Prime Minister Andy Burnham will introduce new laws requiring employers to publish salaries in job adverts. The Government says too many jobseekers are still expected to apply for roles without knowing what they pay.
It is estimated that less than half (41%) of employers always publish salary ranges and only 1 in 5 (18%) always publish specific salaries. The Government will mandate job adverts to 'say what you pay' by making publishing salaries a legal requirement and backing employers who are already doing so.
Addressing pay inequalities
The change is argued to tackle a common frustration for jobseekers, particularly young people applying for their first job, who can still be asked to apply without knowing what they will earn, while also helping to address pay inequalities that can disadvantage women.
The Government says it will bring forward legislation as soon as possible. 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.
The changes are part of the Government’s wider drive to get more young people earning or learning, break down barriers to work and open up more opportunities to help young people get a foot in the door. Further reforms will follow the final report of the Milburn Review into youth inactivity, due in the coming weeks.
Work experience push
The Government is also joining forces with what it has labelled a "growing movement of businesses" creating more work experience opportunities, helping to deliver its ambition of 200,000 additional placements for 14–16-year-olds.
Siemens Mobility is the latest major employer to step up, with its new work experience programme creating more than 3,300 opportunities every year and reaching 10,000 young people over three years. Combining digital learning with hands-on experience, young people will meet engineers, tackle real-world challenges and see how advanced manufacturing, AI and digital technology are transforming Britain’s railways.
To mark the launch, the Prime Minister will join children for a national science lesson with thousands more taking part online. Through practical challenges and demonstrations, pupils will meet Siemens Mobility apprentices and engineers and discover where studying science and technical subjects could take them. The Government is also developing new vocational and technical routes to turn that early inspiration into a clearer path from classroom to career, giving young people the skills and experience employers need.
Reactions to the announcement
Mr 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.
"But breaking down barriers is only one part of the job. 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. It’s fantastic to see Siemens Mobility doing exactly that, creating 10,000 opportunities in engineering and technology and inspiring thousands more children through its national science lesson."
Penny East, Chief Executive of the Fawcett Society, said: "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. Requiring employers to publish salaries in job adverts is a significant step towards making work fairer for women and tackling the gender pay gap.
"Fawcett has long campaigned for greater pay transparency. The decision taken by government today is real progress. Women will no longer have to make decisions about their financial futures based on vague promises or unclear terms."
Nishi Mayor, Director of Employer Engagement & Partnerships, Youth Futures Foundation, said: "With one in eight 16-24 year olds currently not in education, employment, or training, it is right and important that Government is consulting with employers to help make the path into work smoother for young people by removing barriers to entering the workplace.
"We know from our work trialling real-world practices around recruiting and retaining young people with trailblazing employers that too many young people struggle to access opportunities when they are looking for jobs. Providing clear information about pay can help young people make informed decisions about employment opportunities, which for employers could mean more applications from more suitable candidates, ensuring they have the talent pipeline they need."
