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BBC Annual Report and Accounts 2017-18: Equal Pay at The House of Commons Digital, Culture, Media and Sport Committee BBC Annual Report and Accounts 2017–18: Equal Pay at the BBC: BBC Response to the Committee’s Sixth Report of Session 2017–19 Seventh Report of Session 2017–19 Report, together with formal minutes relating to the report Ordered by the House of Commons to be printed 15 January 2019 HC 1875 Published on 23 January 2019 by authority of the House of Commons The Digital, Culture, Media and Sport Committee The Digital, Culture, Media and Sport Committee is appointed by the House of Commons to examine the expenditure, administration and policy of the Department for Digital, Culture, Media and Sport and its associated public bodies. Current membership Damian Collins MP (Conservative, Folkestone and Hythe) (Chair) Clive Efford MP (Labour, Eltham) Julie Elliott MP (Labour, Sunderland Central) Paul Farrelly MP (Labour, Newcastle-under-Lyme) Simon Hart MP (Conservative, Carmarthen West and South Pembrokeshire) Julian Knight MP (Conservative, Solihull) Ian C. Lucas MP (Labour, Wrexham) Brendan O’Hara MP (Scottish National Party, Argyll and Bute) Rebecca Pow MP (Conservative, Taunton Deane) Jo Stevens MP (Labour, Cardiff Central) Giles Watling MP (Conservative, Clacton) The following Members were also members of the Committee during the inquiry Christian Matheson MP (Labour, City of Chester) Powers The Committee is one of the departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. These are available on the internet via www.parliament.uk. Publication Committee reports are published on the Committee’s website at www.parliament.uk/dcmscom and in print by Order of the House. Evidence relating to this report is published on the inquiry publications page of the Committee’s website. Committee staff The current staff of the Committee are Chloe Challender (Clerk), Mems Ayinla (Second Clerk), Mubeen Bhutta (Second Clerk), Josephine Willows (Senior Committee Specialist), Lois Jeary (Committee Specialist), Andy Boyd (Senior Committee Assistant), Keely Bishop (Committee Assistant), Sarah Potter (Attached Hansard Scholar), Anne Peacock (Senior Media and Communications Officer) and Lucy Dargahi (Media Officer). Contacts All correspondence should be addressed to the Clerk of the Digital, Culture, Media and Sport Committee, House of Commons, London SW1A 0AA. The telephone number for general enquiries is 020 7219 6188; the Committee’s email address is [email protected] Seventh Report of Session 2017–19 1 Contents The BBC’s response to the Committee’s Sixth Report 3 The Committee’s Report 3 The BBC’s response 3 Equal pay 3 Gender transparency in pay bands 4 Grievances 4 Personal service companies 5 BBC Studios Salaries 5 Next steps 5 Appendix: BBC Response 6 BBC response to the Committee’s detailed recommendations 6 THE BBC’S APPROACH TO EQUAL PAY 7 BOARD REPORTING ON PAY 7 PAY TRANSPARENCY 8 PAY TERMINOLOGY AND TRAINING FOR MANAGERS 9 PAY FOR ON-AIR STAFF AND THOSE PAID £150K+ 11 PUBLICATION OF BBC STUDIOS SALARIES 12 INFORMAL AND FORMAL GRIEVANCE PROCESSES 13 ENGAGEMENT WITH STAFF ON PAY-RELATED MATTERS 17 PERSONAL SERVICE COMPANIES 18 LICENCE FEE CONCESSION FOR OVER 75 YEAR OLDS 19 BBC PARLIAMENT 19 SIR CLIFF RICHARD AND THE EDITORIAL GUIDELINES 20 THE BBC’S GLOBAL COMPETITIVENESS 22 Formal minutes 23 Witnesses 24 Published written evidence 25 List of Reports from the Committee during the current Parliament 26 Seventh Report of Session 2017–19 3 The BBC’s response to the Committee’s Sixth Report The Committee’s Report 1. On 23 October 2018 the DCMS Committee published its Sixth Report of Session 2017–19, Equal Pay at the BBC (HC 993). The Report was the culmination of an inquiry that begun in January 2018. It followed the resignation of the former BBC China Editor, Carrie Gracie, on pay equality grounds, and calls from the BBC Women group that “the BBC has failed to pay men and women equally for equal work, in breach of the Equality Act 2010, over many years.”1 2. The inquiry and Report also considered the BBC’s use of ‘personal service companies’, and a number of issues emerging from the BBC’s Annual Report 2017–18 and other recent announcements, including the licence fee concession for over 75-year olds, and the future of BBC Parliament. The BBC’s response 3. For the first time, we requested that the BBC provide a response to our Report, including individual answers to each of our recommendations. The BBC’s response was received on 18 December 2018 and is appended to this Report. 4. We appreciate the BBC responding to our Report as we requested. The response contains information that will assist us in continuing to assess the BBC’s performance, especially on pay and contractual issues. Equal pay 5. We do not intend to respond in detail to all aspects of the BBC response. However, we wish to comment on several key issues which, in our view, fall short of the response we expected. 6. Fundamentally, the response fails to acknowledge the structural problem that exists regarding equal pay within the Corporation. In our Report, we stated that the BBC should publicly acknowledge that it has a pay discrimination problem, and set out a series of steps to resolve it. In its response, the Corporation stated that it “does not agree with the Committee’s suggestion that it operates a discriminatory pay practice.”2 7. We are very disappointed that the BBC has failed to acknowledge that a pay discrimination problem exists within the Corporation. We are aware of ongoing concerns among female staff at the BBC. We believe that, had we not decided to undertake our inquiry, internal BBC action may not have been initiated in the same way. It should not take a select committee inquiry for action to be precipitated. We will continue to monitor the situation regarding pay discrimination, including talking to BBC employees and presenters, and will take further evidence from senior management over the course of the next six months. 1 BBC Women (PAY0003), para 1 2 BBC response, p.1 4 Seventh Report of Session 2017–19 8. We recommended that the BBC commit to specific targets to ensure that the pay of its high earners has no discriminatory element to it, and specifically that it set these targets by December 2018 so that next year’s BBC Annual Report can set out measurable progress. However, in its response, the BBC merely mentions existing targets to eliminate the gender pay gap by 2020, as well as targets for on-air representation. We were disappointed that the BBC has failed to set specific targets for tackling discrimination. We were also frustrated to note the Corporation’s continued references to the ‘gender pay gap’ and ‘fair pay’ as opposed to unequal pay (a completely different matter and an unlawful practice, as described in our Report). In the BBC’s 2018–19 Annual Report, we expect to see clear evidence of progress on pay discrimination, including measurable indicators, and a commitment to use of the correct terminology—which, for issues of pay discrimination should be ‘unequal pay’ not ‘gender pay gap’ or ‘fair pay’. Gender transparency in pay bands 9. In our Report, we recommended that the BBC introduce greater transparency in pay bands. We said that, in particular, staff at all levels should be able to see the numbers of men and women in each quartile so that women can compare their salaries to those of their male colleagues doing equal work, unless those numbers are so small that they would lead to the individual staff member being obviously identifiable.3 10. The BBC response makes only a single reference to gender in relation to pay transparency, saying: “We will consider the substance of your recommendations, in conjunction with the Will Hutton transparency review, on whether there are enhancements to be made on gender breakdown.”4 We found the BBC’s response on transparency within pay bands to be weak; implementing a gender breakdown of the numbers of men and women in each quartile would empower staff on equal pay, in absence of full transparency. We urge the BBC to make quick progress in its further consideration of the recommendation, and will seek an update upon publication of the Corporation’s Annual Report. Grievances 11. We also recommended that the BBC should set a deadline by which all grievances would be dealt with.5 In its response, the Corporation refused to set such a deadline, stating that resolution “can take some time, especially in complex cases going back several years”.6 12. We were pleased to hear that “the vast majority” of individuals awaiting outcomes from informal cases last September have now had that outcome provided. However, this is no substitute for setting out a plan to resolve all outstanding cases, a commitment that the BBC singularly failed to make in its response to our recommendation. Once again, we intend to monitor progress on further resolution of cases, and will take evidence from the BBC within six months. 3 Digital, Culture, Media and Sport Committee, ‘BBC Annual Report and Accounts 2017–18: Equal Pay at the BBC’. Sixth Report of Session 2017–19, HC 993, paragraph 34. 4 BBC response, p.2 5 Digital, Culture, Media and Sport Committee, ‘BBC Annual Report and Accounts 2017–18: Equal Pay at the BBC’. Sixth Report of Session 2017–19, HC 993, para 22 6 BBC response, p.5 Seventh Report of Session 2017–19 5 Personal service companies BBC Studios Salaries 13. In our Report, we highlighted that BBC Studios, as a commercial arm of the BBC, is not currently covered by transparency rules.
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