The Equalities & Human Rights Commission made a business case for greater equality for women, after its report revealed huge differences between men’s and women’s pay in the financial services sector.

‘For business to thrive in the new economy it simply can't afford to recruit and reward in the way it has done in the past,’ said commission chair Trevor Phillips.

‘By bringing down arbitrary barriers, and changing practices that, intentionally or not, inhibit women's success, financial firms have the chance to boost morale, bring on new talent, and maximise the potential of their existing employees.’
The Equalities & Human Rights Commission said the gender divide was ‘entrenched’ by recruitment patterns, with women starting at companies on lower salaries and then being left behind throughout their career.

On average, bonuses for women were £2,875, compared with £14,554 for men, the Commission found.

Equality Minister Harriet Harman, who commissioned the report, said: ‘Despite many actions taken by the Government since 1997, inequality and discrimination still exist, which is why we are introducing tough new measures in our Equality Bill including gender pay reporting and proposals to ban secrecy clauses which are particularly prevalent in financial services.’

The EHRC called for pay audits, and said companies should appoint a board member specifically to drive change on the issue.

The role of women in the City will be the subject of a new inquiry launched by the Treasury Committee this autumn.

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