The UK’s gender pay gap has extended to 14.5% – plummeting from 13th to 17th in the latest Women In Work Index – the largest annual fall of rankings experienced by any of the Organisation for Economic Cooperation and Development (OECD) countries this year.

The report carried out by PricewaterhouseCoopers (PwC’s) has shown that women face a ‘pay penalty’, earning only 90p compared to an equally qualified man earning £1. At the current rate of progress, it will take 43 years to close the gender pay gap in the UK, which overall worsens the economy and prolongs the mission to reach gender equality in tech.

Without a gender pay penalty, the total increase in UK earnings could be up to £55bn every year. This could incentivise women to rejoin the workforce, with a 5% increase in the total number of women in employment and boost the UK’s GDP by up to £125bn every year.

The UK’s gender pay gap increased from 14.3% in 2021 to 14.5%  in 2022 and is higher than the OECD average of 13.5%

The UK’s gender pay gap increased from 14.3% in 2021 to 14.5%  in 2022 and is higher than the OECD average of 13.5%. The report, which assesses progress towards achieving gender equality at work across 33 OECD countries, also finds that the UK’s gender pay gap has widened by 0.2 percentage points, making it higher than the OECD average and more than half the other 32 countries assessed on the Index.

Sheila Flavell CBE, Chief Operating Officer for FDM Group, said: “It is disheartening to see the gender pay gap widening across industry and highlights that many businesses across all sectors are falling behind the curve when it comes to fair and equal pay. Providing equal opportunities in the workplace encompasses job opportunities, training, support and guidance, but fair pay is a driving factor for many employees and a widening gap will only drive more women away from important sectors like technology. Wellbeing and safety have a huge importance in the workplace and creating a supportive atmosphere to attract and retain female talent, through means such as narrowing the gender pay gap, should be a core priority across all organisations.”

Joanna Kori, Head of People at Encompass Corporation, said: “A widening gender pay gap will do nothing to encourage women – whether they be recent graduates starting out on their path, already on a career trajectory, or thinking of change. Businesses must therefore take responsibility for prioritising equality, diversity, and inclusion, with solid outcomes that contribute to wider change and progress.”