More than 10 million workers would be covered by the rules, which would affect firms with more than 250 employees.

The policy was a concession to the Liberal Democrats by the Conservatives towards the end of the Coalition government.

Mr Cameron has now confirmed the Conservative government will press ahead with the idea, which he believes will "cast sunlight on the discrepancies and create the pressure we need for change, driving women’s wages up".

The gender pay gap currently stands at 19.1 percent, which means a woman on average earns 80p for every £1 a man earns.

Salary benchmarking website, Emolument.com, says while the new plans are welcome, the salary gender gap in the UK may be more pronounced in smaller firms.

The site points out for Retail Managers the gap could be as much as 26% for smaller companies, compared to 11% in companies with more than 250 employees.

While there is no gender gap for Senior Consultants or Legal Associates on average in larger companies, that jumps to 20% and 15% respectively when it comes to smaller organisations.

National Living Wage

The prime minister said he wants to close the gap within a generation and thinks the compulsory National Living Wage for over 25s announced in the Budget will play a part in this.

Writing in The Times ahead of a speech to business leaders later, Mr Cameron said: "Higher pay is something we want for everyone.

"That is why the Chancellor announced the National Living Wage, which starts next April at £7.20 and will reach over £9 by 2020.

"This will primarily help women, who tend to be in lower paid jobs. It will help close the gender pay gap.

"But we need to go further, and that's why introducing gender pay audits is so important."

The consultation will consider precisely what, where and when firms will have to publish and when the rules, which are due to be passed into law within the next year, will come into force.

Reaction

Nicky Morgan, Minister for Women and Equalities, said she was "delighted" the target for female board membership, which was set in 2011, has been met.

"But while I am proud of the progress made, there can be no room for complacency when it comes to securing equality for women," she cautioned.

"That is why today, we are committing to eliminating the gender pay gap in a generation.

"This is not just the right thing to do, it makes good business sense: supporting women to fulfil their potential could increase the size of our economy by 35 percent."

Michelle Mone, founder of the Ultimo underwear company, described the pay disclosure requirement as "absolutely fantastic".

She said: "Women should rightly have the same expectation of good pay and progression as men, wherever they choose to work."

Lib Dem former equalities minister Jo Swinson accused the PM of "failing to recognise the urgency of tackling the gender pay gap".

She said: "It is more than 40 years since the Equal Pay Act, so saying we can afford to wait for another generation to close it is, to put it mildly, unambitious.

"The UK economy is currently missing out on the talents of too many women. 

"In government, my Lib Dem colleagues and I fought tooth and nail with the Conservatives to get them to agree to even minimal changes to help close the gender pay gap.

"They refused to introduce these exact plans for five years, only relenting in March after huge pressure from the Liberal Democrats in government."

Labour's equality spokeswoman Gloria De Piero described the announcement as "good news", but called for the government in London to go further.

She said: "For pay transparency to make a real difference, we need to have an annual equal pay check which measures progress and recommends what action needs to be taken - a move the government voted against earlier this month."

 

IRN