Gender pay gap report 2023
Background
The Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017 stipulate that all businesses, public sector and third sector organisations with over 250 employees must publicly report on average pay differences between their male and female employees.
The Regulations require employers to publish their:
- Mean gender pay gap in hourly pay
- Median gender pay gap in hourly pay
- Mean bonus gender pay gap
- Median bonus gender pay gap
- Proportion of males and females receiving a bonus payment, and
- Proportion of males and females in each pay quartile.
As a public sector body, we are required to publish this pay gap information within 12 months, taking the “snapshot date” of 31 March 2023.
Our calculations follow the legislative requirements as set out in the Equality Act 2010 (Specific Duties & Public Authorities) Regulations 2017. All staff who were deemed to be relevant employees at 31 March 2023 are included.
This information will be published on the Cherwell District Council (CDC) website for a minimum of 3 years and published on the government website by 31 March 2024.
Equal pay and gender pay gap
The purpose of gender pay gap reporting is to achieve greater gender equality in terms of pay across the UK and increase pay transparency. This differs from equal pay which deals with differences between men and women who carry out the same roles.
Details within this report
Using a snapshot of employees’ pay as at 31 March 2023, only 3 of the 6 calculations detailed above were made due to no bonus payments being paid at CDC. The 3 calculations are as follows:
- Mean gender pay gap
- Median gender pay gap
- The proportion of men and women divided into four quartile pay bands
Information required for publication
Relevant employee
An employee who was on full pay at the point of the data snapshot as at 31 March 2023.
Mean gender pay gap
The mean is defined as the average of the figures and is calculated by adding up all the figures and dividing by the number there are.
Median gender pay gap
The median is defined as the salary that lies at the midpoint and is calculated by ordering all salaries from highest to lowest and the median is the central figure.
Quartile pay bands
The quartile information is calculated by listing all salaries from highest to lowest and then splitting that information into four equal quarters to determine the percentage of male/female employees in each quartile.
Workforce profile
On 31 March 2023, CDC had 497 relevant employees; of which 51.9% (258 employees) were men and 48.1% (239 employees) were women.
Gender pay gap as at 31 March 2023
Mean: percentage difference and average hourly rate of pay
The mean difference recorded at CDC has increased from 1.64% in March 2022 (0.29p per hour) to 2.49% (£0.47 per hour) but remains substantially less than the national public sector mean pay gap which is 13.9% (Office for National Statistics – ASHE).
As at 31 March 2023 the mean hourly rate for men was £18.90 per hour and for women it was £18.43 per hour. This means that men earned an average of £0.47 per hour more than women, which equates to a mean difference of 2.49%. This is the first time in three years that the hourly rate for men has been higher than women.
The figures for 2021, 2022 and 2023 can be seen in the diagram below. This diagram shows the change from women having a slightly steeper increase for 2021-2022, then reducing slightly in 2023.
Median percentage difference and hourly rate of pay
As at 31 March 2023 the median hourly rate of pay for men and women was the same with both being paid £17.48 per hour. This is the second time in a 3-year period that there has been no median difference between men and women. As there is no median difference as at 31 March 2023, CDC remain considerably less than the national public sector median pay gap which is 14.9% (Office for National Statistics – ASHE). The figures for 2021, 2022 and 2023 can be seen in the diagram below. This diagram shows a consistent increase for women over the last 3 years, whilst the median rate for men has seen fluctuation.
Proportion of men and women receiving bonuses
CDC does not operate any performance related pay or bonus schemes and therefore has no bonus gender pay gap.
Pay quartiles
CDC employed 497 relevant employees as at 31 March 2023 which means there are 124 employees in the lower quartile, lower middle quartile and the upper quartile. The upper middle quartile has 125 employees. The gender split per quartile as at 31 March 2023 is detailed below and serves as a useful benchmark to determine progression through the pay scales.
Lower quartile:
- Men - 54.84 per cent
- Women - 45.16 per cent
Lower middle quartile:
- Men - 46.77 per cent
- Women - 53.23 per cent
Upper middle quartile:
- Men - 52 per cent
- Women - 48 per cent
Upper quartile:
- Men - 54.03 per cent
- Women - 45.97 per cent
The hourly rates that represent each quartile are as follows:
Upper - relates to the hourly rates of £21.21 and above
Upper middle - relates to the hourly rates of £17.48 – £21.21
Lower middle - relates to the hourly rates of £13.90 - £17.48
Lower - relates to the hourly rates up to £13.90
The proportion of males to females in the lower quartile, upper middle quartile and upper quartile are different to that of the total workforce profile of 51.9% males to 48.1% females.
When reviewing the quartiles year on year, it is evident that there has been the biggest shift in the lower middle quartile with an increase in women of 5.23%. All other quartiles have seen an increase in men, with the highest percentage shift in the upper middle quartile at 5.17%. The percentage difference by year is displayed in the table below.
Table to show percentage difference by quartile between 2022 and 2023:
|
Quartile |
% Men 2022 |
% Men 2023 |
% Women 2022 |
% Women 2023 |
% difference |
|
Lower |
53.17 |
54.84 |
46.83 |
45.16 |
1.67% increase in men |
|
Lower middle |
52.00 |
46.77 |
48.00 |
53.23 |
5.23% increase in women |
|
Upper middle |
46.83 |
52.00 |
53.17 |
48.00 |
5.17% increase in men |
|
Upper |
52.80 |
54.03 |
47.20 |
45.97 |
1.20% increase in men |
Commitment
We are committed to the principles of equality, diversity, fairness and inclusion and our approach to people management should not put any group at a disadvantage. Regardless of identity or background, everyone deserves to be able to develop their skills and talents to meet their full potential, work in a safe, supportive and inclusive environment, be fairly rewarded and recognised for the work they do and have the opportunity to have their say on matters that affect them. We are also committed to achieving a diverse workforce that fully reflects our community.
We will continue to advance our inclusion initiatives, particularly where there are any barriers for women to progress into higher paid roles, or roles where they are under-represented.
Flexible and agile working and family friendly policies will assist Cherwell District Council to attract and retain staff in a competitive job market and in a geographical area with low unemployment.
Summary
This year sees a difference to the previous two years with the pay gap altering with men earning a mean difference of 2.49% more than women. The median reports no difference for the second time in a 3-year period. Even with the shift in the mean, the gender pay gap within CDC does not pose a significant concern at this time. It will be necessary to continue to monitor and be committed to learning from best practice as part of our journey. The gender pay gap data will be analysed on an annual basis and a comparison of figures will be completed year on year. The Senior Management Team will continue to review and monitor this data. We will ensure that job grades continue to be determined through objective analysis and job evaluation to maintain the integrity of the pay and grading system.