NHS Oldham CCG

Oldham CCG and GMSS Gender Pay Gap Report 2019

Since the Equality Act 2010 (Specific Duties) Regulations 2011 (SDR) came into force on 10 September 2011, there has been a duty for public bodies with 150 or more employees to publish information on the diversity of their workforce. Although these regulations did not require mandatory Gender Pay Gap (GPG) reporting, the Government Equalities Office (GEO) and the Equality and Human Rights Commission (EHRC) provided guidance that made it clear that employers should consider including GPG information in the data they already publish.

In a change to the legislation (Equality Act 2010 (Specific Duties and Public Authorities) Regulations  2017), the government made GPG reporting mandatory so that all public sector employers with more than 250 employees have to measure and publish their gender pay gaps. It has also clarified the ways in which the GPG should be calculated.

An employer must comply with the regulations for any year where they have a 'headcount' of 250 or more employees at 31 March. The Oldham CCG/GMSS workforce at 31 March 2018 for purposes of this calculation was 432 (220 women and 212 men).

All staff with a contract (including self-employed people contracted to do work or provide services) are included. The figures used in this report have been calculated using the Electronic Staff Record (ESR) records. However, certain exclusions were made. Staff who at that time were receiving less than their normal rate of pay because of sickness, maternity or adoption leave have not been included.

We must publish the results on our website and the appropriate government website within 12 months. This means that we must publish our results by 31st March 2019.

It is important to note that the Gender Pay Gap is different from 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, whereas the gender pay gap shows the difference in the average pay between all men and women in a workforce. Within the NHS, equal pay is safeguarded by the Agenda for Change process. 

Requirements

According to the requirements of the Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017, we must calculate:

  • the hourly rate of ordinary pay relating to the pay period in which the snapshot day falls (31st March 2018)
  • the difference between the mean hourly rate of ordinary pay of male and female employees, and the difference between the median hourly rate of ordinary pay of male and female employees (see Schedule 1, paragraphs 8 and 9)
  • the difference between the mean (and median) bonus pay paid to male and female employees (see Schedule 1, paragraphs 10 and 11)
  • the proportions of male and female employees who were paid bonus pay (see Schedule 1, paragraph 12)
  • the proportions of male and female employees in the lower, lower middle, upper middle and upper quartile pay bands by number of employees rather than rate of pay (see Schedule 1, paragraph 13).

These conclusions are shown below.

Findings

The mean hourly rate is calculated by adding the hourly rates for (eg) all female staff together and dividing the total figure by the number of staff in the category. It can be seen that the mean hourly rate for male staff is £21.95 (down from £22.71 last year) and the mean hourly rate for female staff is £19.08 (very slightly down from £19.12 last year). This means that the difference is £2.87 (down from £3.55 last year), giving a mean gender pay gap of 13.08% (down from 15.64% last year).

 

Figure 1 Mean and Median Hourly rates

The median salary is the salary of the person earning the middle rate of pay. It can be seen that the median female rate of pay is £16.21 (up from £14.78 last year) and the median male rate of pay is £1674 (very slightly down from £16.77 last year). This means that the difference in median rates is £0.53, giving a median gender pay gap of 3.16 (down from 11.88% last year).

 

Figure 2 Staff per pay quartile

The number of male and female staff per pay quartile is shown at figure 2. The total numbers of staff per quartile are not the same. Because of the NHS pay provisions under Agenda for Change, many staff are on the same rate of pay, so could not be split into separate quartiles. They have therefore been included in the same quartile as other staff members on the same rate of pay, resulting in apparent anomalies.

It can be seen that 105 male staff fall into the lower two quartiles (49.5% of the male staff, as opposed to 50.5% of female staff). This difference is lower than in the previous year; however in the lowest quartile there are twice as many women as men in terms of numbers, making 32.7% of total female staff in the lowest quartile as opposed to 17% of total male staff.

 

Figure 3 Hourly rate per Quartile

Figure 3 shows the hourly pay rates per quartile. If we compare this with the hourly rates per Agenda for Change pay band at 31st March 2018 (see figure 4 below; these figures were correct at 31st March 2018, before the pay deal took effect from 1st April 2018) we can see that:

  • the maximum rate in Quartile 1 falls at the bottom end of Agenda for Change band 5
  • the top of Quartile 2 falls at the bottom end of band 7
  • the top of Quartile 3 is at the top of band 7
  • the top of Quartile 4 falls into Very Senior Manager (VSM) and other non-Agenda for Change pay bands.

It can also be seen that:

  • the median male hourly rate falls on the second spine point of band 7
  • the median female hourly rate falls on the first spine point of band 7
  • the mean female hourly rate falls in the middle of band 7
  • the mean male hourly rate falls in band 8a

Action will be taken to understand the fuller picture and encourage the development of women into higher-banded roles and to promote the recruitment of men at lower grades.

 

Figure 4 Hourly rate per Agenda for Change pay Band

Band 1

Band 2

Band 3

Band 4

Band 5

Band 6

Band 7

Band 8A

Band 8B

Band 8C

Band 8D

Band 9

£7.88

£7.88

£8.68

£9.93

£11.32

£13.59

£16.21

£20.67

£24.08

£28.98

£34.39

£40.62

£8.01

£8.01

£8.96

£10.15

£11.60

£14.13

£16.74

£21.37

£24.81

£29.77

£35.38

£42.58

 

£8.24

£9.28

£10.51

£12.07

£14.70

£17.34

£22.23

£26.07

£30.79

£36.85

£44.62

 

£8.46

£9.38

£10.87

£12.55

£15.15

£18.20

£23.09

£27.52

£32.23

£38.65

£46.77

 

£8.68

£9.64

£11.21

£13.07

£15.68

£18.72

£24.08

£28.98

£34.39

£40.62

£49.01

 

£8.96

£9.93

£11.32

£13.59

£16.21

£19.32

£24.81

£29.77

£35.38

£42.58

£51.36

 

£9.29

£10.15

£11.60

£14.13

£16.74

£19.98

 

 

 

 

 

 

 

 

 

£14.70

£17.34

£20.68

 

 

 

 

 

 

 

 

 

 

£18.20

£21.37

 

 

 

 

 

 

One reason for the much higher mean pay rates than median pay rates, especially for male staff, may be the relatively high numbers of staff paid at VSM or higher non-Agenda for Change rates. These can be seen at figure 5 below. Numbers under 10 have been replaced by # to avoid identification of individuals, though the numbers have been notified internally.

 

Figure 5 Male and female staff by higher non-Agenda for change pay rates

 

Head Counts

Percentages

Quartile

Female

Male

Female %

Male %

1

#

#

25.0

75.0

2

#

#

14.3

85.7

3

#

#

25.0

75.0

4

#

#

42.9

57.1

 

Bonus Payments

In 2017/18, Women's median bonus pay was 50% lower than men’s median bonus pay, and women’s mean bonus pay was 50% lower than men’s mean bonus pay. Bonuses were paid to 0.9% of women and 0.9% of men.

 

What does this mean for us?

The mean gender pay gap is 13.08% (down from 15.64% last year) and the median gender pay gap is 3.16% (down from 11.88% last year). This is because the joint workforce now has a slightly increased number of male staff in lower-banded positions, and although there are more women than men in the lowest pay quartile, there are also now more women than men in the highest pay quartile. The overall number of male and female staff is roughly similar, which means that the effect of an individual very high or very low salary is lessened.

Although the percentage of male/female staff in the lower two pay quartiles is similar, (49.5 male/50.5 female), the preponderance of women in the lowest pay quartile suggests that there is work to do in upskilling women to take on higher-banded positions, and in attracting men to apply for entry-level positions.

Within Pay Quartile 4 there is a large span of hourly rates, including the high, non-agenda for change rates. These are paid to the part-time Clinical and Non-Executive members of the Governing Body of the CCG. These Directors are mainly male, so there is work to do to encourage more women to seek appointment/election to theses posts.

Conclusion

Oldham CCG is pleased to report on the gender pay gap to show progress on our commitment to fairness and equity in all aspects of our work. We are fully supportive of equality of opportunity within our workforce; and although we have made improvements that reflect actions taken during the year,

We recognise that there is further work to be undertaken to achieve that equality of opportunity. We acknowledge that there could be greater representation in the senior clinical roles which appear to drive the greatest variances in this report.

We welcome this report and the issues and opportunities for learning that it presents. Our first priority will be to understand the reasons for the improvements and then assess the actions we took. We will finalise our next actions by June 2019; a high level action plan can be seen in our Annual Data Publication.

We hope that, over time, and by taking account of some of the issues highlighted in this report, the gender pay gap will further reduce.