Women in the North East earn less than men. They save less for retirement. And this isn’t just unfair – it’s holding back our region’s economy.

These gaps are often presented as national statistics, but for the North East, they are real, tangible issues affecting families, businesses, and the long-term security of women in our communities.

Pay gaps that bite

Across the UK, the gender pay gap sits at around 12.8%. In the North East, it’s slightly higher – about 13.7%. That means the average woman working full-time here earns roughly £636 a week. The average man earns £731. Over a year, that’s a gap of nearly £5,000.

This gap isn’t just a number. Take Joanne, a nurse in Newcastle, who works full-time but also cares for her elderly mother. Despite her experience and qualifications, she earns less than many male colleagues in similar roles, and her ability to save for retirement is limited. Stories like hers are common across our cities and towns.

Part-time work, career breaks, and overrepresentation in lower-paid sectors all play a role. But the effect is clear: less income, less spending power, and smaller savings. For local businesses, that means lower demand in retail, hospitality, and services that rely on household spending.

The hidden burden: the gender pension gap

The pay gap stings now. The pension gap lasts decades. (ONS link to top decile pension wealth by gender)

Women approaching retirement in the UK typically have half the pension wealth of men. In the North East, average pension pots are among the lowest in the country – around £18,000 – meaning women are particularly vulnerable.

Career breaks, part-time work, and unpaid caring responsibilities reduce contributions. Even when women are saving, their pensions grow more slowly. The result: lower income in retirement and higher reliance on state support.

For example, Sarah, a project manager from Sunderland, left work for several years to care for her children. She returned part-time and contributed to her pension intermittently. By retirement, her pension pot is significantly smaller than her male peers,’ despite a long career and professional expertise.

Why this matters for the North East economy

These disparities are more than personal issues – they are regional economic challenges.

• Workforce participation: Women leaving the labour market slows growth and reduces the pool of skilled workers.
• Household income: Lower wages and pensions mean less money circulating in local businesses.
• Social costs: Financial insecurity increases reliance on public services and local support networks.

Closing these gaps isn’t just fair – it’s economically sensible. PwC estimates that closing the gender pay gap nationally could add billions to GDP. For a region like ours, the potential impact is significant.

Where the North East can act

Many of the levers that shape pay and pensions are national. But the region can lead in practical ways:

1. Champion local employer leadership: Highlight companies that are reducing pay gaps and supporting women’s career progression. Public recognition encourages replication.

2. Boost skills and career pathways for women: Promote apprenticeships, training, and opportunities in high-growth sectors like tech, clean energy, and advanced manufacturing.

3. Raise pension awareness and support: Councils, businesses, and financial advisors can deliver workshops for mid-career women to maximise contributions and safeguard retirement savings.

4. Embed gender equality in regional strategies: Economic and investment plans should include gender equality targets, ensuring women benefit from new opportunities.

5. Amplify local stories: Share experiences of women balancing work, caring, and financial planning to drive awareness, engagement, and change.

A call to action

The gender pay and pension gaps are not abstract. They affect real women, families, and communities across the North East.

Addressing these inequalities requires leadership, campaigning, and practical action. When women are paid fairly and can save securely for retirement, communities thrive, economies grow, and the region becomes stronger.

This is not just the right thing to do – it’s smart economics.