Research published by the Resolution Foundation has found a “rapid rise” in gender pay inequality for workers in their 30s and 40s.
By the time women who were born between 1981 and 2000 reach their 30th birthday, they can expect to be paid nine per cent less than a man of the same age. For workers in their 20s, the gap is five per cent.
The research concluded that the gap results from having children and that women can lose hundreds of thousands of pounds over a lifetime.
Laura Gardiner, senior policy analyst at the Resolution Foundation said: “Young women today face relatively little disadvantage in terms of their pay packets compared to what their parents’ and grandparents’ generation faced.
“But while many millennial women haven’t experienced much of a pay gap yet, most probably will once they reach their 30s, when they start having children. What’s more this pay penalty is big and long-lasting, and remains for younger generations despite the progress in early careers.”
The research follows on from findings by the Institute for Fiscal Studies (IFS) published in 2016, which found that while the wages of women in their 30s tend to plateau, men’s wages tend to increase.
Firms that employ more than 250 people will be required from April 2018 to publish details of any pay gap amongst their employees.