Business leaders and trade unions have welcomed the government's approach on equal pay after trade and industry secretary Patricia Hewitt announced steps to encourage voluntary disclosure of information on women's employment.

Hewitt emphasised the need for "a cultural change" by employers and hinted that she would support mandatory annual reports by some companies on pay and recruitment.

The CBI said: "Workforce issues could be included in annual reports, but the government is right to say that this must only be where relevant." The TUC urged the government to legislate if the voluntary approach failed to remove inequalities.