DHSC's gender pay gap report 2019 (HTML version)
Published 23 January 2020
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1. Introduction
In 2017, the government introduced world-leading legislation that made it statutory for organisations with 250 or more employees to report annually on their gender pay gap. Government departments are covered by the Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017 which came into force on 31 March 2017. These regulations underpin the Public Sector Equality Duty and require relevant organisations to publish their gender pay gap by 30 March annually. This includes the:
- mean and median gender pay gaps
- mean and median gender bonus gaps
- proportion of men and women who received bonuses
- proportions of male and female employees in each pay quartile
The gender pay gap shows the difference in the average pay between all men and women in a workforce. If a workforce has a particularly high gender pay gap, this can indicate that there may be a number of issues to deal with and the individual calculations may help to identify what those issues are.
The gender pay gap is different to equal pay. Equal pay deals with the pay differences between men and women who carry out the same jobs, similar jobs or work of equal value. It is unlawful to pay people unequally because they are a man or a woman.
The Department of Health and Social Care is formed of the core department (DHSC) and its executive agencies, Public Health England (PHE), and the Medicines and Healthcare Products Regulatory Agency (MHRA).
The department and its executive agencies support the fair treatment and reward of all staff irrespective of gender. The department and its executive agencies pay approach is based on the principles of consistency, fairness and transparency, supporting the fair treatment and reward of all staff irrespective of gender.
Building a diverse and inclusive workforce that reflects the people we serve is one of the Civil Service’s top workforce priorities. Our collective aim is to make the Civil Service the UK’s most inclusive employer by 2020. Our diversity and inclusion strategy outlines how we plan to achieve this. The Civil Service should create opportunities for all in a truly meritocratic way and reward all civil servants fairly, regardless of gender, ethnicity or any other personal characteristic.
This report fulfils the department and its executive agencies reporting requirements, analyses the figures in more detail and sets out what we are doing to close the gender pay gap in the organisation.
2. Progress since 2017
The table below shows the progression of the gender pay gap in the department and its executive agencies from 2017 to date. The 2019 data in 2019 is covered in more detail later in the report.
| 2017 | 2018 | 2019 | |
|---|---|---|---|
| Median gender pay gap in hourly pay | 13.3% | 10.5% | 9.8% |
| Mean gender pay gap in hourly pay | 14.2% | 11.4% | 12.3% |
| Median bonus gender pay gap | 10.4% | 0.0% | 29.2% |
| Mean bonus gender pay gap | 33.1% | 27.9% | 33.3% |
3. Report population
3.1 Organisations
This report presents the combined data from the department and its executive agencies. This combined population breaks down as follows:
| Organisation | Percentage of population |
|---|---|
| PHE | 65.1% |
| DHSC | 19.3% |
| MHRA | 15.6% |
3.2 Workers in scope
Included in the data are the department and its executive agencies employed civil servants and special advisers. Contractors that are paid via the department’s payroll have also been included.
4. Gender pay gap in hourly pay
4.1 Mean and median
12.3% mean pay gap in hourly pay
9.8% median pay gap in hourly pay
4.2 Mean by organisation
12.3% mean pay gap in hourly pay in DHSC and its executive agencies
| Organisation | Mean pay gap in hourly pay |
|---|---|
| DHSC (core) | 4.1% |
| MHRA | 7.1% |
| PHE | 15.6% |
4.3 Median by organisation
9.8% median pay gap in hourly pay in DHSC and its executive agencies
| Organisation | Median pay gap in hourly pay |
|---|---|
| DHSC (core) | 5.1% |
| MHRA | 6.2% |
| PHE | 14.0% |
The department and its executive agencies use Civil Service grades ranging from administrative assistant to the Senior Civil Service (SCS). Grades vary by levels of responsibility and each grade has a set pay range. Colleagues move through the pay range as they develop their careers in the department and its executive agencies. There is a potential for staff who stay at the same grade for long periods to be in receipt of a higher salary. However, strategies are in place to provide progression through pay ranges for all staff regardless of time in post.
For this report, hourly pay is calculated using base pay, allowances, and bonuses paid in the relevant pay period as defined in the regulations.
For the department and its executive agencies collectively, the median pay gap has reduced from 10.5% to 9.8% in 2019 (and from 13.3% in 2017). The mean pay gap has increased from 11.4% to 12.3% in 2019 but has reduced overall from 14.2% since 2017.
Across the department and its executive agencies, 73.3% of colleagues in the lower quartile of pay are women.
The difference in hourly pay is driven by several factors, including a greater proportion of men in the SCS grade compared to the overall population, and higher pay and higher bonus opportunity in the SCS. In 2018, 8% of all females were SCS and in 2019 this is 7%.
At SCS level there are also outlying salaries which have more of an effect on the mean value of the data than the median. This is because a small number of salaries at the very top or bottom of the ranges can impact the overall average but have little impact on the mid-point of ranges.
5. Gender pay gap in bonus pay
33.3% mean pay gap in bonus pay
29.2% median pay gap in bonus pay
5.1 Median by organisation
29.2% median pay gap in bonus pay in DHSC and its executive agencies
| Organisation | Median pay gap in bonus pay |
|---|---|
| DHSC (core) | -17.0% |
| MHRA | 25.4% |
| PHE | 0.0% |
5.2 Mean by organisation
33.3% mean pay gap in bonus pay in DHSC and its executive agencies
| Organisation | Mean pay gap in bonus pay |
|---|---|
| DHSC (core) | 6.6% |
| MHRA | 26.2% |
| PHE | 38.3% |
In DHSC and its executive agencies, performance awards were paid as a set value depending on grade and performance. The individual organisations hold the responsibility of analysing the results to assure themselves that there is no gender bias.
The bonus pay gap is driven by the availability of higher bonuses in the SCS where the proportion of men is not in line with the overall population.
The proportion of males and females receiving bonuses of £500 or less has increased from 2018 to 2019, while the proportion of females receiving bonuses of over £5,000 has decreased between 2018-19. Both have contributed to a lower female median across DHSC and its executive agencies as a whole.
5.3 Proportion of males and females receiving a bonus payment
| – | Male | Female |
|---|---|---|
| Percentage receiving bonus | 22.3% | 21.0% |
5.4 Proportion of males and females in each pay quartile
| Quartile | Male | Female |
|---|---|---|
| Lower quartile | 26.7% | 73.3% |
| Lower middle quartile | 31.7% | 68.3% |
| Upper middle quartile | 38.9% | 61.1% |
| Upper quartile | 44% | 56% |
73.3% of colleagues in the lower quartile are female, compared with 56% in the upper quartile. As 64.7% of the department and its executive agencies workforce is female, this demonstrates that the pay gap is partly the consequence of a higher proportion of females occupying more junior roles.
6. Gender profile
The gender profile of the department and its executive agencies is as follows:
| – | Male | Female |
|---|---|---|
| Gender | 35.3% | 64.7% |
6.1 Gender profile by organisation
DHSC (core)
| – | Male | Female |
|---|---|---|
| Gender | 41% | 59% |
MHRA
| – | Male | Female |
|---|---|---|
| Gender | 42% | 58% |
PHE
| – | Male | Female |
|---|---|---|
| Gender | 32% | 68% |
6.2 Gender profile by grade
The gender profile at each grade for the department and its executive agencies is as follows:
| Grade | Number of men (% of men who work in this grade) | Number of women (% of women who work in this grade) | Percent female |
|---|---|---|---|
| AA/AO | 223 (8%) | 614 (12%) | 73% |
| EO | 305 (10%) | 790 (15%) | 72% |
| HEO/SEO | 1,069 (37%) | 1,982 (38%) | 65% |
| Grade 6/7 | 993 (34%) | 1,437 (28%) | 59% |
| SCS | 321 (11%) | 351 (7%) | 52% |
| Total (including other workers not in the above grading structure) | 2,915 | 5,175 | 64% |
This shows that the number of female employees at senior grades (particularly SCS) is not proportionate to the overall population.
The 2019 data shows the overall grade distribution has increased at SCS for males but not females. Distribution has increased for females at SEO and below while males at SEO and below has decreased. This has seen changes in the quartile distribution with the number of females in lower grades increasing and as they are joining towards the bottom of the pay range, this has resulted in a higher percentage of females in the lower quartiles.
7. Comparison with last year’s report
7.1 Gender pay gap in hourly pay
Mean gap in hourly pay
| 2018 | 2019 | Difference |
|---|---|---|
| 11.4% | 12.3% | 0.9% |
Median gap in hourly pay
| 2018 | 2019 | Difference |
|---|---|---|
| 10.5% | 9.8% | -0.7% |
7.2 Gender pay gap in bonus pay
Mean gap in bonus pay
| 2018 | 2019 | Difference |
|---|---|---|
| 27.9% | 33.3% | 5.4% |
Median gap in bonus pay
| 2018 | 2019 | Difference |
|---|---|---|
| 0.0% | 29.2% | 29.2% |
7.3 Proportion of males and females receiving a bonus
| Gender | 2018 | 2019 | Difference |
|---|---|---|---|
| Male | 21.6% | 22.3% | 0.7% |
| Female | 21.3% | 21% | -0.3% |
7.4 Proportion of males in each pay quartile
| Quartile | 2018 | 2019 | Difference |
|---|---|---|---|
| Lower | 29.2% | 26.7% | -2.5% |
| Lower middle | 34% | 31.7% | -2.3% |
| Middle upper | 37.6% | 38.9% | 1.3% |
| Upper | 43.2% | 44% | 0.8% |
7.5 Proportion of females in each pay quartile
| Quartile | 2018 | 2019 | Difference |
|---|---|---|---|
| Lower | 70.8% | 73.3% | 2.5% |
| Lower middle | 66% | 68.3% | 2.3% |
| Middle upper | 62.4% | 61.1% | -1.3% |
| Upper | 56.8% | 56% | -0.8% |
8. Targeted action to reduce the gender pay gap
The department and its executive agencies are committed to addressing the gender pay gap.
During the last year, progress has been made in the following areas:
- Continuing to review our recruitment policies and processes to ensure this drives fairness and equality in all our recruitment
Over the course of this reporting year, DHSC and PHE have been undertaking analysis of recruitment activity on a quarterly basis across a range of demographics, including gender. This has also been commended MHRA during 2019. Over the last year the new Civil Service Success Profiles have been introduced into recruitment processes. Success Profiles enable a fairer and more inclusive method of recruitment by enabling us to assess a range of experiences, abilities, strengths, behaviours and technical/ professional skills.
- Continued focus on improving representation of female participants on internal talent schemes, and additional gender-focused schemes at senior level
Continued focus on improving representation of female participants on internal civil service talent schemes and external gender-focused talent programmes, supporting progression to and within SCS. Greater focus on attracting and supporting women into the SCS – including identifying and removing barriers for entry, anonymising the application process to reduce any potential bias and ensuring interviews are structured with candidates being asked the same questions and marked against standard criteria.
- Use of effective pay strategies
The data shows there are a larger proportion of female employees in the bottom 2 pay quartiles. In 2018 DHSC core implemented an approach which provided larger increases for lower paid staff and this has provided greater progression and reduced differences in pay at each grade. End-of-year performance awards were paid as an equal amount to all staff. Across the department and its executive agencies, it is noted that a higher proportion of men are in more senior roles and have access to higher salaries and bonuses which impacts on averages overall. We continue to review our strategies to address gender balance and pay alignment.
- Gender equality has been an integral element of our diversity and inclusion strategies
The department and its executive agencies are striving to create an inclusive culture in which everyone has equal opportunity to achieve their potential, with gender equality being a key component of this. We are working closely to bring together a range of staff networks and diversity champions/inclusion network, to share best practice and work towards common goals.
- An increased focus on policies which support equality in the workplace
We continue to provide support for employees returning to work after maternity leave and career breaks. During 2019 an updated maternity policy was launched using gender-neutral language. We continue to promote and encourage use of shared parental leave, and provide a range of support, flexible working arrangements, use of technology and support networks to enable parents and carers to balance work and other responsibilities.