There are almost four times more men than women in Britain’s highest-paid posts, according to “scandalous” figures that show the extent of the glass ceiling blocking women from top jobs.
Government data reveals the huge disparity in the number of men and women with a six-figure income, fuelling concerns over the gender pay gap in the City and other professions.
There were 681,000 men earning £100,000 or more in 2015-16, according to new HMRC data. It compares with only 179,000 women. The latest figures show that 17,000 men earned £1m in 2015-16, while only 2,000 women did so.
The findings provoked immediate concern from two former Tory cabinet ministers for women, Nicky Morgan and Justine Greening.
The data, released last week, also revealed a large gender gap in average earnings. Male taxpayers had a median annual income of £25,700; their female counterparts earned £20,300. The figures do not account for the fact that more women are in part-time and low-paid work, as those who do not earn enough to pay income tax are not included.
The data comes as the country’s biggest companies are forced to publish their payrolls by gender before April. Organisations with 250 or more workers must publish their figures, with many high-salary City firms among the worst performers. The gap in pay at Virgin Money is 32.5%, while asset management firm Octopus Capital has a 38.1% difference.
Several major firms had attempted to mask the full extent of their pay gaps by omitting company partners. Government guidelines state their salaries do not have to be included as they are paid a share of the profits, rather than being directly paid by the companies. However, under pressure from campaigners, some have now included partners, most of whom are male. The updated figures reveal that women earn 43% less than men at accountancy firm Deloitte. Fellow accountant EY, which originally reported a gap of 20%, published a revised gap of 38% once partners were included.
Following the release of the figures, Greening said: “These stark figures show how far our country still has to go on closing our gender pay gap. It represents not only a loss of career earnings for women, it also represents a loss of talent for employers.
“What counts now is companies taking action to close this gap. That means making flexible working laws actually work on the ground, enabling women to get on with their careers after, as well as before, starting a family, and it means more girls aiming for the high-paying careers in areas like engineering that have been male-dominated.”
Morgan, now the Treasury select committee chair, said the higher proportion of men than women in senior roles was “a key driver of the gender pay gap”. “Sunlight is the best disinfectant; sanctions may be necessary to ensure openness and transparency. Money talks, and perhaps more of the stick may eventually be needed to close the gender pay gap,” she said.
The dominance of men in high-paid posts has also seen them reap most of the benefits of recent tax cuts, according to research by the Women’s Budget Group, which monitors the impact of government policies. It has warned that the government’s pledge to raise the personal tax allowance to £12,500 will disproportionately benefit men, as 66% of those who do not earn enough to benefit are women. Meanwhile, men form 73% of those who would gain from raising the higher rate tax band to £50,000.
