• Gender pay gap 8.2%, down from 12.9% in 2021
• North/South IT pay gap down to 9% from 13% in 2019

The gender and North/South pay gap for IT professionals is narrowing rapidly, according to an analysis of data by Integro Accounting, a leading provider of accountancy services to contractors. The analysis is based on HM Revenue and Customs (HMRC) Pay As You Earn (PAYE) records for thousands of IT professionals.

According to Integro Accounting, the median gender pay gap for IT Professionals is now 8.2%, meaning that women on average earn 8.2% less than men. This represents a significant fall from 2021, when the median gender pay gap stood at 12.9%. The gender pay gap was 10.9% in 2020, 7.6% in 2019 and 12.4% in 2018. The median annual pay for male full-time IT professionals is currently £45,826 compared to £42,068 for women.

Integro Accounting points out that while the gender pay gap for IT professionals widened during the pandemic years (2020 and 2021) its sharp fall in 2022 represents the first full year of the post-pandemic “new normal”. The widening of the pay gap in 2020 and 2021 is likely because it was skewed by the Coronavirus Job Retention (“furlough”) Scheme, which saw a disproportionate number of women furloughed on 80% of pay up to £2,500 per month, considerably lower than the median tech salary.

Christian Hickmott, Managing Director of Integro Accounting, comments: “The gender pay gap in tech is shrinking again after having widened during the pandemic furlough years. It is widely acknowledged that flexible working is one of the most effective ways of closing the gender pay gap and the tech sector is putting itself at the vanguard of this trend.”

“The tech sector has historically had a stubbornly wide gender pay gap but is now leading the way in adopting flexible working and is successfully driving its gender pay gap below the national average.”

He adds: “The move towards flexible working, together with economic uncertainty, is also providing ballast to demand for IT contractors. As big tech companies reduce permanent headcounts, they are turning to contractors on an ad hoc basis. As well as being higher paid, contractor roles often provide added flexibility, which can be ideally suited to women with caring responsibilities.”

According to Integro Accounting, the pay gap between IT professionals in the North and South of England was 13% in 2019 (IT professionals in the North earned 87% of the salary of their Southern counterparts). By the end of 2022, the pay had narrowed to just 9% (IT professionals in the North earned 91% of the salary of their Southern counterparts). The median annual pay for IT professionals in the North of England is now £43,135 compared to £47,433 in the South. The North of England includes the North East, North West and Yorks & Humber while the South comprises London, South East and South West.

According to Integro Accounting, the acceleration in the adoption of remote working practices heralded by the pandemic lockdowns has been a significant factor in closing the North/South pay divide.

Christian Hickmott says: “Access to the London market and to the highest paying jobs has always been geographically constrained. With a growing proportion of tech roles no longer requiring attendance in the office five days a week it has become much easier for top talent to compete for the highest paying jobs nationally.”

“There was an exodus of London-based workers out of the capital during the pandemic and while that trend has lost some steam, it hasn’t gone into reverse. This is vitally important as roles in emerging technologies such as artificial intelligence and quantum computing tend to be clustered in London. With more tech employers willing to allow remote or hybrid working the wealth created by these high value jobs should be more evenly distributed geographically.”

He adds: “The growth in the number of tech startups in the North of England has consistently surpassed the South in recent years. Northern cities such as Manchester, Leeds and Newcastle routinely feature in the UK top 10 for venture capital funding, salaries, and number of unicorns (tech companies worth more than $1 billion). The lower cost base of these cities has helped them close the gap on London and the acceleration of remote working is likely to continue to erode the dominance of the capital for tech pay.”