How London is tackling a lack of socio-economic diversity in senior roles

Friday April 30, 2021

Research suggests that senior roles in the City of London are overwhelmingly populated by people of rich and privileged backgrounds. Now the government has joined with the City to create a task force aiming to improve representation of those of a lower socioeconomic status.

The Bridge Group, which advocates for social equality, published a report that stated only one in ten senior positions in the City are held by people from poorer backgrounds, a stark contrast to the two thirds they occupy in the wider workforce. They also take 25% longer to progress through the ranks, despite their performance being equal to their richer co-workers.

Of those in junior positions from a more privileged background, 47% had parents in prestigious occupations and 11% attended independent schools. At the senior level, 89% were privileged by parental occupation whilst 25% had a private school education. White men who attended independent schools or selective state schools made up 42.7% of all senior positions.

The Taskforce

Now the Treasury has announced a new taskforce to tackle inequality in the City. John Glen, who is City minister, said “We’re entering a new chapter for UK financial services and it’s vital that firms have the right leadership to grasp the opportunities ahead. That means taking action to ensure that talented people from all backgrounds and parts of the country can reach their full potential. By breaking down socio-economic barriers to progression, our financial services sector will become more innovative and competitive, and help to level up the UK.”

His Labour shadow counterpart, Pat McFadden said, “Anything that can improve social mobility and break down class, gender or racial barriers is to be welcomed. There is still too much of British life where people don’t get a fair chance because of their background. When that kind of thing happens, it is not only deeply unfair, but also an enormous waste of talent. I hope this taskforce has teeth and follows through so that the senior appointments in companies don’t always go to the same charmed circle of people.”

A major consultation will be launched involving all levels of the industry to examine ways to improve diversity. There will also be a new body to helping businesses monitor and compare their diversity levels. The taskforce will be chaired by Catherine McGuinness, the City of London policy chair. She will be joined by three vice chairs, including Andy Haldane, chief economist at the Bank of England.

McGuinness said: “Talented individuals should be able to succeed in financial and professional services on their own merit regardless of socio-economic background. Unfortunately, for many people that does not yet seem to be a reality. We hope that firms will seize the opportunity the taskforce provides to develop a more diverse pipeline by ensuring they are truly recruiting and promoting on merit.” 

The proposals received outside support from the Social Mobility Foundation Charity, with chief executive Sarah Atkinson saying, “The plan proposed is broad and ambitious, which it needs to be to reverse the City’s deep-rooted preference for polish over potential – the measure of success will be whether the commitment from government and firms is there to deliver long-term change”.

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