The UK’s gender pension gap has fallen to its lowest level since records began, according to new research. However, despite recent improvements, women pensioners still receive an average of £7,200 less each year than men.
New analysis from trade union Prospect has found that the gap, which measures the difference between the pension income of men and women, stood at 32.9% in 2023-24.
This marked a fall of 3.6 percentage points on the previous year, which is the largest annual reduction Prospect has recorded since it started collating data eight years ago.
Sue Ferns, senior deputy general secretary of Prospect, said: “The continuing reduction in the gender pension gap is welcome. However, […] progress remains far too slow, and it is of particular concern that the gaps in some public sector pension schemes are even worse than the average.”
Ferns highlighted positive recent progress, such as work by the Local Government Pension Scheme (LGPS) on measures to address the gender pension gap issue.
Since last month, LGPS rules have allowed unpaid maternity leave to become automatically pensionable. Other changes include mandatory reporting of gender pension gap data, as well as making shared parental leave and adoption leave pensionable.
“The government’s agreement to assess these measures for other schemes is a huge step in the right direction, and others should follow their example,” Ferns added.
Proposals for public sector schemes such as the Civil Service Pension Scheme are currently under review by the Government Actuary’s Department.
Narrowing the gap
Several long-term social and economic trends have contributed to the steady decline in the gap, Prospect’s report stated. These include the narrowing of the gender pay gap, greater participation of women in the workforce, and increased enrolment of women in pension schemes, particularly among part-time workers.
Reforms to the state pension system, including the introduction of Home Responsibilities Protection and the newer state pension arrangements, have also strengthened women’s pension entitlement over time, the trade union said.
In addition, women remain more likely than men to be members of defined benefit (DB) pension schemes, especially in the public sector.
However, Prospect argued that continued progress cannot be taken for granted. The union warned that future policies could put these gains at risk unless the government continues to address structural inequalities within pension systems.
Ferns explained: “We cannot become complacent that things will continue to improve. There is a real political threat from those who wrongly characterise this cost-of-living issue as part of the so-called culture wars, and who would seek to shut down public sector schemes to new entrants.
“If carried out, this could reverse all recent progress, leaving millions of people worse off.”
