The publication of the gender pay gap 2025 reporting shows that the UK’s median gender pay gap this year is 8.6% – down from 8.95% the year before. When stated this way, it doesn’t look too bad, right? But let’s not pop the prosecco just yet. Behind the neat little single-digit statistic is the uncomfortable truth we should really be focused on: 78% of companies are still paying men more than they pay women for exactly the same work.
In certain sectors, like finance and tech, the pay gap is even wider – over 30% in some cases.
So yes, the numbers may be ‘better’. But the reality? It’s still a man’s world, just with better reporting. (All employers in the UK with 250 or more employees, are legally required to publish their data on gender pay gaps.)
We’re not just talking about numbers. We’re talking about people.
When we talk in stats and percentages, it’s easy to lose sight of the fact that what we are really talking about is something deeply human: people’s livelihoods, dignity, and sense of worth.
Lower pay means that women have less money to save, less to invest, and less to fall back on during tough times. Pay gaps affect pensions, housing security and even access to healthcare.
Back in the post-war years, the justification for paying men more than women, was that men were the main breadwinners and women ‘didn’t need to earn as much’ because their husband ‘shouldered the lion’s share of the financial burden’. The thinking was horribly wrong back then and it’s even worse now, because so many women are the main breadwinners for their families, raising children as single parents and taking care of elderly relatives.
In other words: when we underpay women, we are not just short-changing individuals – we’re weakening households, families and entire communities.
Who benefits from the status quo?
With zero justification for a gender pay gap, we have no alternative but to ask the hard question: who wins when men are paid more than women for the same work?
Because it’s not working women. It’s not the next generation of girls coming up through school and early careers, hoping to be treated fairly. And it’s not businesses that claim to be ‘future-focused’ while quietly maintaining legacy reward structures that reinforce inequality.
The only real ‘winners’ are those already sitting comfortably at the top of the pyramid – benefiting from a system that rewards sameness, seniority, and a very narrow definition of leadership.
The economic cost of inequality
This isn’t just a workplace problem – it’s a national, systemic, socio-economic one.
When women are paid fairly, they don’t just uplift themselves, they spend, invest, create jobs, and contribute to national growth.
We simply cannot ignore the fact that, beyond fairness, closing the gender pay gap in 2025 is simply good economics. When women have equal access to financial opportunity, they invest more in their families, communities, and education – driving long-term prosperity.
On the more micro level, equal pay boosts productivity and retention, reduces turnover costs and strengthens employer brand. Paying fairly is a strategic business advantage. Pay equity is a key driver of innovation, prosperity and social progress.
Holding onto outdated pay gaps isn’t just unfair – it’s economically reckless.
HR: We’ve got the power – and responsibility
Unfortunately, gender pay gap reporting has become a tick-box exercise for many organisations. But people professionals have an opportunity to lead real, meaningful change, far beyond mere compliance. Here’s how:
1. Go beyond the minimum
If you’re only doing what’s legally required, you’re behind. Invest in a comprehensive job evaluation and grading project and then conduct salary benchmarking. This ensures equal pay for equal work or work of equal value – regardless of job title, race, gender, or physical/mental ability.
Go step further and look at starting salaries, performance reviews and promotions. Interrogate why there are discrepancies along salary bands and then ensure that there is an action plan to correct any gaps.
2. Fix the progression pipeline
Pay gaps often emerge higher up the ladder because the ladder itself is broken. It’s time for a critical review of the promotions process to ensure that women have access to stretch roles, strategic projects and leadership development. Move beyond simple mentorship or training. Provide women with advocacy and support to progress in their careers.
3. Challenge pay norms
Get involved in remuneration and benefits, even if it’s not your area of specialisation. Companies with transparent job grades and salary bands tend to fare better than those where performance bonuses and salary increases are awarded behind closed doors. Ensure that there are structured decision-making processes, free of favouritism or bias.
4. Normalise flexibility – for everyone
Flexibility around working hours and the workplace shouldn’t be a favour granted to women. Make it part of the fabric of your company cultures and enable managers to see the value in outcomes-based leadership over presenteeism and ‘management by walking around’. Flexible working should be the norm, not a special request that needs a committee to approve it. Consider, too, whether you are merely offering ‘fake flexibility.’
5. Link progress to performance at the top
If equity matters, reward it. Develop policies that tie executive bonuses and performance metrics to diversity and inclusion outcomes. We can hold leaders accountable, not just in public statements, but in how they run their teams.
Gender Pay Gap 2025: Stop reporting and start transforming
The fact that only 5% of organisations submitted their pay gap data late this year is a sign of improved compliance. But compliance is not the same as commitment to actual change.
This moment demands more than PR spin. It requires courage to ask hard questions, challenge long-standing norms, and redesign work for equity, not just efficiency. The only way we can achieve this is if it becomes an actual strategic objective and we have senior leaders committed to long-term transformation, working with us to make the changes that are decades overdue.
