"Addressing the disparity in gender representation at senior levels will take time, but it will help close the current gender pay gap at the Bank."
The latest statistics show a median gap of 24% and a mean gap of 21% within the organisation.
The mean pay gap is the difference between average hourly earnings of men and women. The median pay gap is the difference between the midpoints in the ranges of hourly earnings of men and women. It takes all salaries in the sample, lines them up in order from lowest to highest, and picks the middle-most salary.
The Bank says that while it is confident that men and women are paid equally for doing equivalent jobs across the Bank, the main reason for its "organisation-wide gender pay gap" is an imbalance of male and female colleagues across the organisation.
At the moment there are fewer women in senior roles than men, as well as a higher proportion of women relative to men in lower scales. When the data accounts for scale differences the gap reduces to around 3%.
Female representation at senior management level has increased from 20% in 2014 to 30% in 2017. In its report, the Bank says: "We still have much to do to ensure we have a sufficient pipeline of female staff in our senior management team and we are undertaking a range of initiatives to help us meet and address diversity imbalances as part of our inclusion strategy."
Bank of England governor Mark Carney said: "The Bank of England recognises that to pursue its mission of promoting the good of the people of the United Kingdom, it must reflect the diversity of the people it serves. That’s why, three years ago we made ‘Diverse and Talented’ the first pillar of our inaugural strategic plan. To support our objectives, we have introduced diversity targets, including an aim to have 35% female representation in senior roles by 2020. We have made steady progress towards that objective since it was set, moving from 20% senior female representation in 2014 to 30% in 2017.
"We must also support equality through fair pay. We’re confident that men and women are paid equally for doing the same job at the Bank; however, the greater proportion of men than women in senior roles creates a gender pay gap.
"We are working hard to address this imbalance through inclusive and diverse recruitment, including diverse shortlists and interview panels, offering flexible working, providing continual unconscious bias training, and fostering an inclusive culture. Addressing the disparity in gender representation at senior levels will take time, but it will help close the current gender pay gap at the Bank.
Nicky Morgan MP, Chair of the Treasury Committee, commented: “As the Governor told the Treasury Committee last month, the Bank’s gender pay gap on a median basis is 24 per cent.
“The Bank’s measures to address its pay gap seem to be on the right track, but we cannot be complacent. Any gap is still too great.
“As part of our Women in Finance inquiry, we will keep a close eye on organisations as they report their gender pay gap before the April 2018 deadline.
“We may call for organisations to give evidence to the Committee to hear about best practice. Financial firms should be prepared to explain any gender pay gap that they may have.”
