Harriet Harman publishes Britain's Equality Bill
(27 April 2009)

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 discrimination ; 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 and is expected to come in to force from autumn 2010.

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% 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 hire .

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.

"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.

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% less than men and 79% 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 quarter 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.

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.

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 price. 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 profitable.

The Equality Bill will also allow political parties to continue to use All Women Shortlists to select parliamentary candidates until 2030 - at least another five general elections.

.More details of the Equality Bill are in "A Fairer Future" which can be viewed at: www.equalities.gov.uk