The UK’s gender pay gap will not close for another three decades if progress continues at its current rate, according to the Trades Union Congress (TUC).
Analysis of official earnings data by the union body shows that the average disparity between men’s and women’s pay stands at 12.8%, equivalent to £2,548 a year. At that pace of improvement, the gap would not be eliminated until 2056, the TUC said.
The gap varies sharply by sector. In finance and insurance it is widest at 27.2%, while in leisure services it is just 1.5%. Even in female-dominated sectors such as education and health and social care, the pay gap remains significant at 17% and 12.8% respectively.
The gender pay gap reflects the difference in average earnings between men and women across organisations and industries. Companies with more than 250 UK employees are legally required to publish gender pay data.
The TUC said the disparity means the average woman “effectively works for 47 days of the year for free” compared with male colleagues.
“Women have effectively been working for free for the first month and a half of the year compared to men,” said TUC general secretary Paul Nowak. “With the cost of living still biting hard, women simply can’t afford to keep losing out.”
The pay gap is largest among workers aged 50 to 59, a trend the TUC attributes partly to the long-term impact of women pausing or scaling back careers to take on caring responsibilities.
The union federation is calling for improved access to flexible working, expanded childcare provision and stronger parental leave policies to help narrow the gap. Nowak described the government’s recent Employment Rights Act as “an important step forward”, but argued further action was needed so parents could better share caring duties.
Business groups have previously warned that additional employment rights and benefits could increase costs for employers. Matthew Percival, director of the future of work and skills at the Confederation of British Industry (CBI), said firms were already facing significant pressures.
“The cost of doing business is leading to job cuts,” he said. “With major changes to employment laws coming, the government must take care not to add further strain.”
Under new rules, employers will be required to publish action plans setting out how they intend to reduce their gender pay gap.
A government spokesperson said ministers were “tackling the root causes of the gender pay gap” through measures including expanded childcare entitlements, strengthened protections for new mothers and changes to flexible working rights.
Despite incremental progress in recent years, the latest figures suggest that without faster reform and structural change, pay parity remains a distant prospect.
Amy Ingham
Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.
