The UK economy is losing as much as £3.5 billion each year as tens of thousands of women leave the technology sector due to stalled career progression, unequal pay and limited leadership opportunities, according to a new report released to mark Ada Lovelace Day.
The 2025 Lovelace Report: Unlocking £2–3.5 Billion, published on Tuesday, found that between 40,000 and 60,000 women are quitting the tech industry annually — a trend that experts say is undermining Britain’s ambitions to lead in digital innovation.
Although women account for only 20% of the UK’s tech workforce, they are leaving at twice the rate of men, with the greatest losses occurring among mid-career professionals — those expected to form the foundation of the nation’s digital economy. The report stresses that the issue is not women failing to enter the sector, but the industry’s inability to retain them.
More than three-quarters of women with 11–20 years of experience said they had waited over three years for a promotion, while half reported earning below-average pay for their level. Despite 90% expressing a desire to move into leadership roles, only one in four believed they could, citing poor sponsorship, unclear promotion pathways, and workplace cultures that undervalue women’s contributions.
The report estimates that the UK loses between £1.4 and £2.2 billion in productivity annually due to women leaving the sector, alongside an additional £640 million to £1.3 billion in costs from turnover as women change jobs seeking fairer pay or opportunity.
Elizabeth Anderson, Chief Executive of the Digital Poverty Alliance, said the findings highlight how digital exclusion and workplace inequality are deeply intertwined. “With women being 14–22% more likely to experience digital poverty than men, Ada Lovelace Day reminds us of the urgent need to close the gender gap in technology,” Anderson said. “Without equal access to digital tools, connectivity, and literacy, many women face a self-perpetuating cycle of exclusion.”
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The report also warns that this talent drain comes at a critical time for the UK’s digital strategy. The government aims to expand its technology workforce twentyfold by 2030, yet the sector already faces a shortfall of up to 120,000 skilled professionals across cybersecurity, infrastructure, and advanced computing.
Industry leaders have cautioned that without stronger retention efforts, the UK risks falling behind countries such as the US, Canada and Singapore. “This isn’t just about fairness — it’s an economic emergency,” one senior tech executive told Business Matters.
Marking Ada Lovelace Day, which celebrates the 19th-century mathematician and pioneer of computing, the report concludes with a warning: unless the UK tackles gender inequity and career stagnation, it will continue to “bleed talent and opportunity.”
“Women have been at the heart of technology since its inception,” the report states. “The UK cannot afford to lose the next generation of its brightest minds.”
