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An element of the equality bill could be misinterpreted and backfire, according to the Confederation of British Industry.

Katja Hall, director of human resources policy at the organisation, welcomes the clarity and simplification that is provided overall by the bill and says it will encourage more diversity, especially at senior levels.

However, she claims that problems could arise from firms being asked to publish their average male and female pay.

Hall explains: 'Companies that have too few women in higher-paid roles, and are trying to attract more, could be forced to publish a statistic that would deter female applicants and compound the problem.'

In addition, the director points out that gender pay gap statistics could be misinterpreted, as they do not compare men and women who are doing the same jobs but show there are fewer female-held high-paid jobs.

The British Chambers of Commerce (BCC) has also criticised the equality bill, claiming it sends a poor message about the UK's business world.

Speaking at the BCC's annual business convention in Birmingham, David Frost, the group's director general, said the proposed legislation discourages job creation and could see the introduction of mandatory gender pay audits.

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