The pink tax
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The pink tax
Consumer products such as shampoos and razors marketed to women are widely known to be more expensive than products marketed to men. This is also known as the ‘pink tax’.
But this isn’t just limited to women’s essential items. It also impacts women’s healthcare. A survey commissioned by Deloitte found that women in the UK are spending £1.5bn more than men on medical-related expenses each year. The survey, titled Women’s Health Cost Gap in the UK, found that 52% of employed women spend out-of-pocket on health each year, versus only 39% of men. Women also spend more all categories of out-of-pocket spending, including fertility, menopause, and menstrual health1.
Some good news is that the so-called tampon tax was abolished in the UK on January 1 20212.
It follows, that there are potential long-term financial consequences from the pink tax. If women spend thousands of pounds more than men on comparable products and services, this could influence a woman’s financial stability, hinder their ability to accumulate wealth, achieve economic independence and address long-term financial goals.
Sources:
1.
Deloitte, March 2024
2. Gov.uk
Take control
There’s still some way to go when it comes to gender equality issues like the pink tax. Until the powers that be take more formal practical measures, here are some steps you can take to readdress the balance.
- Don’t pay a few pounds more for multivitamins because they’re aimed at women. Ask your GP what supplements they recommend. They may suggest you don’t need anything gender specific.
- Check-in with your pharmacy or GP for free contraceptives.
- Shop smart - you can start comparing prices in supermarkets. Is it more expensive to buy disposable razors just because they’re pink? Perhaps you can opt for a gender-neutral moisturiser instead of one aimed at women.
- If you’re in Scotland, where you can access free prescriptions, visit your doctor if you think you need pessaries or other sexual health products rather than buying them yourself. Not only will you save money, but you’ll be able to receive a more accurate diagnosis the first time around.
- Get your money working harder for you. We've got a dedicated page about investing for beginners. You can open an ISA and set up a regular saving account from £25 per month.
- If you're already investing, make the most of your tax-efficient allowances for your ISA or your SIPP.
What you could do next
Start a tax efficient savings account
Invest in a Stocks and Shares ISA and pay no income tax or capital gains tax on your returns.
Explore regular saving
Making regular monthly contributions to your investments as part of a savings plan could help them grow into a sizeable sum over the long term.
Explore Easy Invest
If you don’t know where to begin, Easy Invest can help with a simple, low-cost fund suggestion.
