The Gender Pay Gap: Why Women Still Earn Less, and What Must Change

Money isn’t just about everyday choices - it’s about agency, freedom, and equality. When women earn less than men, it's not merely an economic statistic; it's a barrier to autonomy, opportunity, and long-term security. The gender pay gap in the UK reflects systemic inequalities shaped by workplace cultures, historic norms, care burdens, and policy gaps. Read the data here!

What is the Gender Pay Gap in the UK?

• Across all UK employees, women earn around 13% less per hour than men, roughly £2.39 less per hour

• Among full-time workers, the gap narrows but persists: women earn 7% less per hour, or about £1.36 less 

• The discrepancy widens sharply with age: workers aged 40–49 face a 16.5% gap, and those aged 50–59 endure a hefty 18.9%, meaning women in that age group work up to 69 days a year for free 

The pay gap begins at graduation

Earnings inequality isn’t just an end-of-career issue, it starts right out of university. Financial Times analysis shows that five years post-graduation, male graduates earn a median of £34,700 compared to £30,400 for women, a 14.1% gap (Financial Times).

Even with the same degree, men and women often embark on different career paths: for example, male mathematics graduates entering tech roles earn an average of £49,600, while their female counterparts in teaching earn around £34,300. This pattern explains why the gap emerges early and compounds over time (Financial Times).

Where Does the Pay Gap Come From?

Occupational Segregation and Sector Inequities

Women are overrepresented in lower-paid roles, such as care, education, and retail—while underrepresented in high-paying industries like tech and finance. Research highlights that this "horizontal segregation" is a central driver of pay disparities (ONS).

The Motherhood Penalty and Unpaid Care

Career interruptions and reduced working hours, usually due to caregiving, significantly impact earnings. The gap starts widening notably around age 30 and increases with each decade, especially after motherhood (ONS).

Seniority and Leadership Gaps

Women remain rare in top roles, only about 10 female CEOs lead FTSE 100 companies, and though women across FTSE 350 boards have increased to 43.4%, leadership parity remains distant The Times.

Structural Underinvestment in Female-Dominated Work

Female-intensive sectors like healthcare, education, and social care often suffer from chronic underfunding, diminishing pay and progression opportunities (The Guardian).

Lack of Transparency

Greater transparency works: UK firms with 250+ employees must report gender pay data. Research shows this alone cuts the gap by about 18% by curbing wage growth disparities and pushing better practices arXiv.

Sectoral and Regional Disparities

• The UK government’s Valuation Office Agency (an executive agency of HMRC) reports a mean gender pay gap of 6.9%, with a median gap of 4.4%, and a mean bonus gap of 12.8% (Valuation Office Agency).

• For FTSE-listed banks, progress is slow: HSBC’s median pay gap is 46.7%, Barclays 29.7%, and NatWest Group 27.7%. Bonus gaps are even more stark: HSBC has a 587% mean bonus gap, Barclays is 63.4%, and NatWest 32.6%.

• Gender pay gaps vary geographically: South East England has a 17.8% gap, putting Women’s Pay Day as late as 7 March 2025. London clocks in at 14.9%, with Pay Day on 23 February TUC.

The human cost

• Pay gaps translate into lifetime inequality, affecting pensions, savings, and security in later life. Women are more likely to experience income poverty in retirement due to cumulative pay disadvantage.

• Women facing lower pay also face diminished negotiation power, fewer raises, and fewer chances to close the gap over time.

• The imbalance is not just unfair, it undermines women’s autonomy and safety, especially when compounded with other inequalities like race, disability, or social class.

Paths Towards Equality

Policy Change & Legislation

• Equal Pay laws have existed since 1970 and evolved via the Equality Act 2010. However, enforcement is weak, and gains have been slow.

• Stronger enforcement of pay transparency, sanctions for non-compliance, and expanding lower thresholds for reporting could help accelerate progress (GOV.UK).

• Public investment in childcare and shared parental leave could help reduce the motherhood penalty and reinforce women’s ability to stay in the workforce.

Workplace Practices

• Companies must adopt transparent pay bands, fair performance systems, and actively promote women into leadership roles.

• Flexible working arrangements must be respected, not penalised through slower promotion or diminished pay.

Personal and Community Action

• Know your worth: Women should confidently negotiate starting salaries and raises, without defaulting to self-doubt.

• Speak up for transparency: Support and demand workplace pay audits and open dialogue on gender equity.

• Intersectional awareness: Recognise how gender intersects with race, disability, and class, and advocate for policies that address overlapping inequities.

Why Closing the Pay Gap Is Essential

Earning less isn’t a “minor inconvenience”- it’s a structural inequality with lifelong consequences. But the pay gap also represents a feminist issue at its core: inequality not only persists, it compounds. It chips away at financial autonomy, devalues women’s work, and reinforces societal patterns that disadvantage half the population.

This is not inevitable. Policy change, workplace transformation, societal reframing of care, and bold feminist action can narrow, and someday close, the gender pay gap. But it takes commitment, accountability, and vision: for pay to equal power, and money to mean freedom for all.

July 2025