A sharp increase in the cost of childcare has worsened a “motherhood penalty”, causing the UK’s gender pay gap to widen and pricing many women out of work altogether, a report has shown.
Accountancy company PwC found in its Women in Work index that the nation’s average pay gap widened by 2.4 percentage points to 14.4 per cent in 2021.
This shows that UK companies have taken a step back when it comes to gender parity, as the gap between what the average man and the average women are paid each hour has widened.
At the rate the pay gap is closing, it will now take more than 50 years to reach gender pay parity, PwC said.
Furthermore, the UK dropped five places in the firm’s annual index of women’s employment outcomes, which ranks 33 countries that are members of the Organisation for Economic Co-operation and Development.
The UK stood in 14th place in 2021, down from ninth place in 2019, meaning that as well as the pay gap, indicators such as the female labour force participation rate has declined and more women have become unemployed.
Are you working in a toxic office? — in pictures
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Nearly 60 per cent of employees in the region have experienced toxic behaviour in the workplace, a McKinsey Health Institute study found. Getty -
Entrepreneur Emma Burdett, 43, says she suffered a mental breakdown after being bullied when she worked in a sales role in Dubai. Photo: Emma Burdett -
Bader Shahin, 36, says he was confused and distressed after his boss began to humiliate him. Photo: Bader Shahin -
Account director Caroline Perch, 35, said she moved back to the UK due to the toxic culture in a number of offices. Photo: Heather Broderick -
The survey found 66 per cent of respondents reported mental health challenges and 55 per cent distress, compared to 32 per cent globally.
Around the world, progress towards gender equality in work was set back by at least two years due to the Covid pandemic, the report found.
Women’s employment losses from Covid were relatively worse than men’s.
Moreover, childcare costs have skyrocketed in the UK since 2015 while wage growth has slowed, PwC said.
Average nursery costs per week rose by more than a fifth between 2015 and 2022, while average weekly earnings rose by 14 per cent.
And net childcare costs represented almost a third of the income of a family on the average UK wage, compared to as little as 1 per cent in Germany.
It means that women have born the brunt of higher childcare costs when it comes to their careers, the report suggested.
Is working from home here to stay — in pictures
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Working from home or hybrid working – splitting the week between the workplace and home – has become the "new normal" for many. Getty -
More employees are looking for jobs that can be done remotely. Getty -
Middle East law firm Al Tamimi and Co says in an online briefing document that "the UAE is shifting to more flexible working arrangements". Getty -
Working from home has its challenges, with the need for a proper work space and a routine - include healthy eating. Getty Images -
A survey from the property company Savills published in May found that seven out of ten Dubai employees had returned to their offices for at least some days of the week. Bloomberg -
Advances in technology – notably Zoom and Microsoft Teams, and file sharing – are also key to the growth of working from home. Reuters
“The motherhood penalty is now the most significant driver of the gender pay gap and, in the UK, women are being hit even harder by the rising cost of living and increasing cost of childcare,” said Larice Stielow, senior economist at PwC.
“With this and the gap in free childcare provision between ages one and three, more women are being priced out of work.
“For many, it is more affordable to leave work than remain in employment and pay for childcare, especially for families at lower income levels.”
Top 20 cities in the world with best work-life balance — in pictures
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1. Copenhagen in Denmark is the best city to live in for work-life balance. Alamy -
2. Reykjavik, Iceland, ranks second, with a short commute time and plenty of paid holidays. Corbis -
3. Oslo is the most populous city in Norway and the third-best city in the world when it comes to work-life sway. -
4. Taking fourth position is Helsinki in Finland. One factor that the capital city stood out for was its happiness and well-being. -
5. Stockholm, Sweden, scored highly for the average number of holidays taken per capita. Getty Images -
6. Frankfurt is Germany's best city for work-life balance. AFP -
7. Linz in Austria ranks seventh. Getty Images -
8. Klagenfurt in Austria has an average of only nine minutes' commute time. Unsplash / Katie Archibald -
9. The Hague in The Netherlands records a happiness score of seven out of 10. Alamy -
10. The small Swiss town of Basel ranks 10th. Getty Images -
11. People in Austria's Graz get an average of seven hours and 22 minutes of shut-eye each night. Weinhaeupl / Osterreich Werbung -
12. Dresden, the capital of Saxony in Germany, is the 12th best city in the world for work-life balance. Getty Images -
13. Bern, Switzerland, has a happiness score of eight out of 10. Unsplash -
14. The average number of hours worked in Hannover, Germany, is 1,386. Unsplash -
15. Vienna in Austria ranks high for work-life balance. AFP -
16. Lausanne is one of four Swiss cities in the top 20. Photo: AllDetails / Regis Colombo -
17. Geneva, Switzerland, is the 17th best city in the world for a good work-life balance. Getty Images -
18. Rotterdam residents work an average of 1,440 hours per year. Photo: Rotterdam Partners -
19. Innsbruck in Austria, where residents work 1,611 hours per year. Getty Images -
20. The Netherlands' capital city is not the country's best for work-life balance, with Amsterdam outranked by The Hague. EPA
Alongside less expensive childcare, societal attitudes about gender roles need to shift to tackle the motherhood penalty, the analysis suggested.
It found that fathers taking more paternity leave could pave the way for more women remaining in full-time employment in the UK, therefore improving its overall ranking in the index.
