Government backs gender gap pay audits

The government is to press ahead with plans to force large firms to disclose data on the gender pay gap among staff.

A consultation on the plans - introduced in the final months of the last coalition government - is to begin today.

The Prime Minister is expected to say the move will "pressure" firms into boosting women's wages, as he vows to eliminate the gender pay gap "within a generation" and that it will "cast sunlight on the discrepancies and create the pressure we need for change, driving women's wages up".

Labour welcomed the move, but said the government had been slow to act on pay transparency.

More than 10 million workers across the country will be covered by the new rules affecting outfits with more than 250 employees, which were a concession to the Liberal Democrats by the Conservatives in the final month of the coalition government.

At present the gender pay gap stands at 19.1% - meaning a woman, on average, earns around 80p for every £1 earned by a man.

Writing in the Times ahead of a speech to business leaders, Mr Cameron said he aimed to close the gap within a generation and said the compulsory National Living Wage for over 25s unveiled in last week's Budget would play an important part:

"Higher pay is something we want for everyone. That is why the Chancellor announced the National Living Wage, which starts next April at £7.20 and will reach over £9 by 2020. This will primarily help women, who tend to be in lower paid jobs. It will help close the gender pay gap.

"But we need to go further, and that's why introducing gender pay audits is so important."

More: Women 'to benefit from living wage', Treasury claims

Minister for Women and Equalities Nicky Morgan said she was "delighted" that the 25% target for female board membership - set in 2011 - had been met.

More: Budget 'to leave 13 million families worse off'