What are pay gaps?

UK companies with 250 or more employees must publish their gender pay gap data. The gender pay gap is the percentage difference between the average hourly earnings of men and women.

What is the difference between the gender pay gap and equal pay?

The gender pay gap is not the same as equal pay. Equal pay has been a legal requirement for almost 50 years and states that men and women doing work of equal value should be paid the same. This applies to all employers, no matter of their size.

So, a company might have a gender pay gap if a majority of men are in top jobs, despite paying male and female employees the same amount for comparable roles.

Why is there a gender pay gap?

There’s no one reason behind the gender pay gap. It’s a complex issue.

The Fawcett Society, which campaigns for equality, say that caring responsibilities can play a big part. Women often care for small children or elderly relatives. This means that women are more likely to work in part-time roles, which are often lower paid or have fewer opportunities for progression.

Another important factor is a divided labour market. Women are sadly still more likely to work in lower paid jobs.

Men also tend to take up a greater proportion of the most senior jobs in a company, which are higher paid.

What is ethnicity pay gap?

While ethnicity pay reporting is not a legal requirement, we feel that identifying and taking action to address ethnicity pay imbalance will be an important contribution to our EDI work.

Similarly to the gender pay gap, the ethnicity pay gap is the difference in average hourly pay received by individuals who have declared themselves ethnically diverse (Black, Asian, Mixed and Other) to those who have declared themselves as White.

We have calculated our ethnicity pay gap using the same rules that are in place for the gender pay gap.

You can download our latest report below. 

The Prince's Trust Gender and Ethnicity Pay Gap Report 2021 (pdf, 556kb)