New figures from the Institute for Fiscal Studies (IFS) paint a compelling picture of progress – but also stark warning signs – in the fight to close the UK's gender pay gap. For young women, born into a more equal world than their mothers or grandmothers before them, the news is encouraging: those under 30 now earn less than 2% less than their male peers on average, down dramatically from around 16% in the mid-1990s.
However, this welcome trend falters as soon as women have children. According to IFS research, ten years after giving birth, mothers' hourly wages are a full 20% lower than those of their childfree counterparts – an enduring pay penalty that persists long after the initial family-friendly adjustments.
The study suggests that this widening gap is not just about individual choices or 'opting out'. Instead, it highlights how societal pressures and outdated workplace norms contribute to the problem. With more women in work and achieving higher qualifications than ever before, their entry into better-paying professions has helped narrow the initial gap – but it's the subsequent decline into part-time or lower-paid roles that exacerbates the pay penalty.
IFS experts argue that policymakers must focus on bridging this divide by supporting affordable childcare, flexible working arrangements and other family-friendly measures. Businesses also have a role to play in creating workplaces where mothers can maintain their careers without sacrificing income.
The impact of these findings extends far beyond individual women's earnings: reduced household income from motherhood can affect entire families – and the broader economy too. By failing to support working parents, businesses may miss out on valuable talent and experience, while UK households suffer from decreased financial security.