Employers will be legally required to include salary information in job adverts under plans announced by the government. The 'say what you pay' law is designed to stop jobseekers from having to apply for roles that may not offer the pay they need.
Estimates from the CIPD suggest that only 41% of employers always publish salary ranges for roles, and fewer than one in five always publish specific salaries.
Prime Minister backs pay transparency
Prime Minister Andy Burnham said: '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.'
There is no set date for the changes to come into force, with the government saying only that legislation would be brought forward 'as soon as possible'. However, the PM called on businesses to get ahead of the law change by putting salaries on job adverts now.
Business Secretary welcomes change
Business Secretary Jonathan Reynolds told Metro the measure would give everyone 'a far chance when starting their career'. He said: 'Simple barriers can get in the way, such as employers not saying how much a job pays.'
'People deserve to know what they could earn before spending time applying for a job, so we're changing the law to make sure pay information is included in job adverts, helping more people get a foot in the door.'
Union support and wider measures
The move has also been welcomed by the Trades Union Congress, with General Secretary Paul Nowak pointing out that secrecy around salary can lead to lower salary offers for women, minority ethnic or disabled workers. He added: '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.'
'Why should a candidate be expected to go through a lengthy application and interview process without knowing whether the job will actually pay them enough to get by? It's absolutely right that the government clamp down on this disrespectful practice.'
Meanwhile, the government has also announced that tech company Siemens Mobility is setting up a work experience programme which will reach 10,000 young people over three years. Reynolds said the new offer will help them 'land good jobs down the line' by providing 'a bit of experience and confidence'.
Further measures to help young Brits get into work are expected to be set out in the Milburn Review, which is due in the coming weeks. Former health secretary Alan Milburn was asked to look into solutions for the crisis of young people not in employment, education or training (NEET), which Burnham has called an 'economic catastrophe and moral failure'.
