UK gender pay gap widens as childcare costs worsen ‘motherhood penalty’

The UK’s gender pay hole has widened as sharp will increase in the price of childcare has worsened a “motherhood penalty”, pricing many ladies out of labor altogether, in keeping with a brand new report.

The nation’s common pay hole widened by 2.4 share factors to 14.4 per cent in 2021, accountancy large PwC present in its Girls in Work index.

It signifies that the hole between what the common man and the common ladies is paid in hourly pay has acquired greater, indicating UK corporations have taken a step backward with regards to gender parity.

On the price the pay hole is closing, it can now take greater than 50 years to succeed in gender pay parity, PwC mentioned.

Moreover, the UK dropped 5 locations within the agency’s annual index of girls’s employment outcomes, throughout 33 international locations which can be members of the Organisation for Financial Co-operation and Growth (OECD) and included within the evaluation.

The UK stood in 14th place in 2021, down from ninth place in 2019, that means that in addition to the pay hole, indicators like the feminine labour pressure participation price has declined and extra ladies have develop into unemployed.

All over the world, progress in the direction of gender equality in work was set again by at the very least two years by the impression of the Covid pandemic, the report discovered.

Covid, childcare and the gender pay hole

Girls’s employment losses from Covid had been comparatively worse than males’s.

Furthermore, childcare prices have risen dramatically within the UK since 2015 whereas wage development has slowed, PwC mentioned.

Common nursery prices per week rose by greater than a fifth between 2015 and 2022, whereas common weekly earnings rose by 14 per cent.

And web childcare prices represented virtually a 3rd of the revenue of a household on the common UK wage, in comparison with as little as 1% in Germany.

It signifies that ladies have born the brunt of upper childcare prices with regards to their careers, the report steered.

Larice Stielow, senior economist at PwC, mentioned: “The motherhood penalty is now probably the most vital driver of the gender pay hole and, within the UK, ladies are being hit even more durable by the rising value of residing and growing value of childcare.

“With this and the hole in free childcare provision between ages one and three, extra ladies are being priced out of labor.

“For a lot of it’s extra inexpensive to depart work than stay in employment and pay for childcare, particularly for households at decrease revenue ranges.”

Alongside extra inexpensive childcare, societal attitudes about gender roles have to shift to be able to sort out the motherhood penalty, the evaluation steered.

It discovered that fathers taking extra paternity depart might pave the best way for extra ladies remaining in full-time employment within the UK, due to this fact bettering its general rating within the index.

Back To Top