Prime Minister Andy Burnham has said employers will be legally required to include salary details in job adverts, urging firms to publish pay information now rather than wait for legislation that the government says will be brought forward 'as soon as possible'.
The government said the change would help jobseekers, particularly those applying for their first job, and could help prevent pay discrimination. “Whether you're a young person starting out or a parent trying to support your family, you should know what a job pays before spending your time and effort applying for it. That's why we will make it a legal requirement for all employers to say what you pay,” he said. The prime minister also called for “businesses to open more doors and give young people the experience and confidence to take that first step into the world of work”.
The announcement follows a Cabinet Office consultation into pay and reducing discrimination over the summer, which the government said drew "overwhelming support", with 94% of respondents backing greater transparency. It comes a week after the Equality and Human Rights Commission said employees should legally be able to find out what their colleagues are earning; the commission also recommended that employers be required to respond to questionnaires about colleagues' pay and be prevented from asking about current salary when making an offer. The move is part of government efforts to reduce the nearly one million young people not in education, employment or training, known as "Neet", ahead of the final report of the Milburn Review into youth inactivity, which is due in the coming weeks.
The proposals mirror measures being introduced in the European Union, where employers must disclose the initial pay or range for new roles. The government said publishing salary details upfront could "expose unjustified differences in pay, give workers greater confidence to challenge discrimination and prevent disagreements over pay escalating into disputes". It said further details on what information will be required and how the legislation will be enforced would be set out "in due course".
The move was welcomed by TUC general secretary Paul Nowak, who said anyone searching for a job knows “how frustrating it is to read 'competitive salary' instead of just saying how much they'll be paid”. He said it was “absolutely right that the Government clamp down on this disrespectful practice”, and called for employers also to be required to list flexible working options in every posting. Penny East, chief executive of the Fawcett Society, said salary secrecy had “put women at a disadvantage”, and requiring publication was “a significant step towards making work fairer for women and tackling the gender pay gap”. Nishi Mayor of the Youth Futures Foundation said clear pay information could help young people make informed decisions and could mean more applications from more suitable candidates.
However, CIPD chief executive Neil Carberry said that while in principle giving salary details was "a good thing", in practice it was "more complicated". "There isn't always a single fixed figure, and employers will want to set pay based on a candidate's skills, experience and potential," he said, arguing that drafting job adverts is "best left to good employer practice rather than government regulation".
According to jobs site Adzuna, 51% of adverts on its site in September included salary information, but the proportion has been falling in recent years. Co-founder Andrew Hunter said being open about pay "should be the norm, not the exception", adding that employers who put a salary on an advert "attract more applicants, and better-suited ones". CIPD research found 41% of employers always included salary information in job adverts, while around 27% never did.
The government's announcement comes amid criticism of its handling of the jobs market: after last week’s Budget, Conservative leader Kemi Badenoch claimed “jobs have been destroyed by Labour”, while Liberal Democrat leader Sir Ed Davey said a lack of economic growth was behind a lack of jobs and opportunity, and said British business was being held back above all by “the terrible damage of the Conservative Brexit deal”. Vacancies fell by an estimated 21,000 to 691,000 in the three months to September, according to the Office for National Statistics.
Analysis
Why This Matters
- Jobseekers, especially young people and first-time applicants, would know a role's pay before investing time in applications and interviews.
- Pay transparency is tied to efforts to reduce pay discrimination and the gender pay gap, with the Fawcett Society arguing salary secrecy has disadvantaged women.
- The policy is part of a wider government push to cut youth inactivity, with close to a million young people classed as Neet and the Milburn Review report due imminently.
Background
The UK currently has no legal requirement for employers to publish salary details in adverts, and employers may ask applicants about their current salary, though applicants are not obliged to answer. The government's plan follows a summer consultation in which it said 94% of respondents backed greater transparency, and it mirrors European Union rules that will require employers to disclose the initial pay or range for new roles. CIPD research has found that while many employers publish salaries, a significant minority never do, and some published ranges are very wide.
Key Perspectives
Andy Burnham (Prime Minister): says making salaries a legal requirement will mean jobseekers "know what a job pays before spending your time and effort applying for it".
TUC general secretary Paul Nowak: welcomes the move, calling it "absolutely right" to clamp down on the "disrespectful practice" of vague salary listings, and wants flexible working options in every posting.
CIPD chief executive Neil Carberry: says giving salary details is "a good thing" in principle, but pay-setting is "more complicated" and adverts are "best left to good employer practice rather than government regulation".
Fawcett Society chief executive Penny East: says publishing salaries is "a significant step towards making work fairer for women and tackling the gender pay gap".
Youth Futures Foundation's Nishi Mayor: says clear pay information can help young people make informed decisions and improve the talent pipeline for employers.
Conservative leader Kemi Badenoch: claims "jobs have been destroyed by Labour" and that businesses need cheaper energy, flexible labour markets and lower taxes.
Liberal Democrat leader Sir Ed Davey: blames "a lack of economic growth" and "the terrible damage of the Conservative Brexit deal" for holding back British business.
What to Watch
- The Milburn Review's final report into youth inactivity, due in the coming weeks, and how it shapes the government's jobs agenda.
- The government's promised details on what salary information will be required and how the legislation will be enforced, set to be announced "in due course".
- Whether the share of adverts listing salaries rises before the law arrives, after Adzuna found the proportion has been falling in recent years.
Checked
12 claims in this story checked against 3 sources: 12 supported.
Show each claim
- SupportedEmployers will be legally required to publish salary details in job adverts.News and communications from Prime Minister's Office, 10 Downing Street (Number 10): “new plans announced by the Prime Minister to legally require employers to publish salaries in job adverts.”
- SupportedThe prime minister urged businesses to publish pay information now rather than wait for the law.News and communications from Prime Minister's Office, 10 Downing Street (Number 10): “In the meantime, the Prime Minister is calling on all businesses to say what they pay on job ads now, rather than wait for the law to change.”
- SupportedThe government said legislation would be brought forward as soon as possible.BBC News: “The government is planning to make pay details compulsory in adverts, with legislation on the issue being brought forward "as soon as possible".”
- SupportedBurnham said people should know what a job pays before spending time and effort applying.News and communications from Prime Minister's Office, 10 Downing Street (Number 10): “Whether you’re a young person starting out or a parent trying to support your family, you should know what a job pays before spending your time and effort applying for it.”
- SupportedBurnham called for businesses to open more doors and give young people experience and confidence to take their first step into work.News and communications from Prime Minister's Office, 10 Downing Street (Number 10): “We also need businesses to open more doors and give young people the experience and confidence to take that first step into the world of work.”
- SupportedThe government said 94% of consultation respondents backed greater pay transparency.BBC News: “the government said there had been "overwhelming support" for greater transparency, with 94% of respondents backing the move.”
- SupportedThe Equality and Human Rights Commission said employees should legally be able to find out what their colleagues earn.BBC News: “Last week, the Equality and Human Rights Commission (EHRC), said publishing salaries in job adverts would be a "positive step". It also said bosses should be required to respond to questionnaires about colleagues' pay”
- SupportedThe TUC’s Paul Nowak said it was frustrating to see “competitive salary” instead of being told how much a job would pay.The Independent UK: “Anyone who’s searched for a job knows how frustrating it is to read ‘competitive salary’ instead of just saying how much they’ll be paid.”
- SupportedFawcett Society chief executive Penny East said salary secrecy had put women at a disadvantage.The Independent UK: “For too long, salary secrecy has put women at a disadvantage, leaving them negotiating in the dark and making it much harder to challenge unfair and unequal pay.”
- SupportedCIPD chief executive Neil Carberry said there is not always a single fixed salary figure and employers will want to set pay based on a candidate’s skills, experience and potential.BBC News: “"There isn't always a single fixed figure, and employers will want to set pay based on a candidate's skills, experience and potential."”
- SupportedAdzuna said 51% of adverts on its site included salary information in September, and that the proportion had been falling in recent years.BBC News: “According to data from UK jobs website Adzuna, 51% of the adverts on its site in September had salary information, but the proportion has been falling in recent years.”
- SupportedVacancies fell by an estimated 21,000 to 691,000 in the three months to September, according to the Office for National Statistics.The Independent UK: “the number of vacancies fell by an estimated 21,000, to 691,000, in the three months to September, data from the Office for National Statistics shows.”