London’s Pay Gap Goes From Best to Worst


    In the United Kingdom, London has the largest gender pay gap as the average woman that is working full time earns 14.6pc less per hour compared to the average full-time man.

    The Office for National Statistics reveals that number compares with the 9.1pc on average across the United Kingdom, 6.6pc in Scotland and 6.3pc in Wales. Women that are working full-time in Northern Ireland currently earn 3.4pc more than men on average per hour.

    20 years ago, the capital had the smallest gender pay gap in the United Kingdom. However, it has stood still since then as the rest of the nation has improved.

    On the other hand, for part-time workers, women earn more than men for every hour worked in every region of the country, which was not the case two decades ago.

    According to the Chartered Institute for Personnel and Development’s Charles Cotton, this gap between London and other regions could be partly attributed to the mix of industries.

    Cotton said: “Over this period you saw a big expansion in the financial services sector which is historically a high payer and they tend to have a higher gender pay gap than other industries.

    “While one would hope they pay men and women the same for doing the same job, it can be harder for women, especially if they have got caring responsibilities, to advance up the job ladder in the financial services sector.”

    The director of strategy for the Chartered Management Institute, Petra Wilton, said that the gap is particularly regarded among senior staff member.

    Wilton said: “According to CMI research, the pay gap for managers in the financial sector stands at £18,000, or 34pc – far higher than the 27pc gap for managers across all sectors.

    “Far more men hold higher paying senior roles, with women occupying the majority of the lower-paid junior roles, creating a so-called ‘glass pyramid’.”

    Other regions in the United Kingdom may have closed the gap in part due to an effort throughout the turn of the century to locate more public sector jobs that are outside London. On the other hand, Wales, Scotland, and Northern Ireland, in particular, have a larger proportion of public sector jobs, which tend to have smaller gender pay gaps compared to the private sector.

    Cotton added: “If you are in an economy dominated by the public sector perhaps [private firms] feel compelled to copy what they are doing when it comes to equal opportunities and diversity inclusion.”

    The pay gap of Northern Ireland may be because of “changes in heavy industry, shipbuilding closing, the decline in manufacturing and security-related jobs which were predominantly male, and growth in the services sector and especially tourism which has attracted more women, and public services as well,” added Cotton.