'A Victory for Common Sense!' Bosses Now Forced to Use Biological Sex in Gender Pay Gap

On 17 January 2026, a new UK rule made firms base gender‑pay‑gap calculations on employees’ biological sex, rather than self‑identified gender. The change will apply to all employers across Britain, causing companies to drop any staff who do not identify with a biological sex from the data set. Government advisers called it “a victory for common sense”, arguing it restores statistical accuracy. With the policy effective from 1 March 2026, about 70% of UK firms will report two‑sex draws, replacing the previous four‑category system. Analysts warn that the rule could reduce visibility of non‑binary workers and may face legal challenges under equality legislation.