Shocking UK Study Reveals Huge Class Pay Gap: Working-Class Earn £6,000 Less
A new study conducted by the Social Mobility Foundation has shed light on a significant class pay gap in the UK, highlighting the stark disparity between the earnings of working-class individuals and their more affluent counterparts. The research revealed that professionals from poorer upbringings earn an average salary of £45,437, which is 12% lower than the £51,728 earned by those from more privileged backgrounds.
In addition to the class pay gap, the study also uncovered a gender disparity. Women from working-class backgrounds face a staggering 19% pay gap, with the average professional salary for all women (£43,779) significantly higher than the average for women from working-class backgrounds (£36,737).
The findings of this study, based on research conducted from 2014 to 2022 using quarterly Labour Force Surveys, highlight the urgent need for action to address this issue. Alan Milburn, Chair of the Social Mobility Foundation and former Labour Health Secretary, emphasized that professionals from working-class backgrounds should not be paid significantly less than their peers in the same occupation and called for government intervention.
Milburn asserted that it is time for the government to mandate the reporting of socioeconomic background data, just as they did with Gender Pay Gap reporting. By measuring the Class Pay Gap and ensuring transparency in pay disparities, employers and policymakers can take necessary steps to rectify the situation.
Chris Percy, a visiting research fellow at the University of Derby who analyzed the data on behalf of the Social Mobility Foundation, urged employers to disclose pay gap data to facilitate meaningful change. He highlighted the importance of understanding and addressing socioeconomic background pay gaps, as businesses need a diverse workforce that brings diverse talent and perspectives.
Kevin Ellis, senior partner at PwC UK, emphasized the impact of the class pay gap not only on society but also on businesses and the economy as a whole. Ellis acknowledged the benefits of improving workforce diversity and stressed the importance of collecting socioeconomic background data to drive positive change.
The study’s findings have sparked a crucial conversation about the need to address the class pay gap and take concrete steps towards equality in the workplace. With the representation of diverse socioeconomic backgrounds, businesses are better equipped to thrive in an increasingly competitive global landscape.
As the Social Mobility Foundation’s study highlights, it is imperative that policymakers, employers, and individuals come together to tackle this issue head-on. Closing the class pay gap is not only a matter of fairness but also a strategic move that fosters innovation, inclusion, and sustainable economic growth.