Gender pay gap ‘largely unchanged’ as most UK employers report disparities

-

The UK’s median hourly gender pay gap now stands at 8.6 percent for the 2024-25 reporting period, representing only a slight improvement on last year’s figure of 8.95 percent. Although marginal, the reduction highlights the slow pace of change despite ongoing scrutiny. Research released in January suggests that suggests that it could take another it might take up to 40 years to close the gender pay gap in the UK.

A total of 10,650 employers submitted their reports before the deadline. With around 11,000 businesses required to report, this marks a compliance rate of more than 95 percent. The proportion of late submissions has decreased significantly in recent years, from 14 percent in 2020-21 to 9 percent in 2023-24 and now down to approximately 5 percent.

Of those that reported on time, 8,294 disclosed a gender pay gap in favour of men. This mirrors the previous year’s data, in which 8,101 companies (78 percent) reported a male-favouring gap. In 2020, that figure stood at 5,667 (80 percent), indicating a slow but consistent trend towards narrowing the gap.

HRreview Logo

Get our essential weekday HR news and updates.

This field is for validation purposes and should be left unchanged.
Keep up with the latest in HR...
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

Women still underrepresented in senior roles

The composition of leadership roles shows little movement. Women continue to make up around 42 percent of employees in the top quartile of earners and 46 percent in the upper middle quartile. These proportions are virtually the same as the previous year’s figures, suggesting limited progress in elevating women to senior or higher-paid roles.

Certain sectors remain significantly behind the national average. Sifted data shows that financial firms are among the worst performers, with Atom Bank reporting a median hourly gender pay gap of 32.4 percent, Checkout.com at 21.3 percent and Revolut at 12.7 percent. Similarly, analysis from UKTN places the average gap in the tech sector at 17.5 percent, well above the national figure.

These disparities indicate that women in finance and tech continue to face structural barriers, with limited representation in senior leadership and persistent pay inequality.

Accountability and education key to closing the gap

Industry professionals are calling for greater accountability across organisations. Alex Pusenjak, VP People and Culture at order management system Fluent Commerce, said that organisations need to take serious action.

“Words are not enough. The gender pay gap isn’t an ‘issue’ for the CEO or the Senior Leadership Team to ‘resolve’. Systems and processes have to be adopted where everyone has accountability to ensure employees are being remunerated fairly and equally, regardless of their gender,” Pusenjak told HR Review.

“To ensure gender and pay equity, leadership teams need to be educated on what it is and why it’s important. Only then can organisations start thinking about the ‘how’. It’s important to make the business case for Diversity, Equity & Inclusion, incorporating it to everything from the beginning.”

He also noted the value of Employee Resource Groups in driving measurable progress, adding that shared responsibility is essential for any real progress to be made.

“The UK’s gender pay gap will not come down unless we all take responsibility to reduce it. Employers need to step up and provide women with equality in the workplace and pay them what they’re worth – the same as men.”

Alessandra Pacelli is a journalist and author contributing to HRreview, where she covers topics including labour market trends, employment costs, and workplace issues.

Latest news

Jennifer Liston-Smith joins Halo Workplace Nurseries board

HRreview columnist Jennifer Liston-Smith has joined Halo Workplace Nurseries as chief purpose officer to help develop its workplace nursery compliance platform.

Staff turn to unauthorised AI as demand outpaces workplace policies

Employees are increasingly using AI tools without approval, raising concerns about data security, governance and workforce retention.

Employees increasingly building businesses around their day jobs

More workers are launching businesses alongside full-time employment, with many incorporating companies during evenings, nights and lunch breaks.

Chronic stress becoming ‘normalised’ at work, psychiatrist warns

Workers are increasingly treating chronic stress and exhaustion as normal, despite growing concerns over burnout and mental health.
- Advertisement -

Targeted hiring grants beat tax cuts in tackling youth jobs crisis, report says

Expanding targeted hiring schemes would be a more cost-effective way to tackle youth unemployment than broad tax cuts, a report says.

Bar Huberman: Inclusion shouldn’t stop when Pride Month ends

Despite workplaces championing Pride Month, evidence shows that many LGBTQ+ employees continue to experience discrimination at work.

Must read

Ingrid Ødegaard: How to combat video call fatigue whilst working from home in 2021

"We now need to address instances of employee fatigue after a day of consecutive video meetings. We can use the technology to our advantage to create a healthier, happier relationship with work."

Improving Iceland’s Employee Engagement

The 2009 Sunday Times survey of the Best Big Companies To Work For in the UK ranked Iceland 14th in their top 20. Susan Yell the HR Director for Iceland explains how they got there.
- Advertisement -

You might also likeRELATED
Recommended to you