Last year, due to the coronavirus pandemic, the Government Equalities Office (GEO) and the Equality and Human Rights Commission (EHRC) took the decision to suspend enforcement of the gender pay gap deadlines for the 2019/20 reporting year.  This decision was made just over a week before the deadline for reporting. In the end, around 50% of employers still submitted reports which ultimately showed a widening of the gender pay gap.

Twelve months on and a question mark still hangs over whether mandatory reporting will be reinstated this year.  Businesses, MPs and campaigners for equality have all highlighted the risk that any progress that has been made in this area, not just since the introduction of mandatory reporting but over the past two decades, may be lost as a consequence.  

I blogged last year on the risks of not reporting for employers - these risks not only remain for employers but will be exacerbated due to the increased focus on the inequitable consequences of the pandemic, furlough and redundancy on women.  The Fawcett Society indicated during the first lockdown last year that the pandemic and subsequent economic fallout could delay the gender pay gap being closed by 30 years.

The Women and Equalities Committee published a report in January on the unequal gendered economic impact of the pandemic, highlighting both (1) the failures of the CJRS and SEISS schemes to take into account "the specific and well-understood labour market and caring inequalities faced by women" and (2) concerns that the UK Government's priorities for recovery are heavily gendered in nature.  The Committee called for the urgent re-instatement of gender pay gap reporting with reporting for the financial years 2019/20 and 2020/21 to be required in April 2021.  It also recommended proposals for both ethnicity and disability pay gap reporting to be introduced within the next 6 months.

Although the GOV.UK website still suggests that reporting will be required as usual, Gillian Keegan MP reportedly indicated in a BBC news report on 9 February that enforcement this year is now unlikely.  The mixed messages do seem to have had an impact on the number of businesses reporting so far - as at mid-February less than 600 employers (around 5% of those required) had submitted reports ahead of the 4 April deadline.

In the absence of official confirmation that the reporting requirement will once again be suspended affected employers should assume they will be required to report by the deadline.  Failing to do so is unlawful and risks enforcement action by the EHRC, which may lead to court orders and fines, and also reputational damage.  We will keep you updated on any changes.