Evolution of women's financial independence: The transformation of financial landscape over the past five decades
Taking a Stroll Down Money Lane: Women's Financial Journey Through the Years
Money, a vital aspect of our lives, has been a topic of heated discussions for women in the UK since time immemorial. In 2025, opening a savings account or striving for pay parity may seem like a given, but it wasn't so long ago when women fought tooth and nail for these rights.
This International Women's Day, let's take a walk down memory lane and explore the transformation of money matters for the fairer sex.
Women and Money: A Journey Through Time
Saving and Spending
1975: Women's bank accounts and credit:
It is hard to imagine a world where opening a bank account under your own name was an obstacle. However, it was a reality faced by numerous women until just five decades ago. The Sex Discrimination Act of 1975 abolished the discrimination against women seeking services like loans or credit. Prior to this, single women would need a signature from their father to apply for loans or credit cards.
1982: Drinks on Us? Think Again:
Pubs were no safe haven for many women for much of the 20th century. It was perfectly legal to refuse service to women in English pubs until 1982. Tess Gill, a solicitor, and Anna Coote, a journalist, changed all that.
Tess and Anna were barred from a wine bar for simply standing alongside their male colleagues. They decided to challenge this law in the Court of Appeal, leading to a landmark ruling that finally put a stop to such discrimination.
Mortgages
1975: Women could finally secure their own mortgages thanks to the Sex Discrimination Act of 1975. Before then, they typically needed a man to co-sign the mortgage application.
Equal Pay
1975: It's been illegal to pay men more than women for the same job since 1975, under the Equal Pay Act.
Present Day: Despite equal pay legislation, the gender pay gap still persists in the UK, with women, on average, earning less than men – a phenomenon known as the gender pay gap. The Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE) data shows the gender pay gap at 13.1%.
The pay gap varies based on factors such as occupation, region, and age. It is larger for employees aged 40 years and over than those under 40.
Retirement
1986: The Sex Discrimination Act (Amendment) in 1986 allows women to retire at the same age as men.
2024: The Parliamentary and Health Service Ombudsman (PHSO) highlighted shortcomings in the Department for Work and Pensions' (DWP) communication of pension age changes for women.
The report recommended that 1950s-born women who were affected by these changes receive compensation between £1,000 and £2,950 each. However, the government subsequently announced that a compensation scheme could not be justified.
Present Day: The gender pensions gap stands at 30%, according to Scottish Widows. Women retire with £136,000 less than the average man (£205,000). Women, who typically retire with £69,000 in pension savings, would need to work and save for an additional 19 years to catch up with men.
On average, women take time off work for caring responsibilities, which amounts to lost pension savings of around £39,000, according to NOW: Pensions. Meanwhile, 79% of workers earning less than £10,000 are women. This is the automatic enrolment earnings threshold, which means 1.9 million women in employment are not automatically enrolled in a workplace pension, impacting their pension wealth.
Maternity Leave
1975: The UK introduced its first maternity leave legislation through the Employment Protection Act 1975. However, for the first 15 years, only around half of working women were eligible.
1993: Maternity leave legislation was extended to all working women in 1993.
Present Day: Employees must take at least two weeks after giving birth (or four weeks if they are factory workers) and eligible employees can take up to 52 weeks.
Statutory maternity pay (SMP) can be paid for up to 39 weeks. This usually equals 90% of their average weekly earnings (AWE) before tax for the first six weeks, and then the lowest out of £184.03 or 90% of their AWE for the remainder of the 33 weeks.
Despite maternity laws, there is an alarming rise in the number of women who face potential job loss during pregnancy, maternity leave, or upon returning from maternity leave. Up to 74,000 women lose their jobs annually during these periods, an increase of 37% from 54,000 in 2016.
A nationally representative sample of 5,870 was extracted from a survey of 35,800 parents to create the State of the Nation report, which found that 12.3% of women are constructively dismissed or made redundant while pregnant, on maternity leave, or within a year of returning from maternity leave.
Joeli Brearley, founder of the charity and campaign group Pregnant Then Screwed, said, "We have long suspected things are getting worse, not better. Our free advice line is ringing off the hook; it has reached a point where we simply cannot cope with demand."
Enrichment Data:
The Evolution of Financial Rights for Women in the UK
Women's financial participation in the UK can be traced back to the 17th century. Despite social and legal restrictions, women represented 12% of investors in the early Bank of England when it was established in 1694[1]. However, their roles were often limited, and they lacked control over financial governance.
During the 20th century, banking services for women expanded significantly, as banks recognized the financial power of women and began offering more tailored financial products and services.
Contemporary Financial Rights for Women
Equal Pay
The Equality Act 2010 in the UK aims to prevent discrimination in pay based on characteristics such as gender, among others. Yet, the gender pay gap remains a significant issue with women often earning less than men for work of equal value.
Maternity Leave
Women in the UK are eligible for up to 52 weeks of maternity leave, with the first 26 weeks being ordinary maternity leave and the remaining 26 weeks being additional maternity leave. Staff may receive statutory maternity pay, depending on their eligibility and length of employment.
Savings Accounts
There are no specific laws regarding savings accounts for women in the UK. However, financial institutions offer savings options for both men and women.
Pensions
Although there are no laws prohibiting women from accessing pensions, the state pension age for women has undergone significant changes. The Waspi campaign, representing women born in the 1950s, has fought for compensation for women affected by these changes.
Recent Developments and Challenges
Waspi Campaign
The Waspi campaign has raised concerns about the impact of changes to the state pension age on women born in the 1950s. Despite a ruling in their favor by the Parliamentary and Health Service Ombudsman, the government has yet to acknowledge the need for compensation.
Financial Inclusion and Equality
Efforts are being made to improve financial inclusion and equality for women in the UK. However, challenges such as the gender pay gap and unequal access to certain financial services continue to persist. Ongoing advocacy and policy changes are necessary to ensure equal financial opportunities for women.
Scientific Advancements and Women's Health
1985: Science and medicine brought a significant advancement with the approval of the contraceptive pill for use by women in the UK. It marked a turning point in family planning and improved women's reproductive health.
Present Day: P developments continue to revolutionize women's health, with a focus on preventive care, women's mental health, and blockchain technology to secure personal health records.
Workplace Wellness and Personal Finance
2003: Corporate Britain began taking a more active role in workplace wellness initiatives, focusing on physical health, mental health, and financial well-being of employees.
2019: Employee benefit providers offered programs aimed at helping employees manage their finances, such as retirement planning, budgeting, and access to financial advice.
Education and Self-development
1990: UK universities introduced courses on financial management, wealth management, and personal finance to help women gain financial literacy and make informed decisions about their money.
Present Day: Continuous education and self-development in the form of online courses, books, seminars, and workshops equip women with essential skills for financial success and overall personal development.
Women's Empowerment and Entrepreneurship
2016: Women's entrepreneurship flourished in the UK as more business support programs and initiatives were established to empower women and encourage their business ownership.
Present Day: Women-focused business networks, accelerators, and venture capitalists provide resources and support to help women-owned businesses thrive.
Parenting and Finances
2011: The introduction of shared parental leave legislation in the UK aimed to distribute care responsibilities more evenly between parents, promoting gender equality in the workplace and at home.
Present Day: Parenting classes, books, and resources help new parents, particularly women, navigate the challenging journey of work-life balance and financial management during their parenting years.
2020: Support programs for single parents emerged, offering guidance, resources, and mentorship to help them budget, save, and plan for their future and their children's future, ensuring financial stability for their family.
The Future of Women's Financial Empowerment
As we journey down Money Lane, it is crucial to continue advocating for women's financial rights, highlighting the importance of education and self-development, and fostering a supportive environment for women's entrepreneurship, workplace wellness, and women's health initiatives. By doing so, we empower women to take control of their financial destinies and build a brighter, more equitable future for all.
