10/11/2005

Minister welcomes reduction in gender pay gap

Minister for Women Tessa Jowell has today welcomed a narrowing in the gender pay gap.

Commenting on figures from the Office of National Statistics (ONS) Mrs Jowell said: "It is excellent news that the gender pay gap is now at its lowest level in 30 years since the introduction of the Equal Pay Act.

"In 1975, women earned 70p for every £1 a man received, while today women receive 83p.

"The pay gap has fallen from 17.4% in 1998 to 13.2% in 2005. Women now earn an average of £9.82 an hour and men £11.31 an hour.

"But there is obviously still more to be done. This shows that government policies to address the reasons why the pay gap has existed for so long are working: the minimum wage, flexible working, and better maternity and paternity leave.

"But there is no room for complacency; we must close the pay and skills gap further to ensure women have higher lifetime earnings and higher pensions.

"Our next step will be to take forward the recommendations from the Women and Work Commission's Report, which we look forward to receiving in January."

The figures revealed that the mean gender pay gap has fallen from 30% in 1975 to 17.2% in 2005; there were no median comparisons prior to 1975.

The stronger growth in full-time women's hourly earnings excluding overtime compared with men's has meant that the gender pay gap has reduced to 13.2%, down from 14.5% in 2004. This represents a narrowing by 1.3%.

The narrowing of the gap was partly attributed to an increase in the proportion of women working in higher paid occupations.

The latest figures from the ONS revealed that in April 2005 median gross weekly earnings were £431, up 2.8% from £420 in 2004, for full-time employee jobs on adult rates whose earnings were not affected by absence.

Median full-time earnings for men on adult rates whose earnings were not affected by absence were £472, up 2.5%, compared to £370 for women, up 3.9%.

Median gross weekly earnings for all employee jobs were £337, up 3% from £327 in 2004.

Between 2004 and 2005 the weekly earnings for full-time employees of the bottom ten per cent grew by 2.3% compared to a growth of 4.4% for the top ten per cent.

Median gross hourly earnings excluding overtime were £10.68, up by 3.2% from £10.36 in 2004 for full-time employee jobs on adult rates.

(SP/KMcA)

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