A seismic new report has shattered the official narrative on pay equality in Britain, revealing the gender pay gap has been significantly underestimated for the past two decades.
The analysis, conducted by the Women's Budget Group and the London School of Economics, uncovers a critical flaw in how the Office for National Statistics (ONS) has historically calculated the disparity. The official figures have consistently excluded part-time workers, a group overwhelmingly comprised of women, thereby painting a deceptively optimistic picture.
The Hidden Millions
By focusing solely on full-time employees, the ONS methodology failed to capture the financial reality for millions. The report argues that when part-time work is factored in, the true pay gap is not the often-cited 7.7% but a staggering 14.9% for the year 2022-23.
This means the average woman's hourly earnings are nearly 15% less than the average man's, a chasm that has profound implications for lifetime earnings, pension savings, and economic independence.
Two Decades of Distortion
The most damning finding is the longevity of this statistical blind spot. For over 20 years, government policy and public perception have been informed by incomplete data.
"This isn't just a minor error," the report's authors state. "It's a systemic failure that has minimised the scale of gender inequality in the UK labour market, potentially leading to inadequate policy responses."
Why This Matters Now
The timing of this revelation is crucial. With a cost-of-living crisis squeezing household budgets, the financial penalty faced by women is more acute than ever. The hidden gap explains why economic downturns often hit women harder and why poverty in later life is disproportionately a female issue.
This report forces a major rethink of the UK's progress on gender equality and raises urgent questions about the data that shapes our understanding of the economy and society.
