20th Century

The Gender Pay Gap and Gender Inequality in Modern Britain | Maria Neagu

The UK Parliament has enacted several statutes in place to guarantee equal pay for women. The first of these was the Equal Pay Act (1970) and the Sex Discrimination Act (1975). These laws have been reinforced by the Minimum Wage Act (1998) and the Equality Act (2010), to ensure that all workers are treated fairly and equally regardless of gender and, in the case of the latter, disability, age, sexuality, sexual orientation, pregnancy, and gender reassignment.

Barbara Castle, MP

We shall focus here on the gender pay gap which remains statistically significant in this country—the difference between men and women’s hourly earnings—data for which is collected annually in the UK by the Office for National Statistics (ONS). The most recent data shows that the gender pay gap for all full-time workers in the UK stands at 7.0%.  Although this is a notable improvement from what was the state of affairs in the last century, more work is needed to ensure that women receive equal pay for when doing the same job as a man.

The history of women’s fight for equality

The fight for women’s equality in Britain began at least 200 years ago. In A Vindication of the Rights of Woman (1792), Mary Wollstonecraft advocated for female liberation and fought against societal expectations for women to only aspire to marriage, which she believed was degrading and limiting. Wollstonecraft argued that women should be allowed to develop their minds and virtues through proper education and the freedom to pursue their goals. She believed that this would enable women to find fulfilment in careers other than marriage and avoid being forced into prostitution. Wollstonecraft concluded that once women were given the freedom to pursue their own goals, they would rapidly gain wisdom and morality, and her radical community hoped that France would experience this liberation.

Patriarchy

Essentially, Wollstonecraft’s book was an argument against patriarchy. Patriarchy is a social system in which men hold more power and privilege than women. This dominance can be seen in individual families, where men often carry the head of the household, and in broader societal structures, such as government and business, where men have the majority of leadership positions.

Mary Wollstonecraft by John Opie in 1797 (Wikimedia Commons)

The patriarchal system has a profound impact on women’s rights in a multitude of ways. In societies that adhere strictly to patriarchal values, women and girls often face limited access to education, which can adversely affect their overall health, economic prospects, and well-being. Furthermore, patriarchal values usually perpetuate violence against women, discriminatory laws, and harmful cultural norms, which can significantly restrict women’s autonomy and rights.

Women in patriarchal societies also face significant challenges in terms of career advancement, personal growth, and education as rigid gender roles are enforced. Additionally, women in patriarchal societies may encounter economic barriers, such as limited access to credit, lower wages, and unpaid domestic labour, which can significantly limit their ability to participate fully in the workforce. Reproductive rights are also frequently restricted in patriarchal societies, with access to contraception, family planning, and safe abortion services being severely limited. Finally, patriarchal systems often impede women’s participation in politics and decision-making processes, resulting in underrepresentation in legislative bodies, executive positions, and leadership roles.

The Bryant and May girls on strike (Wikimedia Commons)

The Bryant and May Match Girls Strike

Wollstonecraft did not, however, say much about women’s pay and for a long period of time it was simply accepted that women would, indeed should, be paid less than a man. This did not stop women occasionally fighting for fairer working conditions, however. One of the earliest and most significant demonstrations in this regard was the Match Girls Strike, which took place in 1888 in London. Over 200 women and girls went on strike to protest against the unjust working conditions at the Bryant & May Match factory. The strike was successful and inspired other women to fight for their rights in the workplace.

The same year, the Trades Union Congress (TUC) passed a resolution urging employers to pay women the same wage as men for the same work. This was a significant step forward in the fight for equal pay and paved the way for further progress. The International Labour Organisation’s Equal Remuneration Convention in 1951 and the Treaty of Rome in 1957 were also instrumental in enshrining the principle of equal pay in international law. These global agreements set a standard for fair and equal treatment of workers, regardless of gender.

The Ford Dagenham Strike of 1968 (Workers’ Liberty)

The Ford Dagenham Strike

Despite the above, women in the UK were paid significantly less than men for many years. This was especially true during the Victorian era when women’s work was often considered less valuable than men’s. It wasn’t until the 1960s that significant progress was made towards equal pay for British women. In 1968, female workers at the Ford Factory in Dagenham, a suburb of London, discovered that they were being paid 15% less than their male colleagues despite doing the same work.

One of the most prominent figures to support the striking women was Barbara Castle, a Labour Party MP and Secretary of State for Employment. Castle recognised that the women’s cause was not just about their pay but also about challenging the systemic gender inequality that permeated society. Castle’s support for the women’s strike raised public awareness. She used her platform to advocate for equal pay and other social reforms, such as the requirement for drivers to wear seatbelts.

The Dagenham strike lasted for three weeks and gained national attention, leading to changes in the law. Although the strike did not result in the women receiving immediate pay increases, it pressured the government to act. In 1970, the Labour government enacted the Equal Pay Act, which made it illegal for employers to pay men and women different wages for doing the same work. The Equal Pay Act (1970) and the later Sex Discrimination Act (1975) made it illegal to pay men and women different wages for doing the same job. This was a significant step towards gender equality in the workplace, but more work needed to be done for although progress had been made towards achieving equal pay, more work needed to be done in this regard. Further acts would be necessary to enhance protections for women. The subsequent Minimum Wage Act (1998) played a role in addressing these issues.

The National Minimum Wage Act (1998)

The Minimum Wage Act of 1998 is a crucial law in the United Kingdom that ensures workers receive a fair wage for their labour. The legislation mandates that employers pay a minimum hourly wage rate, which varies based on the worker’s age and type of work. Regular reviews and adjustments to the minimum wage rate guarantee it stays current with the cost of living. Irrespective of their business size or industry, all employers must adhere to the minimum wage rate. Failure to comply may result in legal action and financial penalties.

The Minimum Wage Act of 1998 curtails employers’ ability to exploit workers by paying them less than they deserve. It establishes a benchmark for a fair wage, guaranteeing that workers are not subjected to underpaid labour. It also helps lower income inequality and poverty by ensuring workers receive a decent salary. In 1998, the UK Labour Government passed the National Minimum Wage Act after the Low Pay Commission recommended the introduction of a national minimum wage. This act significantly impacted the gender pay gap in the UK, as it was the second largest legislation-driven effect on the gender pay gap in the country. The introduction of this act has been instrumental in reducing the gender pay gap from 17.4% to 7.0%, providing a significant boost to women’s fight for equal pay. 

While the Low Pay Commission found that the introduction of the NMW benefited women more than any other group, the National Minimum Wage (NMW) policy has played a crucial role in addressing income inequality in the United Kingdom, particularly among men employed in low-paying jobs. Since its implementation, the policy has ensured that even the lowest-paid workers receive a fair wage for their work, which has helped alleviate (though not eliminate) the financial struggles many individuals and families face.

The Equality Act (2010)

The Equality Act (2010) is a comprehensive law that aims to promote and protect equality of opportunity for all individuals in the UK. It replaced several previous anti-discrimination laws and provided a unified framework to tackle discrimination, harassment, and victimisation based on nine protected characteristics, which are age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. These characteristics are protected in all areas of life, including employment, education, healthcare, housing, and goods and services. The Act also requires public bodies to promote equality of opportunity and eliminate discrimination in their policies and practices. They must conduct equality impact assessments to identify and address any potential adverse effects their policies and practices may have on people with protected characteristics.

The Equality Act further bolsters equal pay and enshrines the right to equal pay for equal work between men and women. The Act also includes a sex equality clause that automatically applies to all employment contracts, ensuring that women’s contractual terms are no less favourable than men’s. Public bodies have been required to publish their gender pay gap data under Schedule 19 of the Equality Act 2010 since its implementation. In 2017, Prime Minister Theresa May introduced mandatory pay gap reporting for private organisations employing 250 or more individuals. 

Gender Pay Gap Reporting

Companies with 250 or more employees in the UK must publish their gender pay gap statistics annually. This report should include the median and mean hourly pay rates for male and female employees and the proportions of male and female employees in each quartile of the company’s pay distribution. Employers can also provide a written statement explaining the reasons for gender pay gaps and outlining the steps they plan to take to address any disparities. These regulations are aimed at promoting transparency and accountability within the workplace and encouraging employers to take action to reduce gender pay gaps. As we have seen, the gender pay gap among full-time employees stands at 7%. This represents a slight decrease from the figure of 7.7% recorded in April 2021 but is certainly lower than the 9.0% reported in April 2019 before the outbreak of the COVID-19 pandemic. While these figures provide a snapshot of the current situation, it’s worth examining a modern company’s statistics and reading between the lines to understand the issue more deeply.

Tesco, a major UK retailer, reported their 2023 gender pay gap figure as 8.78%, a 1.04% improvement from 2022. At the time this was better than the national average of 9.6%. According to Tesco, there are two primary reasons for their gender pay gap. Firstly, the company has fewer women in senior positions than men. This means that more men are occupying top-tier roles and receiving higher salaries. Secondly, the company recognises that lifestyle choices play a role in the gender pay gap. For example, women may take time off work for maternity leave or work part-time to balance family responsibilities, which could result in lower pay. Tesco acknowledges these factors and is committed to addressing the gender pay gap and promoting gender equality in the workplace.

A multifaceted analysis

Despite efforts towards gender equality, studies show that women continue to earn less than men in many industries and countries have led organisations such as the Fawcett Society to campaign for more robust legislation that would require employers to disclose the salaries of their male colleagues, enabling women to negotiate fairer wages and hold employers accountable for any discriminatory practices. The Fawcett Society campaigns continually because the gender pay gap persists because of various factors such as discrimination, unconscious biases, and lack of transparency in salary negotiations and promotions.

Additionally, women are more likely to work in low-paying jobs with fewer opportunities for advancement, and they often take time off from work to care for children or elderly relatives, which can affect their career progression and earning potential. Overall, addressing the gender pay gap requires a multifaceted approach that involves policy changes, cultural shifts, and individual actions towards creating a fairer and more equitable workplace.

When it is difficult to determine what is happening, women often respond by turning inward. Rather than speaking out or acting, they may adopt a more formal and professional communication style. They may also work harder or put more effort into drawing attention to their achievements. While these strategies may help women navigate discrimination in the short term, they do little to create lasting change or to promote gender equality in the long run.

The problem with those strategies is that they do not address the root causes of gender inequality. Women cannot challenge the systemic barriers and biases that prevent them from achieving equality by focusing on individual behaviours and actions. To truly create change, it is necessary to address the underlying social and cultural factors that contribute to gender inequality. This means that women must speak out and act when they encounter discrimination or bias. They need to hold individuals and institutions accountable for their actions. Additionally, men and other allies need to become actively involved in promoting gender equality.

Gender inequality is a persistent issue in our society, and it can manifest in various forms. While there are several reasons for this inequality, a few key factors contribute to it: Firstly, companies often don’t want to invest in resources to carry out audits to ensure gender equality in the workplace. This can include conducting salary audits, analysing promotion rates, and addressing any disparities in opportunities for male and female employees. Secondly, employers aren’t always transparent about their hiring and promotion practices, which can create an environment where gender biases go unaddressed. This can lead to a lack of diversity at all levels of the organisation, including leadership positions.

Thirdly, there are traditionally male-dominated professions, such as engineering or finance, and others that are female-dominated, such as teaching or nursing. This can create a self-perpetuating cycle where men are more likely to get hired and promoted in (better paying) male-dominated fields, and women are more likely to get hired and promoted in female-dominated fields.

Finally, there can be issues with the statistics themselves. According to one author, J. Jessop, writing in 2018, the gender pay gap reporting system in the UK is failing as the data are frequently misunderstood and misrepresented. Variations in hourly wages or bonuses between men and women are often misinterpreted as evidence of different pay for the same work. The government is encouraging firms to report aggregate data in the form of ‘women earn x% less than men’, which reinforces the impression of discrimination. The raw data are too crude, and, so Jessop argues, the additional costs that come with gender pay gap reporting may make things worse by encouraging outsourcing and positive discrimination, among other things.

What is to be done?

The United Kingdom has strict laws that guarantee men and women receive equal pay for work of the same value. The Equality Act 2010 prohibits employers from engaging in discriminatory practices based on gender regarding pay and other employment conditions. Women must receive the same pay as men for the same job, and employers cannot offer different terms and conditions for men and women who do the same job. Yet the gender pay gap remains a complex issue in the UK. Factors contributing to the pay gap include occupational segregation, differences in education and career progression, unconscious bias, and caregiving responsibilities. We must continue to work towards eliminating discrimination in the workplace and ensure that everyone, regardless of their gender, has a fair and equal opportunity to succeed.

Several recommendations could be made to both the government and employers to address these issues, such as enacting new laws explicitly targeting gender pay inequality. The continued existence of the gender pay gap has led organisations such as the Fawcett Society to campaign for transparency legislation allowing women to know what their male colleagues earn. This would help women negotiate fairer salaries and hold employers accountable for discriminatory practices. Another suggestion would be employers offering paid time off for childcare responsibilities. Additionally, it may be beneficial to mandate full pay for women in all sectors during maternity leave or to increase Statutory Maternity Pay heavily. Finally, pay transparency laws could be introduced, allowing employees to access pay data for their immediate co-workers.

About the Author:

Maria Neagu is currently studying at Canterbury Christ Church University, enrolled in the Accounting and Finance program. Her academic interests center around the complexities and nuances of accounting, finance, and law. In her leisure time, she enjoys reading, traveling to new destinations, and immersing herself in captivating historical dramas.

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