UK gender pay gaps continue to narrow as focus shifts from reporting to action

• The UK’s mean gender pay gap has fallen by 0.5% - from 11.2% last year to 10.7% - continuing a consistent but gradual downward trend 
• Despite almost a decade of mandatory gender pay gap reporting, progress remains slow and it would still take over 30 years to close the gap  
• The largest organisations with over 20,000 employees saw the biggest reduction in pay gaps at 1.6% - recording the lowest pay gaps to date among large organisations since reporting began in 2017 - despite slower progress often seen at this scale 
• Introduction of mandatory action plans from spring 2027 will place greater accountability on employers with 250+ staff to drive change 

The UK’s gender pay gap continues to narrow, according to PwC’s latest analysis, with another year of steady progress. As the country approaches a decade of mandatory gender pay gap reporting, progress remains sluggish, highlighting the long-term nature of gender pay inequality. 

The 2026 Gender Pay Gap Report, published by PwC, shows a decrease of 0.5% in both the mean and median hourly pay gaps, with the mean gap falling from 11.2% in 2024/25 to 10.7% in 2025/26, and the median from 8.6% to 8.1%. This continues a consistent downward trend since the introduction of mandatory reporting in 2017, when the mean gender pay gap stood at 13.4%. 

At the current rate of progress, it is estimated that it could take over 30 years to close the gender pay gap. This highlights the need for organisations to accelerate beyond reporting towards more targeted and sustained interventions. 

This year’s findings also reflect a shift in gender pay gap reporting, with policy developments across the UK and Europe, such as EU Pay Transparency Directive, placing greater focus on pay fairness and consistency, and increasing scrutiny on how organisations report on and address pay disparities. 

The planned introduction of mandatory action plans for large employers in Spring 2027 will mark a significant step forward. For the first time, organisations will be required to set out how they are addressing the drivers of their pay gap alongside their reporting - reinforcing expectations around structured action and ongoing progress tracking. 

Katy Bennett, workforce reporting director at PwC UK said: 

“After almost a decade of mandatory reporting, the gender pay gap continues to narrow – but the pace of change remains slow. Based on current trends, incremental improvements alone will not be enough to close the gap within a generation.  

“What is changing now is the expectation on organisations. Reporting has laid the foundations, but the focus is shifting firmly towards action and accountability. Mandatory action plans are an important step in helping organisations translate insight into measurable progress, ensuring that interventions are targeted, evidence based and deliver meaningful change over time.  

“Those organisations that take a more strategic, data-led approach, understanding the drivers behind their pay gaps and embedding action into their day-to-day decision making, will be best placed to accelerate progress and unlock the full potential of their workforce.” 

Sector overview 

Sectors with higher levels of female representation, such as health, hospitality and public administration, continue to report the lowest gender pay gaps. These sectors typically have more balanced workforce composition, contributing to smaller disparities. 

In contrast, financial services and related sectors continue to report the highest gender pay gaps, reflecting ongoing challenges in the representation of women in senior and higher paid roles. However, these sectors have also seen continued reductions in recent years, indicating that targeted actions can support progress over time. 

Organisation size 

The analysis shows that the average mean hourly pay gap decreased for organisations of all sizes, with the largest decrease of 1.6% for organisations with over 20,000 employees. This has contributed to the lowest pay gaps recorded to date among the largest organisations since reporting began in 2017. In comparison, organisations with fewer than 250 employees saw a decrease of 0.3%, while those with 250 to 499 employees saw a decrease of 0.7%. Each year, the largest employers (with 20,000 employees and more) continue to report the lowest mean hourly pay gaps, while smaller organisations typically show greater levels of volatility.