The UK‘s gender pay gap is narrowing, but it could still take more than three decades to eliminate the disparity entirely, a study has found.
New analysis highlights the slow pace of progress that has been nearly a decade after mandatory reporting rules were introduced.
Research by PwC found that both the mean and median gender pay gaps fell by 0.5 percentage points over the past year, continuing a gradual downward trend since large employers were first required to publish gender pay data in 2017.
The firm’s latest Gender Pay Gap Report shows the mean hourly pay gap declined from 11.2 per cent in 2024-25 to 10.7 per cent in 2025-26, while the median gap fell from 8.6 per cent to 8.1 per cent. When mandatory reporting began, the mean gender pay gap stood at 13.4 per cent.
Despite the improvement, PwC estimates that, if progress continues at its current pace, it will take more than 30 years for the gap to close completely.
The findings come as scrutiny of pay inequality intensifies across the UK and Europe, with policymakers increasingly focused on transparency and accountability.
Measures such as the European Union’s Pay Transparency Directive have placed greater emphasis on pay fairness and consistency, while the UK government is preparing to introduce mandatory action plans for large employers from spring 2027.
The new requirement will mean organisations must not only publish their gender pay gap figures but also outline the steps they are taking to address the underlying causes of pay disparities.
Katy Bennett, workforce reporting director at PwC UK, said the figures showed that while reporting had helped drive progress, “incremental improvements alone will not be enough to close the gap within a generation”.
She said the focus was now shifting from disclosure towards action, with employers expected to demonstrate how they are using data and evidence to tackle the factors contributing to unequal pay outcomes.
The report highlights significant differences between sectors. Industries with higher levels of female representation, including health, hospitality and public administration, continue to report some of the lowest gender pay gaps, reflecting a more balanced workforce.
By contrast, financial services and related sectors still record some of the largest disparities, largely due to the underrepresentation of women in senior and higher-paid positions. However, PwC said these sectors have also made steady progress in recent years, suggesting targeted interventions can have an impact.
The analysis also found that the gender pay gap narrowed across organisations of all sizes. The largest employers — those with more than 20,000 employees — recorded the biggest improvement, with their average mean pay gap falling by 1.6 percentage points. They now report the lowest pay gaps since gender pay gap reporting was introduced.
Smaller employers saw more modest reductions, with organisations employing fewer than 250 people reporting an average decrease of 0.3 percentage points and those with between 250 and 499 employees recording a 0.7-point fall.
Gender pay gap reporting measures the difference between the average earnings of men and women across an organisation, rather than comparing pay for employees carrying out the same role. Campaigners have long argued that the figures are driven by broader structural issues, including the concentration of women in lower-paid occupations and their underrepresentation in senior leadership positions.
The latest findings suggest that while transparency has helped to expose inequalities and drive gradual change, a significantly faster pace of reform will be required if the UK is to achieve gender pay parity within the working lives of today’s employees.
