PRESS RELEASE 26 October 2000

High percentage rises for low paid, but pay gap still huge

Today saw the release of the first official statistics on pay taking full account of the National Minimum Wage. As expected, the figures showed improvements in earnings of the lowest paid, although analysis by the Low Pay Unit shows that the pay gap between the richest and poorest is still growing.

• average earnings for women working full time increased by 3% compared to 2.1% for men, but still lagged behind men with average earnings of £338 compared to £453 for men;
• hourly earnings for women in manual jobs grew by 7.5%, but they still received £1.80 less per hour than men in similar jobs;
• inequality remains high. At £662 per week the top decile of earnings is nearly three and a half times the bottom decile at £198, and the gap has grown by 0.5%;
• the National Minimum Wage was increased by just 10 pence an hour in October. This is an increase of 1.8 per cent - well below average increases in earnings

Bharti Patel, Director of the Low Pay Unit, commented
"The figures show that regulation of wages can make a difference for low paid workers. But to tackle real inequalities in pay requires a substantial hike in the minimum wage, with future rises linked to increases in average earnings."

For further information, contact Bharti Patel on 020 7713 7616