LSE EQUAL PAY STATEMENT
1.0
Scope
This policy applies to all staff employed by the London School of Economics (LSE).
2.0
Purpose
This equal pay statement is broadly about how we will ensure staff of the LSE will receive equal
pay for work of equal value. It is in addition to the School’s Single Equality Scheme which sets out
how we, as an institution, will enhance our equality practices in both our role as an employer of
choice and provider of education. It also demonstrates, through the action plan, how we intend to
move beyond compliance and focus on eliminating all forms of discrimination and inequality for the
betterment of the School.
Specifically, the ‘equality of terms’ provisions in the Equality Act 2010 (the Act) entitle a woman
doing equal work with a man in the same employment to equality in pay and other terms and
conditions.
Whilst the Equality Act 2010 only deals specifically with inequality in pay in relation to gender,
unequal pay affects a significant number of employees from different equality groups, and needs to
be seen within the context of wider employment disadvantage.
Research shows that differences in pay across the equalities areas vary, and have different
causes. Research into experience of applying good equal pay practice to the gender pay gap
within the workplace suggests that in practical terms what works for women works for other
disadvantaged groups as well. – might want to think about rephrasing or substantiating. Could
come across as ‘all protected characteristics are the same, really, so a one-size-fits-all approach
will do’.
2.1
Definitions
Pay and Benefits
The Equality Act equal pay provisions are called ‘equality of terms’ and cover all aspects of the
contractual pay and benefits package, including; basic pay, non-discretionary bonuses, overtime
rates and allowances, performance related benefits, benefits under pension schemes and sick pay.
Equal Pay for Equal Work
The male comparator may be doing the same job as the female employee, or he may be doing a
different job. She can claim equal pay for equal work with a comparator doing work that is:
i) the same, or broadly similar (known as like work).
ii) different, but which is rated under the same job evaluation scheme as equivalent to hers (known
as work rated as equivalent).
iii) different, but of equal value in terms of demands such as effort, skill and decision-making
(known as work of equal value).
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3.0
Equal Pay Statement
The general gender equality duty includes a requirement to have due regard to the need to
eliminate discrimination that is unlawful under the Equality Act 2010. The new duty covers nine
protected characteristics – race, gender, disability, age, religion and belief, sexual orientation,
gender reassignment and pregnancy and maternity.
The London School of Economics supports the principle of equal opportunities in employment and
believes as part of that principle that staff should receive equal pay for the same or broadly similar
work, regardless of differences in their age, race, nationality, ethnic or national origin, gender
(including staff who have undergone gender re-assignment), religion, sexual orientation, personal
circumstances, political affiliation, or whether they have a disability or are a member of a trade
union.
The School will not unlawfully discriminate in determining pay for staff. The School will give
appropriate regard to fairness, equity, market forces and the skills, knowledge and experience of
all staff in the interest of the School and School’s Single Equality Scheme. This in turn is intended
to ensure the School is able to attract and retain excellent staff and enhance the Schools
reputation as a university of international excellence.
Although the Director is responsible for ensuring staff are treated equitably, both HR Division and
Heads of Department / Service Leaders are responsible for ensuring initial starting salaries are
consistent with this Equal Pay Statement.
4.0
Commitment
In order to put our commitment to equal pay into practice we will:

Ensure the pay system is transparent, based on objective criteria and free from unlawful
bias. Transparency means that pay and benefit systems should be capable of being
understood by everyone.

We will inform staff of how these practices work and how their own pay is arrived at and
respond to concerns about on equal pay as a priority.

We will use the School’s job evaluation system, HERA (Higher Education Role Analysis), to
assist with determining equal pay in order to demonstrate the Schools has analytically
assessed the requirements of the jobs being compared.

Ensure the School’s Single Equality Scheme Plan contains provision for equal pay reviews
normally once every five years (in line with EHRC guidance for all staff - including those on
maternity leave, career breaks, or non-standard contracts). Going forward, such reviews
will consider pay differences not only between women and men, but also between other
groups (such as disabled and non-disabled employees, and ethnic minority and white
British employees). Just white British? Or all white employees?

Carry out regular monitoring of the impact of our employment / pay practices through the
provisions of the Single Equality Scheme.

Provide training and guidance for Heads of Department / Service Leaders and other line
managers involved in decisions about pay and benefits.

Consult with our recognised trade unions on any changes to the LSE’s pay structure.

Ensure staff are able to understand how each element of their pay contributes to total
earnings in a pay period. The School will provide staff with information on how the pay
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structure operates (via the Schools web site) and how pay is arrived at (upon request from
a role holder).
5.0

Respond efficiently to formal concerns about equal pay.

The School provides data / information regarding pay to a number internal committees and
external bodies regularly. It will also provide data to other key stakeholders regarding pay
upon receiving a reasonable request – subject to considerations of data protection.
Complaints / Putting things right
If a member of staff has an individual compliant about the perceived lack of equal pay they should
speak to their Head of Department / Service Leader informally in the first instance who will in turn
consult with their HR Partner.
Should this not result in a satisfactory outcome for the member of staff concerned he/she should
raise the matter formally in line with the appropriate grievance procedure. This shall not affect the
statutory rights of the individual.
6.0
Monitoring / Review
This statement will be reviewed annually by HR Division to take account of future legislative
obligations and sector best practice.
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