A NEW government initiative to urge employers to publish how they are reducing their gender pay gap is a “step in the right direction” but “structural barriers remain” for women.
Employers with 250 or more employees will be encouraged to publish the steps they are taking to reduce their gender pay gap and support employees through menopause from April, the government has announced.
The gender pay gap for employees was 12.8% in April 2025, down from 13.1% in April 2024, the latest Office for National Statistics (ONS) data says.
Bridget Phillipson MP, the Secretary of State for Education and Minister for Women and Equalities, said: “This International Women’s Day, we are celebrating all that women bring to our proud nation, as well as committing to giving back to them. That’s why I am delighted to formally launch employer action plans, which are part of our commitment to ensure women can thrive at work and tackle the gender pay gap.
“Too many women are still not paid fairly, held back at work due to inconsistencies in support or find common sense adjustments for their health needs overlooked or dismissed. We’re acting to empower women at work and work with business so we all benefit from unleashing women’s talents.”
A step in the right direction
Jess Best, Independent Financial Planner at McLaren Capital, said it’s a “step in the right direction”.
She added: “The gender pay gap and gender pension gap go hand-in-hand, both of which are hugely impacted by the caring responsibilities and societal norms we put upon women.
“For a woman to have time out of work, often to care for others, for example children, she is not in work to receive workplace pension contributions, nor the pay rises or career progressions and subsequent increased pension contributions that her male counterparts would otherwise be receiving. Introducing this scheme demonstrates that the government are starting to acknowledge the issue and whilst being small, it is a step in the right direction for raising awareness amongst employers.
“Yet we also do need to reshape cultural attitudes towards women in the workplace with greater acceptance that women can have careers, with progression if they desire, and be paid the same as men.”
Gosia Dawson, Director at Glade Financial, said structural barriers remain for women.
She continued: “The gender pay gap is not just a workplace issue, it becomes a retirement issue as well. Lower earnings throughout a career usually mean lower pension contributions, which contributes to the well-documented gender pension gap and leaves many women with smaller retirement savings.
“Encouraging employers to publish action plans is a positive step, and measures such as expanding childcare support can make a meaningful difference. However, structural barriers remain. Many women still reduce hours or step back from senior roles after having children and often struggle to return to the same level later in their careers.
“Greater flexibility around senior and part-time roles could help retain experienced talent. Menopause is another area that is still poorly understood in many workplaces, and meaningful progress will require broader awareness and practical support across employers of all sizes.”
Structural barriers remain
Matthew Knight, Chief Freelance Officer at Leapers, said this scheme only covers a percentage of the population.
He added: “This action is very much welcomed – but to see a true picture of pay disparity, we need reporting and transparency across the entire workforce, not just employees.
“Contract workers rarely fall within reporting obligations – and as growing numbers of hirers are using an increasing proportion of contractors and freelancers, it’ll be too easy to continue to pay freelancers unfairly, who already have limited protections, i.e. no minimum wage.
“The way in which we ’employ’ people has changed, and if we’re not looking at these issues holistically, we’ll continue to leave large portions of the workforce without support or protection.”
Nouran Moustafa, Practice Principal & IFA at Roxton Wealth, said the gender pay gap is very complex.
She continued: “The gender pay gap is a real issue, but the causes are often more complex than the headline number suggests. In many sectors it reflects career breaks, childcare responsibilities and differences in seniority rather than direct unequal pay for the same role. That doesn’t mean the gap isn’t serious, it means the solutions need to address the structural barriers behind it.
“Encouraging large employers to publish action plans is a positive step because transparency forces organisations to look at their own data and policies. But transparency alone won’t close the gap.
“Businesses need practical policies that keep talented women in the workforce and help them progress flexible working, proper support around maternity and menopause, and clearer pathways into senior roles. If handled properly this can move the conversation forward. If it becomes a box ticking exercise, it risks becoming exactly what critics fear: a sticking plaster rather than real progress.”
Transparency alone won’t close the gap
Rohit Parmar-Mistry, Founder at Burton-on-Trent-based Pattrn Data, said it will only be valuable if it is put into action.
He added: “Action plans are only useful if they force uncomfortable choices, not if they become another PDF on the intranet. The gender pay gap is still real and stubborn. Publishing a plan can help, but only when it names the two drivers employers hate talking about: who gets promoted, and who gets the high-paid, career-making work in the first place.
“Menopause support is similar: the fix is mostly practical, not performative. Two-thirds of women with symptoms say it affects them negatively at work, and many do not feel able to say why they are off.
“Good employers train managers, adjust absence policies, and make small changes, such as temperature control, flexibility and quiet space, that stop good people drifting out. If this stays voluntary, expect a two-tier outcome: firms with mature people ops improve, everyone else shrugs.”
