UK Gender Pay Gap: Underestimated by Research, Higher Than EU Average

The United Kingdom continues to grapple with a persistent gender pay gap, a systemic economic disparity that demonstrably exceeds the averages found across the European Union and the Organisation for Economic Co-operation and Development. Compounding this challenge, recent academic scrutiny suggests that official estimates may consistently underestimate the true scale of this divide, prompting a re-evaluation of current measurement methodologies and highlighting the complexities inherent in achieving economic equity.

• The UK’s gender pay gap remains notably higher than EU and OECD averages.
• Official government statistics on the pay gap may consistently underestimate the true disparity.
• In April 2024, the median full-time gender pay gap was reported at 7.0%.
• Academic research suggests a 1% underestimation of the pay gap over two decades.
• The overall gender pay gap, considering all contract types, widens significantly to 13.1%.
• Occupational segregation and international comparisons highlight the severity of the UK’s position.

Official Gender Pay Gap Figures

Key Statistics from ONS

Official data from the Office for National Statistics (ONS) for April 2024 reported a median hourly gender pay gap of 7.0% for full-time employees, signifying that women earned £930 for every £1,000 earned by men. This figure represented a slight decrease from 7.5% in 2023. Interestingly, among part-time employees, women earned marginally more than men, resulting in a -3.0% gap. However, when considering employees across all types of contracts, the disparity significantly widens to 13.1%, translating to women earning £869 for every £1,000 earned by men.

Academic Research Challenges Official Estimates

The Forth Study and Underestimation

This official narrative now faces scrutiny from recent academic research. A study led by Professor John Forth from City St Georges, University of London, and his colleagues, published in late August 2025 in the British Journal of Industrial Relations, posits that the UK’s gender pay gap has been consistently underestimated by approximately one percentage point over the past two decades. According to the research, this discrepancy primarily stems from the official data’s failure to adequately weight jobs within small, young, private-sector organizations, leading to a potentially skewed national average.

ONS Response and Practical Implications

The ONS has acknowledged that such research raises pertinent questions about survey weighting methodologies. While an ONS spokesperson indicated that the overall impact on the reported gender pay gap would be “small,” they also highlighted recent improvements to their Annual Survey of Hours and Earnings. However, for an employee with median gross annual earnings of £37,430 in April 2024, a one-percentage-point difference in the pay gap—shifting from 13.1% to 14.1%—equates to an additional annual shortfall of approximately £375. This underscores the tangible financial implications of even seemingly minor statistical adjustments for individuals.

Disparities Across Occupations and International Context

Sectoral Imbalances

Analysis of occupational disparities reveals that the gender pay gap is most pronounced in skilled trades occupations, while it narrows considerably in caring, leisure, and other service sectors. Critically, there is a clear correlation between occupations with a higher proportion of female employees and lower median hourly earnings. Many roles predominantly held by women fall below £20 per hour, whereas higher-paying positions, often exceeding £30 per hour, typically exhibit a lower representation of women, indicating systemic imbalances in both workforce distribution and compensation across industries.

The UK’s Position Globally

In an international context, the UK’s gender pay gap of 13.3% (OECD data for 2023) positions it significantly above the EU average of 9.4% and the OECD average of 11.3%. This places the UK as having the 8th highest gap among 31 European countries. Among Europe’s five largest economies, the UK’s gap is more than double that of economic peers like France (6.2%) and Spain (6.2%), and considerably higher than Italy (4.1%), though slightly lower than Germany (14.2%). At the extremes, Estonia records the widest gap at 24.7%, while Luxembourg reports the narrowest at just 0.4%.

Conclusion: Towards Greater Equity

The ongoing debate surrounding the precise measurement of the gender pay gap, coupled with persistent international disparities, underscores the critical need for robust data collection, rigorous analytical methodologies, and greater salary transparency to effectively address these entrenched economic inequities.