PARLIAMENTARY DEBATE
BBC Pay - 9 January 2018 (Commons/Commons Chamber)
Debate Detail
By introducing reforms to the BBC charter, the Government, under the leadership of my two predecessors, have vastly improved BBC transparency and shone a light on gender and pay issues at the BBC. This new transparency includes the requirement for the BBC to publish annually the salary details of all BBC staff who are paid more than £150,000. The publication of such details for the first time in July last year resulted in much-needed public scrutiny of pay at the BBC.
The BBC’s overall gender pay gap stands at around 9%, but the figures also show that two thirds of those who earn more than £150,000 are men, and reveal a lack of staff from black, Asian and minority ethnic backgrounds among the top earners. At the time of the publication of the salary details, some male presenters were understandably uncomfortable with the results. John Humphrys even acknowledged that he would not necessarily be able to explain his salary of £600,000.
This is not just a matter of levelling women’s pay up; it is a matter of pay equality. To work for the BBC is a public service and a great privilege, yet some men at the BBC are paid far more than other equivalent public servants. The BBC has begun to act, and I welcome that, but much more action is needed, especially when BBC foreign editors can earn more than Her Majesty’s ambassadors in the same jurisdiction.
With respect to the specific case of Carrie Gracie, I welcome the Equality and Human Rights Commission’s decision to look into the issues she has raised. The EHRC is the regulatory body responsible for the policing of equal pay and it is for the commission, not the Government, to investigate this matter and take further action, if necessary.
Of course, the BBC is operationally and editorially independent of the Government—and rightly so. The director-general has commendably committed to sorting out this issue by 2020, and we will hold him to that. I understand that the BBC’s report about on-air presenter salaries will be published in the next few weeks, but we expect the BBC to observe pay restraint and to deliver value for money for licence fee payers. We will watch closely. The BBC must act, because the brilliant women who work at all levels of the BBC deserve better.
The resignation of the BBC’s China editor, Carrie Gracie, over the gender pay gap at the BBC has shocked and saddened us all, and I welcomed what the Secretary of State said. He may be interested to know that I received a rather unfortunate comment from the BBC earlier, which said:
“On air colleagues who have been seen to campaign on the issue of BBC equal pay have to question whether or not they would be regarded as impartial by audiences when covering the story.”
Does the Secretary of State agree that instead of carping or attacking its own people, the BBC, as a publicly funded organisation that does not pay equally, should be getting its own house in order?
I pay tribute to Carrie Gracie, who will be a huge loss. She has shown great bravery and determination on this issue. Her letter makes for staggering and shocking reading. It says:
“Salary disclosures the BBC was forced to make six months ago revealed not only unacceptably high pay for top presenters and managers but also an indefensible pay gap between men and women doing equal work…In the past four years, the BBC has had four international editors—two men and two women. The Equality Act 2010 states that men and women doing equal work must receive equal pay. But last July I learned that in the previous financial year, the two men earned at least 50% more than the two women.”
How many talented women need to resign and be lost before the BBC and other media organisations take action? The Secretary of State has said that he will challenge them, but what tangible action will we see from him, his Government and the BBC? It is now 100 years since women got the vote. We have come a long way, but why does it feel like so many in the establishment are stuck in the past?
The Digital, Culture, Media and Sport Committee decided this morning to invite the director-general to come and account for the BBC’s actions on gender pay since the publication of salaries last summer. It is important to see what progress it has made as well as what more needs to be made. Does the Secretary of State agree that this case underlines why we were right to insist on full disclosure of top pay, and not just for executives, but for on-screen talent?
We still live in a society in which confident men who believe in their own self-worth tend to rise to the top, or stay in position despite failure after failure, while talented women are more easily undervalued or forced out—but enough about the Prime Minister’s reshuffle. Carrie Gracie’s resignation as the BBC’s China editor highlights the issue of unequal pay in the BBC, in broadcasting and in society more generally, and we all have a role to play in stamping that out. Lord Hall said last year that he is determined to close the gender pay gap at the BBC, but this story shows that there is still a very long way to go.
Carrie Gracie says in her public letter that she told her bosses when she took the job of China editor that she expected pay equality with her male peers and that she believed she had secured it. Does the Secretary of State believe that the corporation is, as Carrie says, in breach of equality legislation? How can employees of less transparent media companies know whether their employers are complying with equality law? The BBC is accountable to the public and we know more about the pay gap there than we do about the pay gap in other organisations. Is the Secretary of State confident that female staff in other broadcasters and media companies are paid as highly as their male colleagues? Will he call them in to encourage them to be as transparent as the BBC? What will he do to ensure that this story is used not just to criticise our national broadcaster, as other media organisations might wish, but to highlight pay inequality across the board? The people involved in this story are at the top of their profession and earn significant sums, but we need to be at least as concerned about pay equality and fair pay for BBC employees and contractors on the lowest pay, some of whom are on as little as £16,000 a year. What is the Secretary of State doing to ensure that low-paid workers are not forgotten? Will he ensure that those paid by independent production companies or through BBC Studios are not exempt from pay transparency? Does he agree, finally, that when it comes to unequal pay, we all have to say, “Time’s up.”?
There is a very strong degree of cross-party unanimity on this subject, and I welcome the hon. Gentleman’s support for the measures that we have taken to introduce more transparency. As well as introducing transparency measures for the BBC, we introduced wider transparency measures on the gender pay gap for all large organisations. I think that that answers many of his questions about other organisations, but other public organisations have strong duties, and I will take his point about that very seriously. When it comes to investigating individual cases and policing the Equality Act 2010, that is a job for the EHRC. We welcome the fact that it is taking action in this case now, and it must take action wherever it sees that as appropriate.
Does my right hon. Friend agree that it is not good enough for the BBC to say that its performance in this area is better than that in many other sectors? Does he share my view that it is because the BBC is funded by public money that we are entitled to expect it not just to adhere to the requirements of the law, but to set a higher standard that others can then follow?
When it comes to transparency and the requirement under the Equality Act 2010 to publish the pay gap, the Secretary of State rightly says that it is for the regulator, the Equality and Human Rights Commission, to police and monitor the position to ensure that companies publish and set targets for closing the gap. To ensure that the Government can carry out the important task of remedying this discrimination, will he commit them to redressing the cuts of up to 70% that have fallen on the Equality and Human Rights Commission? This is a pivotal moment. We need the commission to be able to do its job, and it needs funds so that it is able to ensure that we right this wrong.
The BBC has been run like an old boys’ club for far too long, not least with Lord Hall’s appointment of James Purnell to a very highly paid job without that even being advertising to anyone else. I am sure that there was a far better qualified woman who would have wanted it, although I do not believe anyone on the Opposition Benches complained about that at the time. Does my right hon. Friend agree that it is not that women at the BBC are paid too little, but that many men at the BBC are paid too much and it is those salaries that should be levelled down? Does the Secretary of State also agree with Carrie Gracie that in this regard the BBC has been acting illegally?
“the BBC often settles cases out of court and demands non-disclosure agreements, a habit unworthy of an organisation committed to truth”.
That issue applies not just to the BBC, but to other broadcasters and companies right across the country. If we are trying to get transparency in equal pay, does the Secretary of State think it is a serious problem if so many employers pursue non-disclosure agreements when it comes to pay claims?
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