The governments lack of action about gender stereotypes in schools has contributed to women’s pay failing to catch up with men’s according to a report by the Women and Work Commission.

The group found that the pay gap between men and women has risen from 21.9% in 2007, to 22.6% this year, as, three years after the initial report, women are still being pushed into ‘traditional jobs’.

They have asked for the problem to be tackled in careers advice in schools: “The government is committed to tackling inequalities in the workplace and progress has been made across the public sector and in helping women get the skills and training they need.

“But ministers must match commitment with fundamental change that will make a real difference – starting in our schools,” said the commission’s chair, Baroness Margaret Prosser.

Minister for women and equality, Harriet Harman said the government was “acting across the board” to tackle the gender divide.

Disappointed

She added that they will: “ban secrecy clauses in employment contracts so that women can challenge unfair pay.

“And we will encourage business to report on gender pay, but let us make no mistake: if voluntary measures do not work we will take stronger measures to ensure equal pay for women.”

It is said that good progress is being made in key areas such as childcare and flexible working, but the commission is “disappointed” with the lack of overall progress. It says that the gender pay gap still “stubbornly persists despite monumental changes in women’s position in the workplace”. More needs to be done to achieve quality flexible and part time work.

Breaking down the stereotypes needs to be done so that girls are not funnelled into what it calls the ‘five c’ careers – caring, cashiering, clerical, cleaning and catering – where pay tends to be lowest.

Baroness Prosser said: “We need to make our schools the nurturing ground for ambition so that everyone has the opportunity to use their talents to the full.”

Urgent Changes Needed

43 recommendations were put forward, including: work experience placements for girls in occupations where traditionally women are not well represented; buddy programmes to team girls together on placements in non-traditional sectors to increase confidence; and careers advisers training in challenging gender and socio-economic stereotyping for every school.

Anna Mann, senior partner of headhunters MWM Consulting and leader of the Women on Board initiative said: “Most companies are crying out for qualified female candidates, but the fact is that there are still too few women with the experience to take on these roles.

“What women need is support to develop the experience and networks they will need to step into senior roles later down the line.”

TUC’s general secretary Brendan Barber described the report as a “stern wake-up call” to anyone who thought the pay gap was near an end.

Representative of Strategy at the Equality and Human Rights Commission, said the report highlighted that “urgent changes” need to be made.

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Richest 16 Times Greater Wealth Than Poorest

Despite efforts to bridge the gap, the hole between the rich and poor in the UK remained big in 2007-8 according to official statistics from the Office for National Statistics (ONS).

The top fifth richest people in the UK apparently have 16 times greater wealth before tax and benefits than the poorest fifth of the population, around £72,000, compared to around £4,500.

The last three years has seen a widening inequality in disposable income as well as an fast increase in investment income among higher earners compared to the country’s poorest.

The ONS also said there has been a rapid rise in inequality in the late 80’s. Though this hasn’t been reversed, it has levelled off. The report stated: “During the 1990s and 2000s, there were periods of both rising and falling equality, but the level of inequality remained high by historical standards.”

The effect of taxes and benefits narrows the gap between the two extremes. Once these are taken into account the final income for the top fifth of homes is £52,400, and the bottom fifth is £14,300.

Single Parents & Pensioners Benefit

Single parent also gain a lot from benefits. Before benefits, the average household income of a single parent is £11,000 per year, afterwards it is £22,900.

Also, most non-retired households pay more in tax than they receive in benefits, but those with children benefitted more than those without.

Pensioners also have a higher household income with benefits than without. An increase of £9,100 to £22,200 after benefits are added and tax deducted.

The bottom two-fifths of income levels receive 57% of all benefits such as Income Support, Pension Credit and Child Benefit. Such benefits make up 58% of the income of the poorest fifth of the population and 2% of the richest fifth.

The richest members of the country get paid a bigger proportion in direct taxes link income tax, while the poorest have to pay higher indirect taxes such as VAT.

How Does This Compare To Previous Research?

State health and education are known as benefits in the ONS statistics. They calculated that the financial equivalent of these benefits is £7,500 for the poorest fifth and £4,100 for the top fifth.

This means pensioners and households with children were more likely to receive these services.

These findings contradict research by the Organisation for Economic Co-operation and Development (OECD) last October which said that the decrease in inequality in Britain has been ‘remarkable’ since 2000.

However, the report says that the UK still has one of the highest income inequalities in the developing world.

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Concerned

Chancellor Alistair Darling is to quiz bank bosses over how much small firms are charged for loans after he says he is very concerned that their rates may be too high.

He is worried that the cost of loans has risen even though the UK’s interest rates currently stand at a record low of 0.5%.

He also said that banks had a duty to restore lending levels, adding that the government didn’t save the banking sector out of “some charitable act.”

He said: “The public now understand it if they [the banks] don’t seem to be doing their part.

“I want them to rebuild their balance sheets… but at the same time, because of the particular circumstances we’re now in, because of the fact we’ve got this recession, we also need them to lend money. And that’s why we re-capitalised them to do that, and that means they’ve got to live up to the promises that they made.”

Rates Reflect Wholesale?

Many banks, including Lloyds (including Halifax and the Bank of Scotland), and the RBS (which includes NatWest and Northern Rock) received emergency funding from the government after the credit crunch began.

The Chancellor made these comments after an official report made by Moneyfacts said banks had increased the interest rates they charged for personal mortgages by nearly four times the amount in recent months despite the base interest rate remaining at 0.5%.

Chief executive of the British Bankers Association, Angela Knight, said banks had to pay a lot more than 0.5% for the funds they borrowed in the wholesale market, and therefore had to pass this on to their customers.

She added that despite this, banks are now ‘stepping up’ to meet the increasing demand for small business loans.

Time To ‘Haul In The Banks’?

Stephen Alambritis of the Federation of Small Businesses said that the chancellor was right to “haul in the banks”.

He believes: “It is hugely important that Mr Darling keeps tabs on the banks to ensure they are lending money to firms, and at fair rates. Firms need to be able to reap the benefits of the historically low base rate.”

Mr Darling also added that VAT will increase from its current rate of 15% to 17.5% again, after it was reduced at the beginning of December in order to help boost retail sales.

When looking at the wider economy, the chancellor says that he still believes that the economic recovery will begin to recover at the beginning on the year, with the most growth being seen in 2010.

Official figures released last week show that the British economy has continues its contraction between April and June of this year, though the rate was slightly slower than the previous quarter.

What Do You Think?

Are the banks taking advantage, or do their interest rates reflect wholesale rates they still have to pay? We would love to know your thoughts and opinions. Leave your comments here.

High Streets At Risk?

Out-of-town shopping areas could be putting traditional high streets at risk unless proposed changes to plan rules are scrapped according to MPs.

Ministers are looking to replace the ‘need test’, which aims to prevent excessive retail park or supermarket development. But the communities select committee wants it retained in order to stop town centres being damaged.

However, John Healey is a communities Minister, and says that changes will mean “greater safeguards for the high street, not less.”

The Association of Convenience Stores has also welcomed the MPs’ report.

The needs test was created after many complaints that smaller shops were being damaged by chains developing larger stores.

Out With The Old, In With The New

The test forces planning committees to address whether the local community needs the proposed superstore or not.

But, in 2005, a review of planning regulations found that the test was having negative effects such a the restriction of competition and consumer choice, and therefore the government announced plans to scrap the plan two years ago.

Now, it wants to introduce a broader ‘impact assessment’ in its place.

The cross-party Commons report says it is not convinced that the test will have adverse effects: “On the contrary, we have heard from representatives of developers, of local planning groups, that it is serving a useful – some say essential – function.”

Mixed Views

The MPs also believe that the timing of the change could make its effect even worse. It concludes that: “In the current economic climate, the removal of the need test would present unnecessary risks to town centres.”

On the other hand, Mr Healey believes the needs test is “dysfunctional” and that the new system would allow us to “protect the vibrancy of town centres by requiring developers to carry out assessments into key factors including retail diversity, consumer spending, loss of trade and job creation.”

“The government is helping small shops and other high street retailers manage their business rates with £2 billion rate relief support next year and from next month they will be able to spend this year’s inflation increase over the next two years.

“Special waivers for local planning applications are also helping small businesses during this difficult time,” he added.

What Do You Think?

A good idea or a bad one? I now the time for change or, given the current economic climate, could this make things worse? We would love to know your thoughts and opinions. Leave your comments here.

Shareholders To Pay

The City watchdog has told insurance companies they must no longer find compensation from their with-profits investment funds.

Operational failure fines and compensation my previously have come from surpluses and policyholders’ funds, but now the Financial Services Authority (FSA) has said that, from July 31st, shareholders must pay these off instead.

According to consumers’ association Which?, these rules have been somewhat diluted compared to the original proposals. It also says it wanted the rules to cover retrospective cases of mis-selling.

Surplus funds, or inherited states, have been built up over decades in the ‘with profits’ funds of life insurance companies. They are used to pay compensation and fines of millions of pounds, that are imposed on companies fined for mis-selling policies.

Consumers Paying For Mistakes

According to a spokeswoman from Which?, consumers are therefore effectively paying for the companies’ mistakes.

However, after 31 July, any mis-selling will no longer result in compensation using funds from inherited estates according to the FSA.

The FSA’s director of retail, Dan Waters said: “It is essential that with-profits policyholders are treated fairly. In future, the liability for compensation and redress payments will rightly fall to shareholders as the owners of life companies.”

However, compensation for mis-selling that occurs before July 31st can still be paid using the funds.

No Back-Payments

According to Which?, this is very different from previous proposals made by the FSA, which planned the ban regardless of when the mis-selling occurred.

The company’s chief executive, Peter Vicary-Smith said: “This is an unbelievable betrayal of consumers who are taking hits from all sides again. It appears the FSA is allowing the financial services industry to dictate policy once again.”

There are currently very few with-policies sold, and several insurers have greatly cut the value of their giant with-profits investment funds recently, along with the payouts being given to savers when their policies mature.

This is primarily because of last year’s fall in share prices and the value of commercial property.

What Do You Think?

Is the new policy fair? Should it have been back-dated? We would love to know your thoughts and opinions. Leave your comments here.

15 Month High

The British Bankers Association (BBA) has found that mortgage approvals by major banks have increased in a 15 month high in June.

35,235 mortgages were approved for house purchase in June, which is higher than the previous months 31,919 according to the BBA.

This reflects that the banks are finding it more easy to lend now than they were about a year ago when mortgage approvals were only 65% of what they were in June last year.

However, the number of people wanting to remortgage or borrow with other loans has remained low.

 Contradicting Signs

The increase in mortgage approvals brings hope that there will also eventually be a rise in the activity of the property market.

The BBAs statistics director, David Dooks said that he believed that approvals are recovering from the very low level they found themselves in, in November. However, he also says that the pick-up in mortgage lending by major banks contradicts the number of people lending by other home loan providers.

Director of mortgage brokers Coreco, Andrew Montlake said he wasn’t convinced there was a significant shift in the mortgage market.

He said: “Some recent mortgage figures, including BBA’s have led some to suggest things are finally beginning to pick up, but I don’t buy it.

The Highs & The Lows

“From where I am standing, the next few months are still going to be exceptionally difficult for borrowers and this will only change once the lenders begin to lend – and they are still not lending at levels sufficient to drive a sustained recovery in the property market.”

Values of mortgages being approved has also shrank. The average mortgage approved by major banks now stands at £136,400. This is 11% lower than just a year ago, reflecting the fall in house prices.

Gross mortgage lending however has improved for the first time since April 2008.

Remortgaging approval also rose slightly in June compared to May. 28,133 people are now remortgaging their homes, which is 52% lower than a year ago.

Credit Cards & Overdrafts Remain Steady

According to the BBA, credit card spending also remains stable, with people continuing to pay back everything they borrow via their cards, and overdrafts remaining steady.

But personal loans that are often taken out for large purchases, such as a new car, have fallen by £1.4 billion since the end of last year.

Mr Dooks believes that people are exhibiting “little appetite for unsecured borrowing.”

With low interest rates, the number of people putting deposits into savings accounts is also remaining very weak according to the BBA.

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Double Shops Empty By The End Of The Year

By the end of 2009 it is expected that 15% of high street shops will be empty – more than double the 7% of stores that were vacant at the beginning of the year.

The British Retail Consortium (BRC) also added that some areas have already seen up to 40% of shop space empty due to the recent lack in consumer confidence.

The likes of Woolworths has long since disappeared from the High Street already, but overall the UK retail sales have not completely collapsed as some people had originally feared.

Harwich, Essex, Gateshead and Walkden in Greater Manchester are four areas that are among the worst hit.

Around 12% of town centre shops have already been badly hit and stand empty because of this said the BRC.

Visible Signs Of Downturn

They said: “It is clear that in many places, recession is accelerating a trend of decline that was already underway.

“The dangers associated with this deteriorating picture are clear.

“Vacant units are perhaps one of the most visible impacts of the economic downturn. Shoppers who are unable to ignore the increasingly visible vacant units in their local communities are likely to further reinforce falling consumer confidence.”

The report also added that sadly some High Streets had lost their customers to nearby towns and shopping centres. This could mean that they never go back to being important shopping destinations.

High Streets Need Nurturing

However, the report also stressed that the High Street had still got a bright future ahead of it, but that it would need “nurturing through this difficult period.”

The report also suggests that town centres that are failing should focus on their local characters and create an attractive and safe environment for people to shop in. It believes that developing unique identities would help pull their High Street through the recession.

On top of making towns more distinctive and welcoming, the BRC suggests that better transport links are put in place in a 20-point plan in order to help struggling areas.

It says car parks should be improved as well as facilities that encourage ‘greater footfall’ in town centres.

What Do You Think?

How can High Streets increase their custom once again? Are the signs of lack of custom noticeable, and does that lead to fewer people shopping there? We would love to know your thoughts and opinions. Leave your comments here.

Refusing To Comment

Deutsche Bank as admitted that it will possibly face a criminal investigation with regards to allegations of spying.

The largest lender in Germany has been accused of spying on two board members that they suspect have leaked sensitive details as well as one critical shareholder.

It is now being decided whether or not a formal criminal investigation should take place.

The bank involved has refused to comment on the reports regarding the dismissal of two employees in connection with the spying claims.

Back in May the bank began its own inquiry into the allegations, which is still underway, but the banks spokesman said he would not be commenting on the spying allegations until the independent inquiry is complete.

Will An Official Investigation Take Place?

State prosecutors are also looking at evidence that the German data protection office have provided, but it could take them as long as two or three weeks to decide whether or not they will begin a formal investigation.

Reports also suggest that the bank has stopped corresponding with their former head of security and head of investor relations over the matter.

However, this is not the first case of its kind the group has recently faced.  Telecoms group Deutsche Telekom, railway group Deutsche Bahn and retailer Lidl have all faced similar problems in recent years.

This is more bad news for the bank that reported its first annual loss in over 50 years last year after it was forced to write down millions of euros of bad debts thanks to the US mortgage market.

But in the first quarter of 2009, profits were on the up again with thanks, primarily, to record sales of corporate bonds. But surely another blow is not going to help the bank through the global recession.

What Do You Think?

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‘Masked Tragedies’

Nearly a million people in the UK have been forced into part time jobs because they can’t find full time work during the recession, official figures from the Office for National Statistics show.

According to the statistics, in the three months until May this year, around 927,000 people have had to take on part time positions because they couldn’t find full time ones. This is a third more than a year ago and the highest number since the ONS began its collecting data in 1992.

According to the TUC, these people are the “masked tragedies of the recession” because they aren’t turning up on unemployment records.

 TUCs general secretary Brendan Barber said: “These people won’t be showing up in the spiralling unemployment figures but the economic slowdown and their subsequent move into part time work will have forced many of these families to rein in their spending dramatically.”

“While it’s better for these million people to be in a job than have no job at all, many will have downshifted and will be doing the same jobs that they once did full time, but for a fraction of the pay.”

Reduced Working Hours Unwanted

As the recession continues to effect the economy, many companies have asked their staff to take reduced working hours. This includes bigger companies like British Airways who have asked many of their employees to take part time work or unpaid leave.

According to the ONS, 12.5% of part time workers do not want to work fewer hours. This is compared to only 8% saying the same thing earlier this decade. This figure is nearly as high as the last recession in the early 1990s when the rate reached 14%

This comes after news last week that unemployment rose by record amounts in the three months leading up to May, to reach 2.38 million.

The number of unemployed also increased by 7.6%, which is the highest in over a decade.

Those claiming unemployment benefit also increased by nearly 24,000 last month to reach 1.56 million. This is actually slightly lower than was initially predicted by analysts.

What Do You Think?

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Depressed About Money

We’ve all noticed the physical changes of the recession – unemployment, debt, repossession etc, but no-one has really looked into the emotional effects. But counselling charity Relate says that young people are feeling the strain of the repression keenly.

Even teenagers are saying that the repression is changing their lives drastically as money is getting harder and harder to come by.

Becky Apperley is 21, and says her financial situation is getting to her. After being unemployed for 3 years now she still isn’t having any luck finding work.

“A lot of the time I feel suicidal. I do actually self-harm sometimes, although I’ve stopped it now,” she admitted.

“It wasn’t because of the fact that I was depressed over other things, it was because I was depressed about money.”

Young Facing Tougher Times?

This may seem like an extreme example, but according to Relate, 3% of the under-25s they see claim to have similar thoughts.

Paula Hall from the charity says it’s vital not to forget the problem the recession also causes for the younger generation too.

She said:  “Half of Relate counsellors say the young people they see are worrying really significantly about money.

“It’s high up on their agenda. It’s something they want to talk about in sessions.”

21% of young people also fear losing their home. One 16 year old said: “I’m actually having to move out this year, because my mum can’t afford to have me live there. I’m worried I won’t find a house for quite a while.”

Families Feel The Strain

Another 21% of young people are finding it more difficult to get along with their families, most likely caused by the stress of the financial situation and the strain it is providing on everyone.

19% of youngsters are worried about their careers and their futures. One 15 year old has just finished her GCSEs at college and is worried about getting a job in her chosen field of photography. But she is trying to stay positive.

She said: “I kind of just look on the bright side of things.

“I do think I am going to be able to make it. I’m only 15 now and things will change.”

Relate says that this is the kind of attitude all young people should be taking: “It’s important to get that balance between being realistic and being hopeful.

“We aren’t going to be in a recession forever and we are still a fairly wealthy country. It’s bound to turn around.”

What Do You Think?

Is the recession affecting young people worse than others, or is it just the stress of their first big recession that makes them feel they have been worst affected? We would love to know your thoughts and opinions. Leave your comments here.