Widening the gender gap

The coronavirus pandemic is hitting women harder financially than men

WOMEN are facing the harshest economic impact of the coronavirus pandemic, new research suggests.

Figures from the Office for National Statistics show women were already paid 36% less than men on average, even before the crisis.

The average woman in the UK took home £19,563 a year in 2019, compared to £30,369 a year for the average man.

Now, charities warn changes in income and employment as a result of the crisis will lead to an increase in the gender pay gap.

Industries dominated by women, such as hospitality, leisure and tourism, and the arts, have been some of the worst affected by the pandemic, with thousands of employees let go or furloughed.

A UK-wide survey by national poverty charity Turn2Us suggests women’s incomes are expected to fall by £306 a month on average, compared to £247 a month for men.

This gulf widens in two-parent households that are both employed, with women reporting an average reduction in pay of £405 per month, compared to £309 for men.

Sara Willcocks, Head of Communications at Turn2us, said: “The gender pay gap already leaves women with much lower lifetime income than their male counterparts.

“What we are seeing now with the pandemic is that women are being more adversely affected, either because of their role as the primary carer of their children, or because of the nature of the sectors they work in.

“Many of the short term responses to the crisis are welcome, but there must be a longer term plan to close the financial gender divide.

“Without thinking now about issues that directly affect women’s economic situations, there is a risk that the coronavirus will further exacerbate inequalities and push back women’s rights.

“We urge the government to address this issue through practical policies such as mandatory gender pay gap reporting and increasing welfare benefits.”

There have been calls for the benefit cap to be suspended during the Covid-19 crisis, with single mothers hardest hit by the policy.

Figures from the Department for Work and Pensions show, as of November last year, 216,785 households in Great Britain had seen their benefits slashed due to the cap.

Of those, 128,886 were single mothers - 59% of the total.

A further 6,889 single females without children have had their benefits capped.

Separate figures covering Universal Credit show 77,180 households have also been capped since the new system was introduced.

While there is no gender breakdown available, the figures show that 45,758 of those were single parent families - 59% of the total. It is likely that most of these are single mothers.

The research from Turn2Us also reveals that single mothers face the most acute financial and social pressures due to the coronavirus pandemic.

Some 66% of single parent families anticipate that they will have £1,000 or less next month, up from 54% in February.

In addition, 42% of single parents are anticipating living on less than £500 per month.

Gingerbread - a national charity for single parents - say 90% of single parents in the UK are women, and warn that for some the financial repercussions of the coronavirus outbreak have been “devastating”.