To become a fully diverse and inclusive workplace, our workforce must reflect the customers we serve.
Each year we report on our pay and representation data. Our data helps us track our progress, shares detail about what we have achieved against the targets we set and where we still have work to do.
Our data snapshots
Our pay and representation snapshots are taken at different times of the year.
We take our data snapshots on the same dates each year so that we can make an accurate comparison with previous years and, therefore, capture a true picture of how we're progressing.
- our pay gap data snapshot is taken on 5 April every year
- our representation data snapshot is taken on 7 December every year
Pay
Reviewing our pay gap data helps us target interventions to improve representation across the organisation. While we have a legal duty to publish our gender pay gap data, we choose to publish our ethnicity pay gap data and we plan to start publishing disability pay gap data in 2024.
Calculating our pay gaps
The way we calculate our pay gap data changed in 2023. Our 2023 pay gap data:
- doesn’t include bonus payments in our hourly pay calculation
- considers our peoples voluntary pension contributions as part of their salary sacrifice
We've compared our 2023 pay gap data with our old and new calculation methods. Using our new calculation method resulted in a small change.
Gender
See our full data set on gender pay gap
Representation across our pay quartiles is becoming more balanced. In our lowest pay quartile, women make up 55.6%, down from 58.3% in 2022.
The mean bonus pay gap has gone up from -0.2% in 2022 to 1.4%. The median bonus gap remains 0.0%.
To accelerate progress, our diversity, inclusion and wellbeing strategy sets out our clear commitments and initiatives that will take us to 2026.
Ethnicity
See our full data set on ethnicity pay gap
Our ethnicity pay gap has continued to fall year on year since we first started reporting in 2020.
We saw our biggest pay gap reduction in our mixed background ethnicity group. The mean pay gap is 5.6% (13.6% in 2022) and median 9.1% (12.8% in 2022).
Our ethnicity bonus gap has gone down from 7.0% in 2022 to 6.1%, reflected across individual ethnicity groups. The median bonus gap remains at 0.0%.
Length of service and senior representation has a large impact on pay. Our workforce has more long-serving colleagues and senior staff who aren’t from ethnic minority groups.
Our target is to reduce the pay gap below 10% by 2026. We’ve already launched programmes for our staff to help us reach our target, for example our diversifying leadership programme and reviewing the level of pay in non-managerial roles.
You can read more about the work we’ve done and what we’re planning to do.
-
The ‘median’ is the midpoint value in a data range. The mean – or average – is the sum of all the values, divided by how many values there are.
The median is usually considered a more representative measure of pay gaps than the mean. That’s because a small number of very large or very small values can greatly affect the mean and therefore distort the overall picture.
To measure our gender and ethnicity pay gaps, we compare the median and mean hourly earnings of different groups:
- men and women for the gender pay gap, and
- white and ethnic minority groups (Black, Asian, Mixed background and other) for the ethnicity pay gap.
The difference between the two groups is given as a percentage. Pay gaps between groups are usually the result of differences in representation at senior and higher-paying levels.
The UK gender median pay gap was taken from the Office for National Statistics (ONS) data set, which gathers data across all employers and not just those who have to report on their gender pay gap.
Colleagues are not obliged to state their ethnicity. They have the option of choosing ‘other’ and ‘prefer not to say’. The data only reflects staff who’ve chosen to report their ethnic group.
-
Gender pay gap (as at 5 April 2023)
Pay 2023 2022 Difference in median pay 2.7% 4.8% Difference in mean pay 4.9% 5.5% Pay quartile distribution Male Female 2023 2022 2023 2022 Upper quartile 50.8% 50.9% 49.2% 49.1% Upper middle quartile 46.8% 47.7% 53.2% 52.3% Lower middle quartile 43.0% 44.2% 57.0% 55.8% Lower quartile 44.4% 41.7% 55.6% 58.3% Bonus 2023 2022 Difference in median bonus pay 0.0% 0.0% Difference in mean bonus pay 1.4% -0.2% Bonus Male Female Overall 73.6% 75.7% 74.8% -
Ethnicity pay gap (as at 5 April 2023)
Pay 2023 2022 Difference in median pay 11.3% 14.7% Difference in mean pay 19.4% 20.3% Pay quartile distribution White Ethnic Minority 2023 2022 2023 2022 Upper quartile 78.3% 79.2% 21.7% 20.8% Upper middle quartile 68.8% 64.5% 31.3% 35.5% Lower middle quartile 52.2% 53.7% 47.8% 46.3% Lower quartile 49.4% 49.7% 50.6% 50.3% Bonus 2023 2022 Difference in median bonus pay 0.0% 0.0% Difference in mean bonus pay 6.1% 7.0% Bonus White Ethnic Minority Overall 81.2% 72.7% 74.5% Breakdown of pay gap by ethnicity
Pay White Asian Black Mixed Other Difference in median pay N/A 11.5% 13.3% 9.1% 10.3% Difference in mean pay N/A 20.8% 22.9% 5.6% 14.3% Pay quartile distribution White Asian Black Mixed Other Upper quartile 78.3% 10.7% 4.8% 2.4% 3.9% Upper middle quartile 68.8% 15.6% 8.3% 2.2% 5.1% Lower middle quartile 52.2% 24.1% 13.6% 4.2% 5.9% Lower quartile 49.4% 29.0% 13.4% 2.2% 6.1% Bonus White Asian Black Mixed Other Difference in median pay N/A 0.0% 0.0% 0.0% 0.0% Difference in mean pay N/A 6.9% 6.9% -2.6% 6.7% Bonus White Asian Black Mixed Other Overall 81.2% 69.5% 72.2% 81.0% 82.5% 74.5%
Representation
Diversity in senior management roles
As signatories to HM Treasury’s Women in Finance Charter, we’re committed to supporting the progression of women into senior roles.
When we signed up to the Charter in 2017, 35% of our staff were women and our target was to achieve 40% female representation in senior roles by December 2021. We achieved our target ahead of the deadline and set ourselves a further target, to achieve 50% by 31 December 2023.
See our full data set on representation
Although, in December 2023, female representation on our Board and Executive teams gone up from 46% in 2022 to 54%, our overall female representation in senior roles is 44%, falling short of our ambitious target.
We are focused on achieving gender balance in our workforce, so we will continue to aim for 50% of senior managers to be women by 2026.
Among our senior managers, 17% came from ethnic minority groups, but still short of the ambitious stretch target that we’ve set ourselves of 20%.
The action we plan to take and help us reach our targets is set out in our diversity, inclusion and wellbeing strategy.
-
The ethnicity representation data only includes staff who’ve chosen to report their ethnic group. Colleagues are not obliged to state their ethnicity. They have the option of choosing ‘other’ and ‘prefer not to say’.
Full representation data can be found in our data sheet (XLSX 20KB), which covers gender, age, gender identity, ethnicity, sexual orientation, disability and religion.
All the percentages in our representation data have been rounded to the nearest whole number, which means the figures might not add up to exactly 100%.
-
Our gender balance in December 2023, compared with December 2022
Position Female Male 2023 2022 2023 2022 Our board and executive teams 54% 46% 46% 54% Our senior managers 44% 42% 56% 58% Both groups together 45% 41% 55% 58% -
Our ethnicity representation in December 2023, compared with December 2023
Position White Ethnic Minority 2023 2022 2023 2022 Our board and executive teams 50% 46% 25% 46% Our senior managers 82% 81% 17% 16% Both groups together 78% 76% 18% 21%
