London Daily

Focus on the big picture.
Friday, Nov 14, 2025

UK companies have to disclose gender pay gaps. It's not enough

UK companies have to disclose gender pay gaps. It's not enough

Large UK companies are required to reveal their gender pay gaps. But the rules are failing to address inequality, according to a new report.

The research, by the Global Institute for Women's Leadership at King's College London and the Fawcett Society, concludes that the UK's mandatory gender pay gap reporting, which came into effect in 2017, "has no teeth" and is less effective than other global reporting systems which require a commitment to change.

Researchers analyzed pay gap reporting systems in six countries -- the UK, Australia, France, Spain, Sweden and South Africa -- and ranked the UK and Australian systems in joint last place for lack of effectiveness.

They assessed the gender pay gap reporting policies of each country by scoring them against 11 indicators, including accountability, transparency and enforcement.

The UK was ranked joint last because the government doesn't mandate that employers take action to address any pay gaps reported, while Australia was ranked joint bottom because company data is anonymized after it is submitted, risking a lack of accountability, the report authors said Thursday.

Spain and France were ranked first and second respectively because of laws in those countries which mean companies can face "heavy penalties" for failing to address gender inequality. South Africa was third and Sweden fourth.

The report praises the high compliance of gender pay gap reporting in the UK but calls on the government to require employers to take "remedial measures" to close the gender pay gap, rather than just "monitoring" the figures. Without the need for action, the system "has no teeth" authors said.

What needs to be done?


The report urges the government to make it a legal obligation for companies to publish gap-reducing "action plans" and to fine those who do not report gender pay gap data.

It also says the threshold for gender pay gap reporting should be reduced from companies with 250 employees to 50, to capture more workplaces.

Rosie Campbell, director of the Global Institute for Women's Leadership at King's College London, told CNN Business that the UK's gender pay gap was at risk of becoming worse.

"You can put your gender pay gap out there, and nothing happens," Campbell said. "Whereas a lot of other [reporting] mechanisms around the world [ask for] things they're doing to help eliminate the gender pay gap, such as around parental leave."

According to the UK's Government Equalities Office, between 2017/18 and 2018/19, around half of the gender pay gaps reported by UK employers narrowed. Though, by that measure, half also either stayed the same or widened, the report authors warned.

Official figures also indicate that men continue to be paid more.

The Office for National Statistics (ONS) estimates that in 2020 -- the latest data available -- the gender pay gap stood at 15.5% in the UK, which was down slightly from 17.4% in 2019.

Felicia Willow, interim chief executive at the Fawcett Society, said in a statement that more action was needed.

"Gender equality is good for business, good for our economy, and good for employees. Unfortunately, this report clearly shows just how far behind the UK is from comparable countries in reducing its gender pay gap. Reporting without action is not enough."

The Government Equalities Office said in a statement to CNN Business: "The Gender Pay Gap reporting regulations have helped to motivate employers and focus attention on improving equality in the workplace. Lots of positive work has been done by employers since the scheme began, and ONS figures show that the gender pay gap stands at a record low."

Newsletter

Related Articles

0:00
0:00
Close
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
Tom Cruise Arrives by Helicopter at UK Scientology Fundraiser Amid Local Protests
Prince Andrew and Sarah Ferguson Face Fresh UK Probes Amid Royal Fallout
Mothers Link Teen Suicides to AI Chatbots in Growing Legal Battle
UK Government to Mirror Denmark’s Tough Immigration Framework in Major Policy Shift
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
National Grid Posts Slightly Stronger-Than-Expected Half-Year Profit as Regulatory Investments Drive Growth
UK Business Lobby Urges Reeves to Break Tax Pledges and Build Fiscal Headroom
UK to Launch Consultation on Stablecoin Regulation on November 10
UK Savers Rush to Withdraw Pension Cash Ahead of Budget Amid Tax-Change Fears
Massive Spoilers Emerge from MAFS UK 2025: Couple Swaps, Dating App Leaks and Reunion Bombshells
Kurdish-led Crime Network Operates UK Mini-Marts to Exploit Migrants and Sell Illicit Goods
UK Income Tax Hike Could Trigger £1 Billion Cut to Scotland’s Budget, Warns Finance Secretary
Tommy Robinson Acquitted of Terror-related Charge After Phone PIN Dispute
Boris Johnson Condemns Western Support for Hamas at Jewish Community Conference
HII Welcomes UK’s Westley Group to Strengthen AUKUS Submarine Supply Chain
Tragedy in Serbia: Coach Mladen Žižović Collapses During Match and Dies at 44
Diplo Says He Dated Katy Perry — and Justin Trudeau
Dick Cheney, Former U.S. Vice President, Dies at 84
Trump Calls Title Removal of Andrew ‘Tragic Situation’ Amid Royal Fallout
UK Bonds Rally as Chancellor Reeves Briefs Markets Ahead of November Budget
×