Gender pay gap report 2025
Download the British Business Banks Gender and ethnicity pay gap report - 2025
Published annually, our Gender Pay Gap report allows us to track an important measure of gender equality at the British Business Bank, and to devise strategies to improve diversity, equity and inclusion more broadly as well as the measure specifically.
For the third year, we are also reporting our Ethnicity Pay Gap data. Whilst it is not currently a statutory requirement to report on our ethnicity pay data, we believe doing so is an important indicator of our intent in driving greater diversity, equity and inclusion.
One of our key strategic objectives as an organisation is to unlock the potential in people and places by ensuring entrepreneurs can access the finance they need, regardless of where and who they are. If we truly wish to support smaller businesses to achieve this goal, it is vital that we apply a similar philosophy to diversity, equity and inclusion within the British Business Bank.
That means putting people and culture at the heart of our organisation, empowering diverse talent through challenging work that makes a difference, and by ensuring diverse perspectives are being well represented within our own business.
Gender pay
The year in review shows our median gender pay gap has increased by 0.3 percentage points to 18.1% exceeding the level reported in 2024. Similarly, our mean gender pay gap has risen by 4.4 percentage points to 16.1%.
On a more positive note, our median bonus gap has reduced by 0.6 percentage points to 37.0% compared to last year, whilst the mean bonus gap has increased by 2.2 percentage points to 30.6%.
Our analysis highlights that, while we have successfully maintained strong female representation at our Executive level, gender imbalance remains a challenge within middle management and other senior roles.
We acknowledge that the rise in both the mean and median gender pay gap may be concerning, however closing these gaps is a complex, long-term effort rather than a quick fix. The Bank remains fully committed to addressing these disparities and driving meaningful change.
Ethnicity pay
The year in review shows our median ethnicity pay gap has increased by 8.4 percentage points to 25.0% and our mean ethnicity pay gap of 18.7% has increased by 2.7%. Additionally, our median and mean ethnicity bonus gaps now stand at 35.3% and 39.7% reflecting a reduction from the 2024 figures of 43.0% and 45.9%.
To gain deeper insight into the factors influencing these disparities, we have analysed the data across different ethnic groups, including Black, Asian, Mixed or Multiple Ethnic groups and Other Ethnic Minority backgrounds, alongside White colleagues. Our findings show that the ethnicity pay gap is most pronounced among our Black or Black British colleagues, who remain disproportionately underrepresented in senior roles. Addressing this imbalance remains a priority, and we are committed to taking meaningful action in the coming years to drive progress.
Due consideration
Over the past year, we have strengthened the foundations needed to drive long-term progress on our gender and ethnicity pay gaps. The Bank has taken a number of tangible actions to make our people processes more inclusive and to support increasing diversity with our leadership pipeline.
Across 2025/26, we updated our recruitment framework, including revising job description tools and templates to incorporate gender-neutral and inclusive language, clarifying essential and desirable criteria and making flexible working options explicit. We also introduced updated effective recruitment training for hiring managers, focused on mitigating unconscious bias and improving the consistency of assessment and decision-making. In addition, we strengthened expectations of external recruitment partners, updating our agreements so that agencies must meet defined standards and provide diverse shortlists wherever possible.
We have also enhanced the visibility and oversight of pay gaps at the Bank, with internal management information being produced on both our Gender Pay Gap and Ethnicity Pay Gap. This enhanced reporting provides near real-time insight into how recruitment, internal moves and organisational change affects our pay gaps.
Although these improvements are not reflected in a reduction in the figures reported in our 2025 snapshot, our internal analysis indicates that we expect the actions we have taken to contribute to a material reduction in our statutory Gender Pay Gap by our 2026 snapshot, whilst the Ethnicity Pay Gap is likely to remain more stable unless deeper structural representation shifts occur.
These actions taken together reinforce our commitment to driving long-term progress. We know that closing our gender and ethnicity pay gaps requires sustained commitment to representation within higher-paid roles. Our Board and Executive team remain focused on increasing diverse representation in leadership.
Louis Taylor, CEO, British Business Bank