Prowess Journal

Prowess

SINCE 2002 · WOMEN IN BUSINESS

Gender Pay Gap UK 2025: Latest ONS Figures Explained

Women earn 19.5% less than men, with female bankers missing out by 40%. Why, 40 years after the introduction of the Equal Pay act, are women still earning less and why has this become “acceptable”?

The gender pay gap UK women face each year remains one of the most closely watched measures of women’s economic equality. It is often confused with unequal pay for the same role, which has been unlawful in the UK since the Equal Pay Act 1970 and is now covered by the Equality Act 2010. The gap, however, measures the difference in average hourly earnings between men and women across the whole workforce. It tells us how much less women typically earn, where those losses are concentrated, and how slowly the picture is changing.

So how big is the gender pay gap today? According to the Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE) for 2025, the median gender pay gap for full-time employees in the UK stood at 7.0% in April 2025, unchanged from 2024. When part-time workers are included, the gap for all employees was 13.1%, down slightly from 13.2% in 2024. Among part-time employees alone, women earned 2.8% more than men on average, largely because men in part-time work are concentrated in lower-paid roles. Yet the overall picture is clear: women still take home less over a working lifetime.

That lifetime shortfall has serious consequences. Lower hourly pay translates into smaller pensions, reduced savings and weaker financial resilience. Closing the pay gap is therefore not only a matter of fairness; it is a matter of long-term financial security.

What the gender pay gap UK data shows for 2025

The gender pay gap is sometimes dismissed as a myth, or explained away by maternity leave and caring responsibilities. While those factors shape earnings, they do not account for the whole gap. The ONS data shows that the full-time median gap has narrowed only gradually, from 9.4% in 2015 and 17.4% in 1997 to 7.0% in 2025. In 2024, men in full-time employment earned a median of £19.01 per hour compared with £17.68 for women.

The gap also varies sharply by sector. In 2024, financial and insurance activities recorded one of the widest gaps at 22.6%, while mining and quarrying and construction both stood above 17%. At the other end, accommodation and food service activities had a gap of just 1.9%. Even so, women are under-represented in the highest-paying roles within almost every industry, which is why seniority and occupational segregation matter as much as headline rates.

Where the gap widens for women in business

For women in business and leadership, the gap is especially pronounced. Women remain under-represented among business owners and in senior management, and those who do reach the top often earn less than male peers. Women-led businesses also tend to start with less capital and grow more slowly than male-led businesses, reflecting lower day rates, smaller contracts and a concentration in lower-turnover sectors. Supporting women-led businesses with better access to finance, networks and procurement opportunities remains essential.

The gap is present early in careers and widens with age. ONS data shows that, among full-time employees aged 22 to 29, the gender pay gap is close to zero, but it opens sharply from the mid-thirties onwards and is largest for women in their fifties. Managerial and professional roles show persistent gaps, and bonus payments widen the divide further. ONS data shows that men in full-time employment are more likely to receive bonus pay and receive higher median bonuses than women, adding to the overall earnings gap.

Part-time working plays a major role too. According to ONS Labour Force Survey data for 2024, around 41% of women in employment worked part-time, compared with around 13% of men. Part-time roles are not only lower paid per hour on average; they also offer fewer progression opportunities and less access to training, bonuses and pension contributions. This part-time penalty helps explain why the all-employee gap is nearly double the full-time figure.

In science, technology, engineering and mathematics occupations, women are still a minority, and those who enter technical fields often face slower progression and lower lifetime earnings. Increasing the number of women in STEM, through apprenticeships, returner programmes and outreach, is therefore part of closing the gap.

What employers must do now

For women in work, the first step is to treat pay transparency as a practical tool rather than a taboo. Knowing the market rate for a role, understanding how bonuses and pay bands are set, and being ready to negotiate confidently can all help to narrow the gap at an individual level. At the same time, employers must examine their own data, publish it honestly and act on it.

Gender pay gap reporting has been mandatory since 2017 for private-sector and voluntary-sector employers with 250 or more employees, using a snapshot date of 5 April each year. Public-sector bodies report on 31 March. The Equality and Human Rights Commission (EHRC) can enforce the duty. The current government has said it will require employers with 250 or more staff to publish action plans setting out how they will close their gaps, and has consulted on introducing ethnicity pay gap reporting for employers with 500 or more staff as a first step. These rules do not close the gap automatically, but they make it visible, and that visibility drives accountability.

Education and enterprise can help close the gap

Education and enterprise policy also have a role. The Alison Rose Review of Female Entrepreneurship found that advancing women’s enterprise could add billions to the UK economy, yet women still start businesses with less capital and grow more slowly than men. Meanwhile, initiatives to increase the number of women in STEM, from apprenticeships to returner programmes, are gradually shifting the talent pipeline, although progress remains slow.

Real progress will require a combination of transparent pay practices, affordable childcare, flexible working as a default, and targeted support for women entrepreneurs. Until then, the gender pay gap UK women experience will remain a measurable reminder that women’s work is still valued less than men’s, and a clear target for change.

Practical action steps for women in business

  • Check your employer’s gender pay gap report on GOV.UK if they have 250 or more staff.
  • Research market rates for your role using ONS ASHE data and sector salary surveys before pay discussions.
  • If you employ staff, calculate your own gender pay gap early and set a clear action plan, even if you are below the 250-employee reporting threshold.
  • Review bonus, promotion and flexible working policies to ensure they do not disadvantage women.
  • Use networks and mentoring programmes for women in business to strengthen negotiation skills and career progression.

Charlotte Brierley

A UK business journalist covering innovation, capital, and enterprise trends for women-led ventures. She writes data-driven analysis on funding rounds, startup ecosystems, and emerging business models - with a focus on practical insight for women navigating growth and investment. Before joining Prowess, Charlotte worked in financial communications and early-stage venture research.

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