Transparency data

FCO Gender Pay Gap Report 2019 to 2020

Published 15 December 2020

Foreign and Commonwealth Office (FCO) data on the difference in employees’ average earnings from April 2019 to March 2020.

On 2 September 2020 the Department for International Development and the Foreign and Commonwealth Office merged to become the Foreign, Commonwealth & Development Office. The data for this report is for the year ended 31 March 2020 and so pre-dates the merger and covers the Foreign and Commonwealth Office only. Future actions will cover the Foreign, Commonwealth and Development Office.

What is Gender Pay Gap reporting?

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 (PSED) and require relevant organisations to publish their gender pay gap annually. This includes the mean and median gender pay gaps; the mean and median gender bonus pay gaps; the proportion of men and women who received bonuses; and the 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 large 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. A gender pay gap does not equate to the existence of an equal pay problem. It is unlawful to pay people unequally because they are a man or a woman and the FCO supports the fair treatment and reward of all employees, irrespective of gender. Equal pay deals with the 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.

Our vision is for all Foreign, Commonwealth and Development Office (FCDO) employees to be valued and able to contribute to the best of their abilities.

What is included in this report?

This report fulfils the Department’s reporting requirements, and sets out what we will do to close the combined gap in the FCDO. Salary and gender balance data used for this report is based on employee pay on 31 March 2020 and bonuses paid between 1 April 2019 and 31 March 2020.

This report includes data for legacy FCO employees, as well as employees from our Trading Fund (FCO Services) and Executive Agency (Wilton Park). FCO Services will also publish a separate report for its own employees. In line with legislation, employees are defined as the UK based employees who are on FCO payroll. The report does not include data for Local Staff (employees who are locally employed at Posts overseas) or contingent labour (the FCO does not have any directly engaged non-employees).

Headline figures

Mean Ordinary Pay Gap 2017 to 2020

2017	2018	2019	2020	Difference 2019 - 20	Difference 2017 - 20
10.6%	8.7%	8.3%	6.5%	-1.8%	-4.1%

Median Ordinary Pay Gap data 2017 to 20

2017	2018	2019	2020	Difference 2019 - 20	Difference 2017 - 20
11.1%	8.2%	10.1%	8.6%	-1.5%	-2.5%

Mean Bonus Pay Gap data 2017 to 20

2017	2018	2019	2020	Difference 2019 - 20	Difference 2017 - 20
16.2%	14.6%	9.4%	13.9%	4.5%	-2.3%

Median Bonus Pay Gap data 2017-20

2017	2018	2019	2020	Difference 2019 - 20	Difference 2017 - 20
5.5%	6.2%	0%	10.6%	10.6%	5.1%

The FCO’s organisational context

The FCO and our global diplomatic network advances British interests and acts for the people of the UK around the world, supporting all UK Government activity overseas. 31 Government partners rely on our global platform. The FCO’s network represents the whole of the UK, celebrating its diversity, encapsulating twenty-first century UK values and interests, and is committed to delivering for British nationals across the globe.

Figure 1 provides context on the FCO’s grading structure. Figure 2 illustrates the gender balance in the organisation as a whole, while Figure 3 shows the FCO’s gender balance broken down by grade.

Figure 1: FCO grading structure

UK Civil Service Grade	Foreign Office Grade
Senior Civil Service (SCS 1-4)	Senior Management Structure (SMS 1-4)
Grade 6	D7
Grade 7	D6
Senior Executive Officer	C5
Higher Executive Officer	C4
Executive Officer	B3
Administrative Officer	A2
Administrative Assistant	A1

Figure 2: FCO gender balance

	2017	2018	2019	2020
Men	58%	57%	56%	55%
Women	42%	43%	44%	45%

Figure 3: Gender balance by grade

Gender balance by grade 2017

Grade	Men	Women
A1	42%	58%
#A2	41%	59%
Apprentice	Apprentice data is not available for 2017	Apprentice data is not available for 2017
B3	47%	53%
C4	61%	39%
C5	66%	34%
D6	62%	38%
D7	58%	42%
SMS1	68%	32%
SMS2	78%	22%
SMS3	76%	24%
SMS4	100%	0%

Gender balance by grade 2018

Grade	Men	Women
A2	43%	57%
Apprentice	85%	15%
B3	48%	52%
C4	58%	42%
C5	63%	37%
D6	60%	40%
D7	57%	43%
SMS1	59%	41%
SMS2	77%	23%
SMS3	80%	20%
SMS4	100%	0%

Gender balance by grade 2019

Grade	Men	Women
A1	48%	52%
A2	46%	54%
Apprentice	85%	15%
B3	46%	54%
C4	56%	44%
C5	62%	38%
D6	60%	40%
D7	57%	43%
SMS1	60%	40%
SMS2	73%	27%
SMS3	73%	27%
SMS4	100%	0%

Gender balance by grade 2020

Grade	Men	Women
A1	43%	57%
A2	45%	55%
#Apprentice	74%	26%
B3	45%	55%
C4	56%	44%
C5	62%	38%
D6	59%	41%
D7	58%	42%
SMS1	61%	39%
SMS2	69%	31%
SMS3	68%	32%
SMS4	67%	33%

Mean and median ordinary pay gap data

‘Ordinary pay’ is defined as any monetary payment such as: basic pay; allowances; pay for piecework; pay for leave; shift premium pay. It does not include: overtime pay; redundancy pay; pay related to termination of employment; any repayments of authorised expenses; benefits in kind; interest-free loans. ‘Mean’ refers to the average calculated central value, while ‘median’ refers to the mid-point value.

The mean gender pay gap is the difference between the mean ‘ordinary pay’ for female and male employees. Figure 4 shows that the mean ‘ordinary pay’ in the FCO for men is 6.5% higher than for women, but that the gap is less than it was in 2017, 2018 and 2019.

Figure 4: Mean ordinary pay

2017	2018	2019	2020	Difference 2019-20	Difference 2017-20
10.6%	8.7%	8.3%	6.5%	-1.8%	-4.1%

The median gender pay gap is the difference between the median ‘ordinary pay’ for female and male employees. Figure 5 shows that the median ‘ordinary pay’ in the FCO for men is 8.6% higher than for women. When comparing data across the last 4 years, there has been an overall reduction in the median ordinary pay gap.

Figure 5: Median ordinary pay

2017	2018	2019	2020	Difference 2019-20	Difference 2017-20
11.1%	8.2%	10.1%	8.6%	-1.5%	-2.5%

Mean and median bonus pay gap data

‘Bonuses’ are defined as any rewards related to: profit-sharing; productivity; performance; incentive; commission. The rewards can be made in: cash; vouchers; securities; securities options; interests in securities.

The mean gender pay gap for bonuses shows the difference between the mean ‘bonus pay’ for female and male employees. Figure 6 shows that the mean ‘bonus’ pay in the FCO for men is 13.9% higher than for women. This constitutes a 4.5 percentage point increase in the mean bonus pay gap since 2019, an increase on what was a downward trend over the previous three years.

The median gender pay gap data for bonuses shows the difference between the median ‘bonus pay’ for female and male employees. Figure 7 shows that the median ‘bonus’ pay in the FCO for men is 10.6% higher than for women. The majority of FCO bonuses are awarded as part of the annual pay settlement to high performing employees. In 2019, our ‘end year’ bonus values were fixed cash amounts set by grade (i.e employees in the same grade receive the same level of bonus). The male and female employees at the mid-point, whose bonuses were used to determine the median bonus for last year’s Gender Pay Gap report were from the same grade, C4, hence the amount was the same for both genders in 2018-19. In 2019-20 the male employee mid-point was in D6 whilst the female mid-point was in C5 resulting in the 10.6% median pay gap we see below. Consequently when comparing data across the 4 years the FCO has reported, what was a downward trend in the median bonus pay gap has now increased. This analysis, and other evidence, will be used to help design and implement a new inclusive performance management approach to reward FCDO staff.

Figure 6: Mean bonus pay

2017	2018	2019	2020	Difference 2019-20	Difference 2017-20
16.2%	14.6%	9.4%	13.9%	4.5%	-2.3%

Figure 7: Median bonus pay

2017	2018	2019	2020	Difference 2019-20	Difference 2017-20
5.5%	6.2%	0%	10.6%	10.6%	5.1%

Figure 8 illustrates the percentage of male and female employees paid a bonus in 2018, 2019 and 2020. There has been an overall decrease in the percentage of employees paid a bonus in 2020, compared with 2019 and 2018. This decrease affects both male employees (9.9 percentage point decrease since 2019) and female employees (9.2 percentage point decrease since 2019). However, the gap between male and female employees paid a bonus in 2018 was 3.8%, in 2019 was 6.2%, and in 2020 was 5.5%, so an overall increase in the gap since 2018. Female employees have seen a larger contraction of their bonus population than men, a 29.2% contraction since 2018 compared to a 23.9% contraction for men.

Figure 8: Proportion of male and female employees paid a bonus

	2018	2019	2020
Men	52.4%	49.8%	39.9%
Women	48.6%	43.6%	34.4%

Explaining the FCO’s ordinary pay gap

FCO pay policy is fully compliant with the Equality Act 2010: men and women performing work of equal value are paid within the same pay range. A range of factors, including grade, time at grade and performance, determines FCO pay. The FCO regularly monitored the impact of pay practices, including by annual equal pay audits and reviews and the FCDO will uphold this practice.

The FCO made progress in reducing the gender pay gap and will endeavor to do so as part of the FCDO. This year is the first year it is possible to look at general trends across a four-year reporting period. Downward trends over the four years in the FCO’s mean and median ordinary pay gap show that there is movement in the right direction.

The FCO ordinary pay gap is influenced by a number of contributing factors. Analysis reveals that three contributing factors are:

• lower female representation at higher paid senior grades
• the FCO’s ‘competency point’ system
• 41 vs. 42 hour per week contracts

Lower female representation at higher paid senior grades

Across the FCO, there has been an employee population shift of 2% in favour of women since 2019, reducing the gender imbalance overall (see Figure 2). However, higher female representation at the junior grades and lower female representation at the senior grades continues to impact on the FCO ordinary pay gap. Since 2019, data shows the following:

• an increase in the proportion of women at grades A1, A2 and B3. This means that more female than male employees are paid the lowest salaries
• a gender imbalance at grades C4 (56.0% male), C5 (62.3% male), D6 (58.6% male) and D7 (57.6% male) means that more male than female employees are paid the higher salaries within the delegated grades (A1 to D7)
• a gender imbalance (albeit less than last year) remains at grades SMS2 and SMS3, meaning the highest salaries continue to be awarded to male employees in greater proportion

There has been a movement towards gender balance in the organisation as a whole and by grade, with the biggest percentage shifts at A1, Apprentice, SMS2 and SMS3. With the shifts at SMS2 and SMS3, alongside a female promotion to SMS4, contributing to an overall reduction in the FCO’s mean ordinary gender pay gap. While the number of employees in SMS2 and SMS3 is relatively low in comparison to the numbers in other grades, there are more men in these higher salary grades, which impacts on the ordinary pay gap. However, the 5.4 percentage point increase in female employees at SMS3 will have contributed to the notable 1.8 percentage point reduction in the mean pay gap this year alongside the female appointment at SMS4.

There was positive movement in the last year at D6 with a 1.4 percentage point rise in females. There was a 0.6 percentage point fall in the proportion of females at D7. This could be due in part to the number of promotions to SMS1 being female (64%) leading to a rise in women leaving D7, and entering SMS1.

Figure 9 illustrates the mean gender pay gap at each grade. Where the pay gap figure is negative, the pay gap is in favour of women. While the mean ordinary gender pay gap is 6.5%, the gender pay gap at each individual grade is lower (aside from SMS4). The mean gender pay gap when broken down by grade ranges from 0.1% (D7) to 2.1% (C5), except for a SMS4 where the gap is 18.9%. The mean pay gap is less than 2% for most of the grades, a decrease from less than 4% on most grades in 2018-19 with C5 dropping from 4% to 2% this year. However, the issue is not solely the difference in pay within grades, but rather the combination of the proportion of men and women within the grades, plus the distribution of men and women across the pay scales within those grades. This is also reflective of DFID, details of which can be found in their report.

The mean ordinary gender pay gap narrowed between 2017-18 and 2018-19 for a number of grades: B3, C4, D6, D7, SMS2 and SMS3. In 2019-20 it narrowed further and became negative (in favour of women) at D6. The mean ordinary pay gap remained in favour to women at SMS1, SMS2 and SMS3 but while this favour to women grew at SMS2 and SMS3, it shrank by 0.4 percentage points at SMS1. This could be due in part to the number of promotions to SMS1 being female (64%) leading to more women than men entering SMS1 at the bottom of the pay scale.

Grades C4 and D6 contain the largest number of employees and have both had a decrease in the mean gender pay gap (to 0.5% at C4 and to -0.5% at D6).

Figure 9: Mean ordinary pay gap by grade

Grade	Mean Hourly Rate of Pay Men	Mean Hourly Rate of Pay Women	Mean Ordinary Pay Gap
A1	£11.67	£15.61	-33.7%
A2	£14.02	£13.76	1.8%
B3	£15.72	£15.60	0.8%
C4	£18.76	£18.67	0.5%
C5	£23.34	£22.86	2.1%
D6	£29.99	£30.12	-0.5%
D7	£36.13	£36.08	0.1%
SMS1	£39.68	£40.11	-1.1%
SMS2	£50.99	£51.78	-1.6%
SMS3	£65.41	£66.64	-1.9%
SMS4	£89.37	£72.51	18.9%

The graphs in Figure 10 represent the pay of all employees in the FCO, divided into four quartiles, from lowest pay (first) to highest pay (fourth). The graphs compare data from 2019 to 2020 in order to see shifts in the gender balance at each pay quartile over the last year. While there continues to be a higher concentration of women in the lower pay quartile, compared to the upper pay quartiles, there has been an increase in female representation in the fourth quartile in the last year, with a 4.0% movement towards gender balance.

Figure 10: Pay Quartiles

First (Lower) Quartile

	2019	2020
Men	47.5%	47.6%
Women	52.5%	52.4%

Second Quartile

	2019	2020
Men	54.4%	54.6%
Women	45.6%	45.4%

Third Quartile

	2019	2020
Men	59.6%	61.7%
Women	40.4%	38.3%

Fourth (Upper) Quartile

	2019	2020
Men	61.2%	59.2%
Women	38.8%	40.8%

The impact of the ‘competency point’

In 2015, the FCO introduced competency points at grades C4 and D6. The points are set at a fixed value between the minima and maxima of the range. Employees move to the competency point value after two years in those grades, having demonstrated they have met the required level of competence. The FCO ordinary pay gap has increased, in part, due to the immediate impact of this system. Although more women than men are joining the FCO in the C4 grade, increasing the female representation at this grade, they will not be eligible for the competency point pay increase for two years. Men make up a larger proportion of those on salaries at or above the competency point, having served 2+ years at the grade. There is the same pattern at D6. The result is that the male median salary is higher in comparison to the female median salary.

In 2019-20 the number of C4 employees who moved to their competency point value was comparable to that in 2018-19, falling by just 4.2%. However, the percentage of those who were female grew by 5.3 percentage points from 46.9% in 2018-19 to 52.2%. In 2019-20, the number of D6 employees who moved to their competency point value fell by 31.1% from 2018-19. The percentage who were female fell from 44.4% in 2018-19 to 41.9% in 2019-20. An increase in the female percentage of employees achieving their competency point at C4 is contributing to a levelling out of the median pay gap at that populous grade. However, the contraction of D6 population achieving their competency point, and the increasing gender imbalance within it, has slowed that levelling. Indeed these numbers are a reflection of the numbers which came through on temporary promotion 2 years earlier (mid 2017 to early 2018) in the FCO’s quarterly appointment boards, being more weighted towards women at C4 (57% female) and men at D6 (48% female).

In 2018-19, the median pay gap was 0.0% for C4 and 0.0% for D6 and in 2019-20 it moved to -1.7% at C4 and -0.8% at D6 a negative percentage meaning that the median pay gap is in favour of women at C4 and D6 this year. A shift in favour of men at B3 from -0.6% (towards women) in 2018-19 to 1.3% (towards men) in 2019-20 will have slowed progress on closing the median pay gap, particularly as B3 is a populous grade for women.

We have seen progress over the last year with the overall median pay gap reducing by 1.5 percentage points. More needs to be done to tackle the gender representation imbalance at C4, which will affect a gender pay gap, even when more women achieve competency points. At D6 the gender balance has increased marginally by 1 percentage point; again sustained action is needed to close the gender imbalance at this populous grade. The population at B3 should be monitored as a percentage increase in men at that grade may result in a wider gap.

41 vs. 42 hour per week contracts

Full-time conditioned hours for employees in London employed on or before 31 December 2013 are 41 hours gross (including five hours paid meal breaks) per week. Full-time conditioned hours for employees in Hanslope Park, Milton Keynes, or elsewhere in the United Kingdom outside of London, employed on or after 1 January 2014, are 42 hours gross (including five hours paid meal breaks) per week. This change followed the introduction of modernised terms and conditions across the Civil Service. Consequently, those employees on 41-hour contracts earn a higher average hourly rate than those on a 42 hours contract. ‘National’ officers (employees working outside of London but still in UK) are employed on 42-hour gross contracts, as opposed to 41 hours gross contracts.

Many officers who work in London on 41 hours gross contracts are also entitled to London Location Allowance (LLA) of £5,000 per annum pro rata. OLLA (Outer London Location Allowance) is available to employees in Milton Keynes / Hanslope Park at a rate of £1,750 per annum. This produces a double positive result, as officers on 41 hour contracts have a higher hourly average salary plus LLA.

Analysis shows that in 2019-20 there remained a higher proportion of women on 42-hour contracts in the populous lower grades (A2, B3 and C4) in line with the previous 2018-19 period. In addition there remains a higher proportion of men at C5, D6 and D7. Both continue to be a contributing factor to the median gender pay gap. The numbers of employees are highest at grades C4 and D6 and there is a significantly higher proportion of men at these grades. This continues to contribute to the gender pay gap as more men than women are in the position of having higher average hourly salaries.

Early analysis shows that while the overall (London and National) A1 to D7 population grew in line with the rest of the FCO from 2018-19 to 2019-20, the National employee population growth at A1 to D7 accounted for a large percentage share. Whilst numbers declined and plateaued respectively at A1 and A2, National employee population growth was significant at B3, C4, C5 and D6. The A1 to D7 National employee population growth gender split is in line with the National employee population gender split, in favour of women.

However, given the gender imbalance towards women in the National employee population, plus the lower hourly rate, consideration needs to be given to existing and future (FCDO) processes, which inadvertently increase the gender imbalance, particularly at the populous lower hourly rate National grades, and the likely effect on the gender pay gap.

Regional data is relevant in understanding the gender pay gap when we consider the gender split regionally. This remains a constant contributing factor to the gender pay gap and will continue to do so until a gender balance is achieved within the London and National split.

Explaining the FCO’s bonus pay gap

In 2019-20 the FCO paid bonuses to 34.4% of female employees and 39.9% of male employees. The majority of FCO bonuses are paid as part of the annual pay settlement to high performing employees. In 2019, ‘end year’ bonus values were fixed cash amounts set by grade (i.e. employees in the same grade receive the same level of bonus). Individual Directorates also run in-year recognition schemes that award small bonuses for specific examples of exceptional performance, which contribute towards Directorate/Post objectives and/or to the corporate good. The data in this report includes both ‘end year’ and in-year bonus values. 2020 data shows that there has been an overall decrease in the percentage of employees awarded a bonus, compared with 2019. This decrease affects both men (9.9 percentage point decrease) and women (9.2 percentage point decrease).

In 2019-20 the FCO saw an increase on both its mean and median gender bonus gaps.

Figure 11: Bonus gender proportions

Grade	Men	Women
A1	Percentages suppressed due to small numbers	Percentages suppressed due to small numbers
A2	40%	28.1%
B3	41.9%	34.2%
C4	36.3%	29.2%
C5	44.4%	39.4%
D6	38.3%	38.7%
D7	38.1%	39.6%
SMS1	39.6%	36.7%
SMS2	56.9%	57.1%
SMS3	76.2%	62.5%
SMS4	Percentages suppressed due to small numbers	Percentages suppressed due to small numbers

With the exception of D6, D7 and SMS2, a higher proportion of men received a bonus in other grades. Given that the value of bonuses is positively correlated to seniority; men receive proportionately higher bonuses than women. However, it is encouraging to see that women have overtaken men in proportions of those awarded bonuses at D6 and D7, a shift from 2018-19. The greater volume of employees at grade C4, where we see a balance towards men, contributes to the bonus pay gap.

The FCO bonus pay gap is influenced by a number of contributing factors. Analysis reveals that three contributing factors are:

• a contraction in the ‘end year’ (Tranche 1) bonus population as a whole in 2019-20, with the contraction concentrated mainly at the lower grades which hold a gender imbalance towards women
• a continued gender imbalance towards women in part time working at the FCO means that more pro-rated (and so lower) ‘end year’ bonus values are awarded to female rather than male employees
• a gender imbalance towards men in the award of in-year awards

Contraction in the ‘end year’ bonus population

In the 2019-20 period the Tranche 1 population (those awarded an ‘end year’ bonus) in the delegated grades shrunk overall by 5.1% compared to the 2018-19 period. Following a civil service performance management review, Cabinet Office asked Departments to adopt a new framework, with more flexibility to allow departments to design their own systems, this included the removal of guided distribution for delegated grades in May 2018. The expectation was that the number of Tranche 1 awards may increase. A communications campaign encouraged managers to ensure that performance differentiation and relative assessment remain core elements of our performance management approach.

The Band A Tranche 1 population shrunk by 14% and the Band B Tranche 1 population shrunk by 24%. Those two drops accounted for nearly all of the 5.1% reduction overall. Within those drops at Band A and Band B the gender split in bonuses rewarded remained fairly constant at 60% female 40% male split, with females gaining a few percentage points in 2019-20. The FCO has proportionately more women at Band A (59% female in 2019) and Band B (58% female 2019).

A reduction in Tranche 1 at those two grades, more populated by women, has likely contributed to the bonus pay gap. Additionally, the Band A and Band B appraisal cycle runs from January to December and Band C and D from April to March. The removal of Guided Distribution in May 2018 would not have affected Tranche ratings until January and March 2019 respectively and the ‘end year’ bonus awards in autumn 2019 which is why this did not impact the 2018-19 reporting period.

Part-time working and pro rata ‘end year’ bonus awards

A continued gender imbalance exists towards women working part-time at the FCO. This means that more pro-rated (and so lower) ‘end year’ bonus values are awarded to female rather than male employees. The part-time population is small at the FCO at just 3.9%, but with 87.4% of part-time employees female, a gender imbalance exists.

The highest numbers of part-time employees are at A2, B3, C4 and D6. At A2 part-time women make up 12% of the female A2 population and 7% of the overall A2 population. At B3 part-time women make up 12% of the female B3 population and 4% of the overall B3 population. These are the two grades where the Tranche 1 population shrank in 2019-20. With these part-time, predominantly female, employees receiving a pro-rata bonus value this would impact, albeit marginally, the mean bonus gap in particular.

In 2019-20 3.6% of those awarded an ‘end year’ bonus were part-time, a slight rise on 3.0% in 2018-19, but still below the 3.9% baseline for part-time employees. The numbers of those working less than 2.5 days per week and awarded an ‘end year’ bonus in 2018-19 and 2019-20 are too small to report.

Gender imbalance towards men in the award of in-year awards

Figure 12: Median in-year award payments by grade

Grade	Men	Women
A1	£0	£200
A2	£250	£150
Apprentice	£625	£500
B3	£250	£250
C4	£175	£175
C5	£250	£150
D6	£175	£175
D7	£250	£625
Median	£200	£185

The in-year award data reveals that at every grade apart from A1 and D7 the median point for men was equal to or above that of women.

The mean and median in-year award gaps are both 8%. In-year awards accounted for less than a quarter of bonuses paid in 2019-20. The 8% gaps contribute to the FCO’s median and mean bonus gaps but given they are both 8%, it is likely that the widening of the median bonus gap in particular is more attributed to the contraction in the number of ‘end year’ bonus awards at Bands A and B.

In 2019-20 just 1.4% of employees receiving an in-year award were part-time, below the 3.9% baseline for part-time employees.

55% of upper outliers (in-year awards above £500) were awarded to men. Conversely, 60% of those receiving in-year awards of less than £100 were women, rising to 67% for £50 or less. These upper outliers being proportionately more men, and lower amounts proportionately more women, contributes to the mean bonus pay gap.

Progress made

Following publication of the FCO Gender Pay Gap Report 2018 to 2019 we can report:

• Dame Karen Pierce became the first woman to be appointed to the position of UK Ambassador to the USA in February 2020; and thus the first woman at SMS4.
• In 2019 the proportion of women promoted to SMS1 rose to 64%.
• We recruited 68 Fast Stream entrants in 2019-20, of which 60.3% are female.
• We recruited 3 communications apprentices, 7 finance apprentices and 33 business administration apprentices through our external recruitment and through the Civil Service Government Communication Service scheme, of which 91% are female.
• FCO Women and HR agreed a refreshed 10-point gender action plan which includes creating a culture in which women can fully utilise their skills and expertise, steps to achieve gender parity through promotion and appointments, and encouraged to fulfil their potential.
• The FCO Board, HR and FCO Women continued to work together on promoting inclusive behaviours in the workplace and tackling inappropriate ones.
• FCO Women continued to run multiple masterclasses to support members’ informal learning.
• The FCO continues to promote international action on gender equality through the actions of our dedicated Gender Equality Unit.

Taking action

This is the last year that the FCO will report on gender pay gap, due to the merger with DFID. We recognise that there will still be more to do as FCDO.

FCDO vision is to be the most inclusive organisation in Government, which:

• leverages difference to increase innovation and enhance productivity
• encourages talented people from all backgrounds, perspectives and ways of thinking to join us and thrive, fostering inclusion at all levels
• treats each other fairly, respectfully and with kindness and allows everyone to speak up when this doesn’t happen

Our Senior leaders will continue to be committed to closing the gender pay gap.

As part of the newly created department, the GPG will also be at the forefront of the decisions we take in developing our future approach to pay and reward, recruitment, learning and development and career opportunities for all. Our aim will be to make decisions that are positive towards continuing to close our gender pay gap. This will be part of our broader People Strategy which will be developed over 2021.

Pay Policy

In December 2016, the FCO Board agreed its Workforce Strategy, which provides the strategic framework and direction for the FCO workforce between 2016 and 2020. Its Pay and Benefits Principles emphasise the FCO’s commitment to offering competitive reward packages that enable the FCO to recruit, retain and motivate staff with the skills and qualities that will continue to be needed to deliver the FCO’s business objectives. Ensuring equal pay for equal work is one of these principles.

As part of the FCO’s governance process for making changes to pay policy, any potential effects for the gender pay gap and equal pay risks are taken into account. Specific activities which are helping to reduce the FCO’s gender pay gap are:

• in August 2019 the FCO implemented the second stage of a new pay structure for the delegated grades (A1 to D7), the first stage was implemented in April 2018. One of the aims of the new structure is to shorten FCO pay ranges, which will reduce the variation in salaries by grade and which will in turn improve the FCO’s mean and median gender pay gaps
• a Senior Pay Committee was created in April 2017 to improve remuneration governance for SCS and SMS staff. One of its first decisions was to change the approach for SCS/SMS bonuses so that they are the same value regardless of grade. This remains current practice and means that all staff who are awarded a bonus receive the same amount irrespective of gender
• in September 2020 the FCO merged with DFID to form the Foreign, Commonwealth & Development Office (FCDO). This new department is working to align its Pay & Reward offer to its staff – ensuring a positive impact on future gender pay gap reporting is central to this work