PRESS RELEASE 28 March 2001

Low paid women deserve equal pay too

The Low Pay Unit welcomes the Government's proposals to improve employment opportunities for women and close the gender pay gap, outlined this week by Tessa Jowell, Employment Minister.

Since the Equal Pay Act was introduced, the gap between the average full-time earnings of men and women has decreased from 31% to 18%. But women in the lowest paying occupations have been left behind. In 1975, women in the lowest decile earned 38% of average male earnings. Twenty-five years later, this figure is just 1% higher.

The Government will encourage employers to undertake voluntary pay reviews, in order to address the gender bias inherent in many pay systems. Yet good practice alone will not reach those sectors of the economy where low pay is concentrated. Unless there is a statutory requirement for employers to undertake pay reviews, unequal pay for women will continue to be a feature of the labour market.

The National Minimum Wage has proved its effectiveness in reducing the gender pay gap. In the first year after it was introduced, the pay gap decreased by 1%. A higher minimum wage would significantly increase women's earnings in low paid, gender segregated employment and make a real impact on closing the pay gap.

Bharti Patel, Director of the Low Pay Unit, said:
"We welcome the Government's commitment to closing the gender pay gap. Work traditionally done by women has been undervalued for too long. A substantial increase in the minimum wage would be the simplest and most effective way of ensuring that low paid women get the rewards they deserve. "

For further information, contact Bharti Patel or Lise Smith on 020 7435 4268 or 07887 567 494