Workers from working-class backgrounds in the UK are earning significantly less than their more privileged peers, according to new research by the Social Mobility Foundation (SMF).
The disparity, averaging £6,287 per year or 12% less for those in the same roles, effectively means working-class professionals are unpaid for one in every eight days of work. The issue is highlighted by “Class Pay Gap Day,” which falls on 17 November—the date when these employees effectively stop being paid for the year.
The findings have reignited calls for the government to mandate class pay gap reporting for large employers. SMF argues that such measures could break down class barriers in the workplace, following the precedent set by mandatory gender pay gap reporting and proposed ethnicity and disability pay gap legislation.
Persistent Pay Gaps and Sector-Specific Disparities
The research reveals that women from working-class backgrounds face a compounded disadvantage. They earn £6,855 less annually than women from professional-managerial backgrounds. The private sector, which employs 82% of the UK workforce, sees even larger gaps. Working-class professionals in these roles are paid £7,774 less per year than their privileged peers.
Such disparities are demotivating younger workers from pursuing careers in elite professions. Nearly half of respondents from lower socioeconomic backgrounds said the pay gap discouraged them from applying to industries like law and finance. Four in ten also reported feeling discriminated against due to their class or background.
Advocacy for Change
Sarah Atkinson, CEO of the Social Mobility Foundation, stressed the business case for addressing the class pay gap. “In 2024 it still pays to be privileged. Failing to reward working-class staff properly isn’t just unfair; it’s bad for business. Employers risk missing out on top talent with diverse perspectives, leading to weaker decision-making and lower productivity,” she said.
Atkinson pointed to the success of gender pay gap reporting as an example of how transparency can drive change. She urged the government and businesses to embrace mandatory socioeconomic pay gap reporting to tackle class barriers.
Employer Efforts and Economic Benefits
Some employers have already taken steps to address class-based inequities. The Co-op became the first UK retailer to publish its socioeconomic pay gap this year. Claire Costello, Chief People and Inclusion Officer at Co-op, explained, “Publishing our socioeconomic pay gap gave us a real picture of where we stand and where we need to do better. Making sure that everyone can succeed, no matter their background, is simply the right thing to do for our communities and members.”
Research by Demos, commissioned by Co-op, suggests improving social mobility in the workplace could add up to £19 billion annually to the UK’s GDP.
Leading by Example
The Social Mobility Foundation’s annual Social Mobility Employer Index ranked PwC and Browne Jacobson as joint leaders in 2024. Marco Amitrano, Senior Partner at PwC UK, reaffirmed the importance of inclusion. “Talent is everywhere, but opportunity is not. Too many people are disadvantaged because of their background. Measuring and publishing our socioeconomic pay gap helps us focus interventions and hold ourselves accountable.”
The Index evaluates employers on their commitment to improving social mobility, offering a benchmark for organisations aiming to make workplaces more equitable.
For individuals from working-class backgrounds, pay inequity is a reminder of persistent systemic barriers. Hannah Ayane, a sales analyst and former participant in SMF’s Aspiring Professionals Programme, highlighted the need for cultural audits and proactive measures to dismantle inequities. “Actions truly speak louder than words. It’s essential that everyone has a fair shot at success and is compensated accordingly,” she said.
