Introduction

At Tandem, we’re building the UK’s greener digital bank. We’re on a mission to make it easier for our customers to choose a greener lifestyle.

We know that through our 500+ employees bringing diverse backgrounds, skills and stories to the table, this means we can support our diverse customer base even better. Tandem is committed to investing in our inclusion and diversity strategy of continuous improvement. We aim to create a safe workplace for everyone, achieved by actively seeking feedback, listening to our people, helping them grow, and adapting our practices to create an inclusive culture where employees feel they truly belong.

Annual Gender Pay Gap Reporting

A big part of fostering an inclusive culture is to ensure all colleagues feel valued and are treated fairly. Forming part of our formal reporting requirements in line with the Equality Act 2010, we use our annual Gender Pay Gap report as one of the ways we track our performance and progress on driving better gender balance.

This report uses a snapshot of salary data taken on 5 April 2024. The data was used to calculate our gender pay metrics, represented in the percentage difference between male and female pay (salary) and bonuses.

Along with the metrics, this report offers some context behind the numbers as well as some of the actions we have taken, and plan to take, to reduce the gap.

This information will be published on the Gender Pay Gap service as well as on our website.

The table below shows the overall mean and median gender pay gap based on hourly rates of pay as of April 5 2024 for Tandem. It also captures the mean and median bonuses paid in the year up to April 5 2024 for the 2023 performance year.

Our Pay and Bonus Gender Gap as of April 5, 2024:

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It is disappointing to report that the latest figures from April 2024 show that the mean gender pay gap for Tandem has increased by 1.3 percentage points, moving from 33.7% last year to 35% this year. This is largely down to 10 new appointments during the period, to theSenior Leadership Team, of which 80% were male. The calculation for average gender pay gap is highly sensitive to extreme values (very high or very low salaries).

It is worth noting that this data is a snapshot as at 5 April 2024, so does not represent where we are today or where we hope to be in the future. Since April 2024, Tandem has welcomed 3 new female appointments onto the Executive team and into the SLT which is having a positive impact on already closing the pay gap.  

Colleagues Awarded a Bonus

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Tandem operate a ‘one bank’ approach to performance assessment and all employees have the same access to bonus pay. This is evident in the consistency in the percentage of men and women receiving bonus pay in 2024.  

Gender Representation by Quartiles

On the 5 April 2024, Tandem employed 493 staff of which 219 (44%) were female and 274 (56%) were male. Tandem have seen a 2% decrease in women in the workforce since our 2023 reporting.

Gender is reported in a binary way as per the current requirement for gender pay gap reporting however Tandem recognises that not all colleagues identify as male or female and we take our responsibility towards our non-binary and gender-fluid colleagues seriously.

The images below illustrate the gender distribution at Tandem Bank Ltd across four equally sized pay quartiles each containing 123/124 colleagues. There is a larger proportion of female colleagues in our lower 2 quartiles (more junior roles), and then the balance shifts to having a higher proportion of males in our upper 2 quartiles (more senior roles). This is especially the case in the Upper Quartile which has only 22% female representation and therefore is a key contributing reason for our gender pay gap.

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Tandem has seen no change to the ‘upper hourly pay quartile’ and the ‘upper middle hourly pay quartile’ since our 2023 reporting, we have seen a slight change in the two lower quartiles, a 2% increase for women in the ‘lower middle hourly pay quartile’ and a 3% decrease for women in the ‘lower hourly pay quartile’.   

Supporting Commentary

It is important to emphasise that male and female Tandem colleagues are treated equally for doing jobs that are the same and our mean gender pay gap continues to be driven by the structure of our workforce, rather than being an equal pay issue. Having greater male representation in our more senior levels continues to be the main contributor to the gender pay gap.

We also recognise the impact that external factors have on our gender representation such as the low female representation in our industry, especially in higher-paying roles, and the higher number of female applicants for our more junior roles.

Therefore, a key pillar of our Inclusion andDiversity strategy is a laser focus on achieving a better gender balance in our senior management population. Improving female representation at senior management and executive level is not only important to reduce our gender pay gap, but extremely important for the long-term sustainability and success of Tandem.

To help us in that aim we have:

• Signed the Women in Finance Charter in February 2024, a government initiative to improve gender diversity in senior positions within the financial services sector. We have committed to a target of at least 35% of senior leadership roles being held by women before the end of 2026.
• Maximised the recruitment opportunity in all our senior vacancies through scrutiny and challenge to have gender-balanced shortlists.
• Plan to launch a Gender Balance colleague affinity group for 2025, helping to raise awareness and champion this key aim of our Inclusion & Diversity (I&D) strategy, with facilitated panel discussions, profiling key events such as International Women’s Day and National Inclusion Week, advising and suggesting ways to remove barriers and delivering regular vlogs and communications.
• Continued to support hybrid and flexible working which allows for greater flexibility for working parents and provides a wider talent pool with fewer geographical barriers
• Invested in developing our female talent pipeline through our Women in Leadership Programme, which to date has supported 28 women through the 8-month programme.

We acknowledge that there is further progress needed in closing our gender pay gap and we remain committed to achieving this. With the above initiatives along with our increased focus, we are hopeful that our 2025 reporting will be a positive reflection of our efforts.

Declaration

I confirm that the gender pay gap information published in this written statement and submitted to the Gender pay gap service is accurate and has been calculated according to the requirements and methodology set out in the Equality Act 2010 (Gender Pay GapInformation) Regulations 2017.

Appendix 1: Definitions of Key Terms and Calculations

Median pay gaps: the difference between the median pay for female employees and the median payfor male employees, as a percentage of the male employee median. Medians arecalculated by ordering individual rates of pay from lowest to highest and selecting the value for the middle employee.

Mean pay gaps: the difference between the mean pay for female employees and the mean pay for male employees, as a percentage of the male employee mean. Means are calculated by summing all the individual pay rates and dividing by the number of individuals.

Hourly pay gaps: made up of all regular payments of salary and allowances during April 2024.

Bonus pay gaps: made up of all bonus and incentive payments received over the 12-month period to the end of April 2024, excluding any employees who did not receive a bonus or incentive(either due to performance or due to not being eligible to be considered for a bonus given their start date or due to their role being excluded from the bonus scheme).

Pay quartiles: Pay quartiles are prepared by ordering the population by hourly pay, from lowest to highest, and then dividing it into four equal groups (lower quartile, lower middle quartile, upper middle quartile and upper quartile) to show how the distribution of males and females varies according to each quartile.

Appendix 2: Statutory Gender Pay Gaps Disclosure

Tandem’s results, which are based on the snapshot date of the  April 2024 and the 12 months ending on this date, are shown below:

1. The difference in mean hourly pay is 35% (an increase of 1.3% from 2023 reporting).
2. The difference in median hourly pay is 30% (a decrease of 4.3% from 2023 reporting).
3. The difference in mean bonus pay is 48% (an increase of 5.5% from 2023 reporting).
4. The difference in median bonus pay is 31% (an increase of 1.4% from 2023 reporting).
5.  The percentage of female employees who received bonus pay in the 12 months ending on 5 April 2024 is 84% (a decrease of 2% from 2023 reporting).
6. The percentage of male employees who received bonus pay in the 12 months ending on 5 April 2024 is 85% (static from 2023 reporting).