NEWS DISTRIBUTION
SERVICE News Release (Government Equalities Office) issued by COI
News Distribution Service on 27 April 2009
Issued by the News
Distribution Service on behalf of the Government Equalities Office
Harriet Harman today published the Equality Bill which will make
Britain stronger, fairer and more equal.
The Equality Bill sets out groundbreaking new laws which will
help narrow the gap between rich and poor; require business to
report on gender pay; outlaw age discrimination1; and will
significantly strengthen Britain's anti-discrimination legislation.
The Bill will simplify the law which, over the last four decades,
has become complex and difficult to navigate. Nine major pieces of
legislation and around 100 other measures will be replaced by a
single Act written in plain English to make it easier for
individuals and employers to understand their legal rights and obligations.
Despite considerable progress since 1997, inequality and
discrimination still exist which is why the law needs to be strengthened.
* women are paid on average 23 per cent2 less per hour than men;
* disabled people are twice as likely to be out of work;
* people from ethnic minority backgrounds are nearly a fifth less
likely to find work; and
* One in five older people are refused quotes for motor or travel
insurance, or car hire3.
The Equality Bill is expected to come in to force from autumn 20104.
Harriet Harman, Minister for Women and Equality, said: "The
Equality Bill is part of building a strong fair future for Britain
out of the downturn. That means fairness and opportunity.
Especially in tougher economic times, we need to face the problems
fairly and we need to look for a fairer future.
"Though we have ensured new rights and opportunities for
disabled people, for women, black and Asian people and older
people - there is still unfairness and discrimination to tackle.
And this Bill will take the action necessary to tackle it.
"Today we publish our tough new Equality Bill, promised in
our manifesto, building on our actions over the last 10 years. It
will make Britain a more equal place, and help us build a stronger
economy and fairer society for the future.
"We will shine the spotlight in every workplace on the
hidden pay discrimination against women.
"We will let employers have the right to choose to diversify
their team - with positive action.
"And we will end the last lawful discrimination - which is
against older people."
"But we know that inequality is grounded not just in gender,
race, disability, age and sexual orientation - but also by class.
Your family or the place you were born. So we will require public
bodies when they make strategic decisions to help narrow the gap
between rich and poor.
"If there are unequal societies marred by prejudice and
discrimination, then people feel excluded, the economy does not
flourish, communities feel resentful, so you don't have a
society which is at ease with itself.
"That's why equality is vital - not only important for
the individual, but for society and the economy."
James Purnell, Secretary of State for Work and Pensions, said:
"The Government wants to make sure each person gets the help
and support they need to overcome their barriers to work, fulfil
their potential and build a better life for themselves and their families.
"The Equality Bill will work hand in hand with our welfare
reforms to ensure everyone, whether disabled or non-disabled,
young or older, is given the opportunity to make a full
contribution to society.
"We will not leave people to cope on their own, without the
help they need, especially those people least able to compete in a downturn."
The Equality Bill will strengthen our equality law by:
1. Introducing a new public sector duty to consider reducing
socio-economic inequalities;
2. Putting a new Equality Duty on public bodies;
3. Using public procurement to improve equality;
4. Banning age discrimination outside the workplace;
5. Introducing gender pay reports;
6. Extending the scope to use positive action;
7. Strengthening the powers of employment tribunals;
8. Protecting carers from discrimination;
9. Offering new mothers stronger protection when breastfeeding;
10. Banning discrimination in private clubs; and
11. Strengthening protection from discrimination for disabled people.
Vera Baird, Solicitor General and Minister who is taking the
Equality Bill through the House, said: "Society is better
when it's equal. It's about getting the best out of
everybody by making opportunity available whatever characteristics
they have.
"The Government is committed to creating a more equal
society with fair chances for everyone, that's why we have
today published the Equality Bill, which will clarify and
strengthen the law.
"Employers will no longer be able to rely on keeping their
pay structure secret. We will ban secrecy clauses in employment
contracts, so that women can challenge unfair pay. And we will
encourage businesses to report on gender pay, but let us make no
mistake: if voluntary measures do not work, we will take stronger
measures to ensure equal pay for women."
Maria Eagle MP, Deputy Minister for Women and Equality said,
"Everyone has the right to be treated fairly and to have the
opportunity to fulfil their potential.
"The Equality Bill announced today is a major step towards
tackling unfairness and discrimination and will make Britain
stronger, fairer and more equal.
"It significantly simplifies legislation, to make it easier
for individuals and employers to understand their legal rights and
obligations. It also strengthens the law. Employers will no longer
be able to hide gender pay discrimination and public bodies will
have to seriously consider how they can actively close the gap
between rich and poor."
Community Cohesion Minster Sadiq Khan said: "I welcome the
Equalities Bill it will strengthen and simplify the current law,
setting out the rights of individuals and groups.
"In the current climate it is more crucial than ever to have
safeguards in place to protect our communities. Discrimination of
any type should not be tolerated. The bill will aim to remove
barriers of opportunity for the most vulnerable in our communities
and outline guidance that employers and individuals can take forward.
"As a government we have a role in ensuring that the
diversity which is a real strength of this country is successfully
managed and the bill should pave the way to achieve these plans".
More details of the Equality Bill are in "A Fairer
Future" which can be viewed at: http://www.equalities.gov.uk
What is in the Equality Bill?
Everyone in society, not just the poor, is adversely affected by
inequality. Inequality leads to shorter, unhealthier, and
unhappier lives, and increases violence and social problems.5 And
diversity leads to increased productivity and profitability. Equal
societies benefit everyone.
The Equality Bill will:
* Make Britain more equal, and help build a stronger society and
economy for the future.
* Significantly strengthen and streamline discrimination
legislation, replacing nine major pieces of legislation and about
100 other measures, spanning some forty years.
* Require key public bodies to seriously consider what action
they can take to reduce the socio-economic inequalities people
face; ban age discrimination outside the workplace against people
aged 18 and over; require organisations to report on gender pay;
among other things.
* The majority of the Equality Bill will be brought in to force
in autumn 2010.
Social Economic Duty
* Inequality is not just about your gender, race, disability,
age, or sexual orientation. It is also about social class - your
family background or where you were born.
* By the age of six, bright children from poor families are
overtaken by less able children from wealthier families.
* The Equality Bill will put a new duty on Government Ministers,
departments and key public bodies (such as Local Authorities,
Primary Care Trusts, Police or Education Authorities) to consider
what action they can take to reduce the socio-economic inequality
people face when making strategic decisions about spending and
services. It would not affect front line decisions about individuals.
* For example, poorer people tend to suffer greater ill health,
so a Strategic Health Authority may target health advice or
smoking cessation services at deprived areas. However a hospital
would not for example have to prioritise an operation on a person
from a deprived area.
* Many public bodies already do this; this duty will mean the
others will now have to catch-up.
* Inspectorates (such as Audit Commission) will check for compliance.
Gender pay reports
* Inequality cannot be tackled if it is hidden. The Equality Bill
will shine a spotlight on gender pay discrimination, workplace by
workplace, so problems can be identified and action taken.
* Across the country women are paid on average nearly a quarter
less than men. In some sectors such as financial services the
gender pay gap is acute. A recent inquiry by the EHRC found that
in financial services, women are paid up to 60 per cent less than
men and 79 per cent less in bonuses.
* The Bill will contain a power to require reporting on the
gender pay gap by employers with 250 or more employees. However
the Government has committed not to use this power before 2013 and
it will only be used if sufficient progress on reporting has not
been made. The Equality and Human Rights Commission will develop a
set of metrics for gender pay reports in consultation with
business, unions and others over the summer. The Commission will
monitor progress on reporting within the private sector annually.
* Public bodies (such as Local Councils, hospitals and police
forces) with more than 150 employees will be required to report on
gender pay, as well as other equality data such as number of
disabled or Black, Asian and minority ethnic employees. This will
allow similar authorities to be compared so we can see where
progress has been made and share best practice. Details will be
consulted on over the summer.
* Nearly a quarter6 of employers ban their staff talking about
their wages, with women more likely to be in the dark about
colleagues' pay than men. The Equality Bill will ban
'secrecy clauses' so that work colleagues can compare
wages if they want, and challenge employers who unlawfully pay
them less.
Banning age discrimination
* Older people must not be written off or denied access to
medical treatment, financial insurance, or other goods and
services because of their age. It's important that they play
a full role in society and are treated fairly.
* The Equality Bill will ban age discrimination7 against people
aged 18 and over outside of the workplace, where goods are bought,
and services provided, such as in shops, hospitals, and when
buying financial products (it is already banned in the workplace).
* Things that are beneficial, such as free bus passes, will still
be allowed.
* This is particularly important as the population ages: by 2050,
over half of the UK's population will be over 50 years old.
The number of people aged over 85 will double in the next twenty years.
* The ban could mean that an older person is offered lifestyle
advice after suffering a heart attack, which may currently only be
offered to younger people, or that the price an older lady pays
for travel insurance is based on actual risk she faces, rather
than an arbitrary age-based fixed cost.
* Specifics will be consulted on this summer. The Government will
bring the new law into force more quickly in sectors which are
ready to comply, from 2012.
Positive action
* The Equality Bill will allow employers to choose to take
positive action to appoint a person from an under-represented
group, provided candidates are equally suitable, and so balance
things out if they want to.
* Evidence shows that people from some groups, for whatever
reason, do not get the same opportunities as others - despite
having similar qualifications. For example, only:
* Only three High Court Judges are from an ethnic minority;
* Less than a fifth of University Vice Chancellors are women;
* Less than twelve per cent of board directors in the UK's
top 100 companies are women; and
* Not a single elected Member of Parliament is an Asian women.
* Some businesses want to increase the diversity of their
workforces, perhaps to access new markets, gain fresh insights, or
get a difference perspective.
* It makes sense for local organisations and public bodies to
reflect and so better understand the communities they serve.
* The most suitable person must still get the job - the merit
principle still applies.
* Positive action will be entirely optional, and is absolutely
not about quotas.
* Business benefits of a diverse workforce include increased
efficiency and productivity, attracting new business, increased
understanding of customers' needs, and filling skills gaps.
* For example, a business may want to increase the number of
women on its board. A recent study in France showed that a higher
proportion of female managers reduced the volatility of a
business's share price8. Last year, when almost all shares
fell, it found that the fewer women managers a company had, the
greater was the drop in its share price.
* Fortune 500 firms with more women on the board outperform their
rivals and are more profitable9.
* The Equality Bill will allow political parties to continue to
use All Women Shortlists to select parliamentary candidates until
2030 - at least another five general elections.
* Positive discrimination (employing someone because of a
characteristic regardless of merit) will remain illegal.
* The CBI, TUC, and the Equality and Human Rights Commission
support positive action.
Private members clubs
* Nobody should be treated as a second class citizens - whether a
women, disabled, black or Asian, or gay.
* So the Equality Bill will ban private members' clubs from
discriminating against members or their guests, for example a golf
club cannot bar a women from playing on certain days, while
allowing male members to play whenever they like.
* People would be outraged if disabled or Black people were only
allowed to play in their local golf club on certain days, so why
should women be restricted?
* We recognise that there are benefits to clubs with 'shared
characteristic'10, so same sex clubs, gay associations, clubs
for people of a particular religion, etc, will still be allowed.
New Equality Duty on the public sector
* Public bodies already have duties to consider how their
spending decisions, employment practices, and services they
provide affect people according to their race, disability, or gender.
* The Equality Bill will replace these with a new streamlined and
strengthened Equality Duty, which will be extended to also cover
sexual orientation, gender reassignment, age, and religion or
belief, so that people get fairer opportunities and better public services.
* For example, a town planner might use drop-down kerbs and
accessible public toilets for wheelchair users, or the council
provide extra park benches in local parks, so that older people
can benefit from public spaces as well as younger people.
Procurement
* The public sector spends £175 billion every year on goods and
services provided by the private sector. Nearly a third of firms
sell goods or services to the public sector.
* The Equality Bill will make it clear that public bodies can use
procurement to drive equality when they are buying goods and
services from private sector firms. This will be consulted on over
the summer.
* For example, a council commissioning a construction project for
a social regeneration scheme could require the contractor to run a
positive action programme to train women in under-represented
areas such as plumbing or carpentry, or pre-qualification criteria
could be stated.
Strengthening employment tribunals
* Employment Tribunals can currently make recommendations to
organisations to improve work practices - but only in relation to
the individual who brought a case, who often ends up leaving anyway.
* The Equality Bill will allow tribunals to make wider
recommendations to firms, which can benefit everybody in the
workforce and help prevent similar types of discrimination
happening again.
Protecting Carers From Discrimination
* It is currently unlawful to discriminate against or harass
someone because they are 'linked to' or 'associated
with' a person who is of another sexual orientation, race, or
religion or belief (e.g. if an employer discriminates against an
employee because she is married to an Asian man that will be unlawful).
* The Equality Bill will extend this to age, disability, sex, or
gender reassignment (e.g. protecting the carer of a disabled person).
* An employer could not refuse to promote a member of staff just
because he cares for an older relative.
MEDIA ENQUIRIES
Please contact the Government Equalities Office press office
on:
0207 276 0988 / 0207 276 0932 / 0207 276 0996 / 0207 276 0991
NOTES FOR EDITORS
* The Equality Bill will cover England, Scotland, and Wales.
Northern Ireland has its own equality legislation.
* The Equality Bill will replace the Equal Pay Act 1970, the Sex
Discrimination Act 1975, the Race Relations Act 1976, the
Disability Discrimination Act 1995, much of the Equality Act 2006,
the Employment Equality (Religion or Belief) Regulations 2003, the
Employment Equality (Sexual Orientation) Regulations 2003, the
Employment Equality (Age) Regulations 2006, and the Equality Act
(Sexual Orientation) Regulations 2007 (where applicable, as
subsequently amended), plus other ancillary pieces of legislation.
* The National Equality Panel is independent and consists of
academic experts in inequality. It is chaired by leading academic
Professor John Hills and is analysing how people's life
chances are affected by factors such as where they were born and
family background, as well as gender, race, and whether they have
a disability. It will provide the Government with an authoritative
analysis of inequality in Britain by the end of 2009.
* Last summer's 'Framework for a Fairer Future - The
Equality Bill' and the Government's response to the
Discrimination Law Review can be downloaded from http://www.equalities.gov.uk
* The Government is publishing its new ageing strategy later this
year, which is looking at creating an age friendly society,
preparing for and living well in later life, as well as making
sure stronger protection and support is available: http://www.dwp.gov.uk/ageing-society/preparing/
* The Government Equalities Office is responsible for the
Government's overall strategy, legislation and priorities on
equality issues. It was established in October 2007.
* The Equality and Human Rights Commission is a statutory body
established under the Equality Act 2006, which took over the
responsibilities of the Commission for Racial Equality, Disability
Rights Commission, and Equal Opportunities Commission as well as
taking on new responsibilities for sexual orientation, religion or
belief, age and human rights. It is the independent advocate for
equality and human rights in Britain. It aims to reduce
inequality, eliminate discrimination, strengthen good relations
between people, and promote human rights.
1 Aged 18 or over, outside of the workplace
2 This is the difference between mean hourly pay, excluding
overtime, of all men and women in employment (full and part-time),
from the 2008 Annual Survey of Hours and Earnings.
3 Age Concern/Help the Aged, Insurance and age - exploring
behaviour, attitudes and discrimination, March 2007
4 Subject to successfully passing through Parliament.
5 Wilkinson and Pickett (2009): The Spirit Level: Why More Equal
Societies Almost Always Do Better
6 According to the former Equal Opportunities Commission in 2004.
7 Details of the new age discrimination ban will be set out in
secondary legislation made under the Equality Bill. Age
discrimination is already banned in the workplace.
8 According to recent research by Ceram, the French business school.
9 The Bottom Line: Corporate Performance and Women's
Representation on Boards, Lois Joy, Ph.D., Director, Research, and
Nancy M. Carter, Ph.D., Vice President, Research, at Catalyst
Inc.; Harvey M. Wagner, Ph.D., and Sriram Narayanan, Ph.D, October 2007
10 Except skin colour - clubs restricted to black or white people
are illegal.