BRITAIN’S gender pay gap has widened four times faster than that in other developed countries since the pandemic — with women facing a hefty “motherhood penalty” at work
It widened by 2.4 percentage points to 14.4 per cent in 2021, putting it above the 13.8 per cent average for OECD nations including the US, Sweden and Germany.
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That has set back the UK’s longer-term good record on pay parity, meaning it could take 50 years to reach equality, says consultancy PwC, which produces an influential annual index on the UK’s gender pay gap.
It blames high childcare costs in Britain for pricing women out of the jobs market.
Many cut hours or do work they are overqualified for as they need greater flexibility for additional care responsibilities.
PwC said childcare costs eat up a third of a UK family’s average income compared with 1 per cent in Germany.
It said women returning to work following maternity leave are taking an earnings hit.
By age 42, full-timers earn 7 per cent less than women in similar backgrounds who do not have children.
Larice Stielow, senior economist at PwC, said: “An 18-year-old woman entering the workforce today won’t see pay equality in her working life.
“At the rate the gender pay gap is closing, it will take more than 50 years to reach parity.”
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Zlatina Loudjeva, partner at PwC, said: “The cost of childcare in the UK and attitudes to childcare need focus and action.
“There is no panacea. We should consider enhanced parental leave policies and more flexible working.”
PwC added that full-time working dads earn 21 per cent more than men from similar backgrounds with no kids.
The gender gap is assessed by measuring all jobs, not the pay difference between men and women in the same job.
A TWITTER account called Gender Pay Gap Bot is to retweet the pay gaps of firms that claim to celebrate International Women’s Day tomorrow.
Early targets include Newcastle Building Society, where women’s hourly pay is 18.6 per cent lower than men’s.
Dolly vax firm’s £150m Brit HQ
A U.S. drug group partly funded by country superstar Dolly Parton to develop a Covid jab has chosen the UK for a £150million vaccine HQ.
Moderna said a new science and innovation campus in Harwell, Oxon, would create hundreds of construction jobs and have about 150 employees once operational.
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The site will develop medicines for coronavirus, flu and respiratory diseases.
The UK has committed to Moderna’s vaccines for a decade.
It comes despite pharma firms arguing hefty taxation discourages investment.
They face a levy of 26.5 per cent, which covers the cost of capping the NHS medicines bill.
Cars accelerate
NEW car registrations jumped by more than a quarter last month as supply chains eased and more vehicles rolled out of factories.
New registrations rose by 26.2 per cent to 74,441 compared with last year’s figures, the Society of Motor Manufacturers and Traders (SMMT) revealed yesterday.
The SMMT expects registrations will reach 1.79million this year, up 11.1 per cent on the previous year.
It was also the biggest February for new van sales since 1998, with about 17,540 vans registered last month.
LIDL has upped pay again for its lowest-earning workers, to £11-an-hour.
The discount chain said it was investing £13million extra in rises for staff working outside the M25.
The move comes five months after it increased entry-level pay from £10.10 to £10.90.
City exodus fear
THE City was dealt a fresh blow yesterday after another London firm said it was seeking a New York listing.
The threat by software firm WANdisco, worth £875million, comes after building materials group CRH said it would shift its listing to New York, while UK-based electronic chipmaker ARM said it would also head to the US.
Bankers argue that British pension funds favour investing in bonds rather than stocks and shares, meaning there isn’t big support for listed businesses in Britain.
Big ‘Bucks for extra coffee
STARBUCKS plans to open more than 100 new coffee shops after more expensive drinks increased takings.
The coffee giant will invest £30million in new stores and refurbishing old ones.
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Last year it was reported that Starbucks was thinking of selling its UK business after the pandemic changed consumer habits.
Its UK sales grew by over a third last year to £450million, although higher staff pay and ingredient costs meant operating profits dipped from £16.5million to £12.6million.
Starbucks, like other coffee chains, has hiked its prices to cover inflation — a tall latte now costs £3.15 while a caramel frappucino costs £5.15.
Duncan Moir, president of Starbucks Europe, Middle East and Africa, said: “We have had a very strong year of revenue growth and we have exceeded our pre-pandemic revenue levels.”
Lush tiff big stink
A SHAREHOLDER row at Lush has turned ugly after the bath bomb chain said it would refer the matter to regulators.
Last month Lush blocked the sale of shares by an ex-senior employee, Andrew Gerrie, to his investment firm Silverwood.
Lush claims the deal was not done for cash but in exchange for shares in an illiquid firm, which breaches its rules.
Silverwood is taking its own legal action and says Lush’s refusal to transfer the shares is “entirely without merit”.
