcing firms to report is not enough

Hundreds of women gathered in Russell Square for the Women's Strike Assembly on International Women's Day last year - In Pictures
Hundreds of women gathered in Russell Square for the Women's Strike Assembly on International Women's Day last year - In Pictures

The gender pay gap is getting worse in nearly half of companies, new analysis suggests, as critics say forcing firms to report their disparity is not enough.

Four in ten private companies that have published their latest gender pay figures have reported wider gaps than last year, according to the BBC.

The snapshot data takes a look at the median pay gap in each company - the difference between the middle-earning man and middle-earning woman, and has already been declared by some 1,146 companies ahead of the April 4 deadline for the private sector.

This represents around 10 per cent of employers who are legally required to declare their gender pay gap, but critics have warned that simply publishing figures does not eliminate the root causes of the problem.

Companies who have seen their gender pay gap widen include NPower and Kwik Fit.

The car servicing and repair company saw a swing of nearly 30 per cent towards higher male pay, which the company blamed on a number of senior staff leaving their jobs.

While last year, the gap was 15.2 per cent in favour of women, this year those figures are skewed towards male employees, with the average man earning 14 per cent more than the average woman.

A spokesperson said: “We are keen to both promote from within the company as well as recruit more women to help redress this balance.”

The data also shows that the pay gap at energy firm Npower has increased from 13 per cent to 18 per cent in the last year.

“Npower Limited implemented a cost reduction programme in 2017, which, along with the trend of more women than men taking advantage of salary sacrifice employee benefits designed to promote flexible working, had an impact on the pay gap,” said a company spokesperson.

But critics say that more needs to be done to make sure companies have a plan to reduce these pay disparities.

Rebecca Hilsenrath, Chief Executive at the Equality and Human Rights Commission, said: “Transparency is brilliant and the first year of gender pay gap reporting has had an immense impact in raising awareness of workplace equality.

“But the truth is that transparency is not enough.

“Just reporting figures is not going to eliminate anyone’s pay gap.

“Now that employers have met their legal duty to report their pay gaps, they should have worked out what has caused them and what they need to do to narrow them.

“We believe that it should be mandatory for employers to publish, alongside their pay gap data, action plans with specific targets and deadlines.”

Sam Smethers, Chief Executive of the Fawcett society echoed those views, and told the Telegraph: “Initial findings look worrying with 40% of those who have already reported showing pay gaps widening not narrowing.

“Women will be wondering what is going on. “We need to require employers to publish action plans that we can hold them accountable to.”

According to the BBC, of the companies that had reported their figures by Tuesday morning: 74 per cent had a pay gap in favour of men, 14 per cent had one which favoured women, while 12 per cent reported no pay gap.