Women earn £8400 a year less than men by the time they hit age 50

A press release from the TUC reveals that:

  • Women earn less than men at every stage of their career

  • The gender pay gap is at its widest when women hit 50

A new analysis of official statistics published by the TUC today (Friday) shows that the gender pay gap is at its widest when a woman hits 50, when the average woman working full-time will earn £8,421 a year less than the average full-time working man.

The research – published in advance of the gender pay reporting deadline on Wednesday 4 April – shows that women working full-time earn less than men annually at every stage of their careers from as soon as they turn 18.

Young women: The analysis reveals that the average young woman aged 18-21 working full-time starts her career on the back foot financially, earning £1,845 less than her male peers. And this pay gap is only set to increase. Women aged 22-29 working full-time can expect to earn £2,305 less than full-time working men their age.

Women in their 40s: The gap in annual earnings more than doubles by the time women hit 40, leaping up from £3,670 a year at age 30 to £7,400 a year. The TUC believes this reflects the impact of motherhood on women’s earnings, when women find they are only able to return to work in lower-paid roles or cannot progress their careers after having moved to part-time employment.

Women in their 50s: The pay gap widens further for women in their 50s, hitting £8,421 a year, as the longer-term impacts of getting stuck in lower paid work with few promotion prospects are felt and caring responsibilities – including for older relatives – continue to have an effect.

TUC General Secretary Frances O’Grady said: “Women suffer a huge pay penalty over the course of their lives, starting as soon as they set foot on the career ladder.

“Having children and caring responsibilities has a massive impact on a woman’s earnings. Far more needs to be done to help mums get back into decent, well-paid jobs after they have kids – and to encourage dads to take on their share of caring responsibilities.

“And we are crying out for higher wages in jobs predominantly done by women, like childcare and social care. Until we do, women will continue to lose out financially and many will have to make the choice between have a family or a career.

"Workplaces where unions are recognised are more likely to have family-friendly policies. So a good first step for women worried about their pay is to join a union.”

 

Editors note

To address the gender pay gap the TUC is calling on the government to:
1. Toughen up gender pay gap reporting: by increasing resources for enforcement, introducing immediate fines for non-compliance and requiring employers to publish action plans alongside their figures. Smaller employers should also be required to report.
2. End the motherhood pay penalty: by tackling pregnancy discrimination, giving dads better opportunities to share parental leave and working with employers to create more well-paid part-time jobs.
3. Improve pay for “women’s work”: through investing in key sectors like social and nursery care where many important jobs are done by women. .
4. End discriminatory pay: through mandatory equal pay audits.
Gross median annual earnings for full-time (FT) employees from ASHE 2017

Age

Median all FT

Male FT Median

Female FT Median

Difference in cash terms £

Percentage difference %

All ages

28,758

31,103

25,308

5,795

18.6

18-21

15,396

16,188

14,363

1,825

11.3

22-29

23,294

24,342

22,037

2,305

9.5

30-39

30,097

31,535

27,865

3,670

11.6

40-49

32,433

35,267

27,867

7,400

21.0

50-59

30,967

34,443

26,022

8,421

24.4

60+

27,073

29,303

22,662

6,641

22.7

- Previous TUC research found that women who become mothers before the age of 33 earn 15% less than similar women who haven’t had children. For more information please visit: www.tuc.org.uk/news/women-who-become-mothers-33-suffer-15-pay-penalty-says-tuc
- The deadline for gender pay reporting is Friday 30 March 2018 in the public sector and Wednesday 4 April 2018 in the private sector.
- The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together more than 5.5 million working people who make up our 49 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living.

TUC press office
media@tuc.org.uk
020 7467 1248

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