The gender pay gap is a problem that is as persistent as it is poorly understood.
The Employment Rights Act seeks to address this problem and having a plan to do so will be a legal requirement from 2027.
With the option to start creating a plan now, it is worth businesses understanding what the gender pay gap is and how to tackle it.
What is the gender pay gap?
One of the biggest barriers to tackling the gender pay gap is a lack of understanding of the complexity of the problem.
Most people assume the gender pay gap is a difference in pay between equally skilled and experienced men and women.
For business owners using this definition, it might seem that this is not an issue and so the problem is already solved.
According to the Office for National Statistics, the UK Government define the gender pay gap as “the difference between median hourly earnings (excluding overtime) of men and women, as a proportion of men's median hourly earnings (excluding overtime).”
The latest data centres on April 2025, where it was determined that the “median hourly earnings (excluding overtime) were £20.27 for men and £18.87 for women. The resulting gender pay gap for employees was 6.9 per cent.”
There is a glimmer of hope in that the gender pay gap is slowly decreasing but this is little reassurance to the people whose lives are materially affected by unfair pay practices.
What should businesses be doing to tackle the gender pay gap?
The issue extends beyond payroll compliance and there are a number of factors that could be making the problem worse.
It is notable that the gender pay gap worsens as employees get older, signalling that promotion and pay rise practices could be to blame.
Although employees cannot be treated unfairly due to maternity and pregnancy, it is possible that not being physically present for extended periods of time could be harming a person's chance of promotion.
Similarly, a lack of understanding of and compassion for the effects of menopause may be preventing older workers from achieving their full potential.
This has sparked the need for menopause action plans to be created alongside gender pay gap plans.
As the gender pay gap is a systemic issue, it cannot be resolved swiftly.
Instead, businesses will need to review both payroll records and HR practices to ensure that fairness is maintained across the board.
If any issues arise, now is the time to begin working to resolve them so that you can make your business a more equal space for your employees to flourish.
Speak to our HR team today to learn more about tackling the gender pay gap.