Vestd analysis of data published by the Department for Work & Pensions has revealed that one in 50 men are part of a company share scheme or profit sharing in the UK, compared to just one in 100 women.

This inequality persists from last year's analysis of data from 2021-2022, showing no improvement in the percentage of women participating in a share scheme or profit sharing compared to men.

However, the new data shows a 1% increase in the total number of adults in the UK with savings and investments as part of a company share or profit sharing scheme. This has risen from 1% in 2021-2022, to 2% in 2022-2023.

Ifty Nasir, Founder and CEO of Vestd, said: “Our annual research findings show that men remain twice as likely as women to be part of a company share scheme. Despite growing awareness of the benefits of shared ownership, gender inequality in participation has not improved from 2022-2023.

“While the overall number of adults with savings and investments in a share scheme has doubled from 1% to 2% from 2022-2023, women remain significantly underrepresented.

“This data shows clearly that there is a huge amount of work to do to ensure more equal access to share schemes. Especially for the UK to continue to be acknowledged as one of the best places for businesses to offer share options.

“There is a clear opportunity for businesses to lead the way in closing this gap. Expanding access to share schemes would not only help reduce gender inequality but also drive financial security for employees, and an ‘ownership effect’ for businesses – the impact that teams having skin in the game can have on productivity and engagement.”

Just 19,990 businesses currently operate HMRC-backed share schemes, with the Enterprise Management Incentive (EMI) scheme the most popular, used by 89% of companies.

The schemes offer businesses tax-efficient methods to motivate and reward employees. They can be a major incentive to employees looking to join a business, with potentially lucrative rewards if the company’s growth goes to plan.

Vestd’s analysis shows that for every 100,000 businesses that set up new share schemes, it could generate a £1 billion boost to the UK economy.

Ifty added: “Despite their benefits, share schemes remain out of reach for many workers due to eligibility rules. Eligibility of the EMI scheme, for example, does not include part-time workers. This rules out 36% of employed women who are in part-time roles, compared with 14% of men who work part-time.

“Updating these policies would be a relatively small change, but could have a huge impact in opening up share schemes for millions more people and reducing gender inequality in workplace wealth.”

For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.