A pay gap report from retirement fund Nest has found reductions in gender and ethnicity pay gaps year on year, although striking differences remain.
The median gender pay gap within Nest’s workforce is 13.3 per cent, down from 14.2 per cent in 2024/2025. Since the corporation first reported its pay data in 2017, this represents an overall gap reduction of 13.1 percentage points.
The median ethnicity pay gap is 22.8 per cent, down from 23.6 percent in 2024/25. The median disability pay gap is 6.8 per cent, marking the first year this data has been reported.
Nest employs a diverse workforce, with 52 per cent of colleagues being women and 32 per cent being from ethnic minority backgrounds, based on employees who disclosed demographic information.
According to the pension scheme, the reduction in Nest’s gender pay gap is consistent with increased recruitment of women into higher-paid roles and more balanced representation. Similarly, the reduction in the ethnicity pay gap is consistent with changes in recruitment patterns, although under-representation at senior levels continues to contribute to the gap.
April Clark, Nest’s chief people officer, says: “We are committed to making Nest a fair, inclusive and welcoming place to work, where everyone has access to opportunities to develop and progress. I am pleased that more than 80 per cent of our colleagues tell us they are proud to work for Nest, and they recognise the value Nest places on diversity.”
Nest is currently the largest workplace pension scheme in the country, with more than 14 million members. By 2040, Nest is expected to have close to £100bn in assets.
