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Business
Jonathon Manning

North East gender pay gap gets worse as 55% of firms see divide widen

The North East gender pay gap in the first year since larger companies were forced to publish data, with the average female employee being paid 11.3% less than male colleagues.

Data analysed by ChronicleLive found that 305 North East businesses have submitted their gender diversity statistics for the 2018/19 financial year, with women being paid on average 11.3% less than men.

In 2017/18 the wage gap for the North East was 10.7%, although the difference can in part be attributed to more companies reporting pay information this year.

Of the 173 businesses who contributed to both year’s figures, 96 reported a widening pay gap in favour of men. That means 55% of firms in the region have seen their pay gap grow.

The education sector continued to have some of the largest gender pay gaps in the region, largely caused by men making up the majority of senior positions within school trusts.

TUC General Secretary Frances O'Grady (Daily Mirror)

Among the 10 organisations with the largest pay gap in favour of men, five of them were school trusts, with the Dayspring Trust - which runs two Church of England Academy Schools - found to have the largest pay gap in the North East at 66%.

All employers with more than 250 staff had until midnight on April 4 to report their gender pay details or face legal action, including fines.

Across the country the gender pay gap has continued to grow, sparking anger from many equal pay campaigners.

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TUC general secretary Frances O’Grady said: “Big employers clearly aren’t doing enough to tackle the root causes of pay inequality and working women are paying the price.

“Government needs to crank up the pressure. Companies shouldn’t just be made to publish their gender pay gaps, they should be legally required to explain how they’ll close them, and bosses who flout the law should be fined.”

Carolyn Fairbairn, director general of the CBI, said businesses cannot close the gap by themselves, adding: “Many of the causes lie outside the workplace including a lack of affordable, high-quality childcare and better careers advice.

“Companies and Government working together remains the best way to deliver the long-term, lasting change that’s needed.”

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Women and Equalities Minister Penny Mordaunt, said: “Actions to tackle the gender pay gap are good for business. That’s why we have produced support to help employers close their gaps.

“We recognise that in order to close the gap entirely we still need a much wider cultural change, that is why we have introduced a range of initiatives to tackle the drivers of the gap, including shared parental leave and spending around £6bn on childcare support.”

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