Despite years of efforts to bridge the gender pay gap in the UK, recent analysis shows that it will take until 2065 for the gap to close, highlighting a concerning reality that progress is still painstakingly slow. A study conducted by pensions and reward company Isio analyzed data from 10,000 companies, revealing that women’s median hourly pay in the 2023-24 reporting year was 12.5% less than men’s. While this marks the lowest gap since mandatory reporting began in 2017, it remains notably higher than the 7% average gender pay gap reported by the Office for National Statistics in 2024.
Sector-Specific Disparities
The research underscores vast differences across various sectors. The financial and insurance sectors stand out with an alarming average gender pay gap of 23%, with more than 85% of employers in these industries reporting gaps exceeding 10%. Similarly, sectors like construction, information and communication, mining, and science reveal that over 70% of companies have an hourly pay gap surpassing 10%. In contrast, public administration and defense sectors are closer to achieving pay equality, with fewer than a quarter of employers showing gaps above the 10% threshold.
Uneven Distribution in High-Pay Positions
One significant finding from Isio’s analysis is the noticeable uneven distribution of men and women in the highest pay quartile, where 59% are men and 41% are women. This disparity is troubling because nearly a quarter of reporting organizations saw no improvement or even a worsening of gender pay gaps since 2017, suggesting that the journey towards pay equity is fraught with challenges and stagnation.
Legislative Measures and Organizational Responsibilities
The upcoming Employment Rights Bill is set to introduce stricter obligations for organizations to report their gender pay gaps. They will now have to publish detailed action plans on how they intend to close these gaps, in addition to the existing requirements for reporting on ethnicity and disability pay gaps. This legislative development underscores the increasing pressure on businesses to not only disclose their pay disparities but also actively work towards eradicating them.
Mark Jones, reward and benefits partner at Isio, has pointed out the glacial pace of progress and stressed the importance of businesses embedding diversity and inclusion into their foundational strategies. While acknowledging the benefits of mandatory reporting, Jones noted that it takes time for policy changes to be reflected in the data. He advocates for employers to act proactively, enhance transparency, and develop thorough action plans that go beyond current mandates to address the pay gap issue effectively.
Call for Enhanced Actions
Despite extensive efforts to address the gender pay gap in the UK, recent analysis suggests that significant progress remains elusive. According to a study by pensions and reward company Isio, which examined data from 10,000 companies, women’s median hourly pay in the 2023-24 reporting year was 12.5% less than men’s. This finding highlights a troubling reality: at the current rate, it will take until 2065 to close the gap. Although this gap represents the smallest since mandatory reporting began in 2017, it remains considerably higher than the 7% average gender pay gap reported by the Office for National Statistics in 2024. These findings underscore that, despite advancements, achieving true pay equity continues to be a slow and challenging process, emphasizing the need for ongoing and enhanced efforts to address this enduring issue effectively. As the data indicates, bridging the gender pay gap will require persistent and robust measures to ensure fair and equal compensation.