Research and analysis

Diversity in UK Tech: executive summary

Published 26 June 2025

Industry: executive summary

The UK tech industry is one of the fastest-growing sectors, contributing significantly to the economy and driving innovation across industries. Nearly all organisations now rely on digital roles to support operations, from data analysis and cybersecurity to AI development and software engineering, highlighting the extensive influence of technology across every sector. Employing over 1.8 million people, the tech industry serves as a global hub for technological advancement.^{[footnote 1]}

However, despite its dynamism, the tech industry continues to grapple with persistent challenges related to diversity, inclusion, and skills gaps. Addressing these issues is essential for fostering sustainable growth, enhancing innovation, and ensuring equitable access to opportunities across the sector. While diversity in the UK tech industry has shown modest progress in recent years, substantial gaps remain. Recruitment of more diverse entry-level candidates has improved slowly, but beyond early-career roles, this momentum diminishes at mid-career and leadership levels, perpetuating a persistent “leaky pipeline.”  

Structural and cultural barriers result in poor retention and promotion of under-represented people. A national study examining why people in tech voluntarily left their jobs found that underrepresented minorities were twice as likely to leave their role because of unfair treatment rather than for a better job. Unfair treatment included unjust management practices, stereotyping, sexual harassment, bullying and hostility ^{[footnote 2]}.  

Unconscious and conscious biases significantly influence workplace culture, often perpetuating exclusionary environments that disproportionately impact marginalised groups, thereby hindering efforts to create equitable and inclusive organisational practices. According to the Fawcett Society’s 2023 report, 20% of men in tech believe women are inherently less suited for these roles—an attitude that reinforces exclusionary practices^{[footnote 3]}. Additionally, a pervasive “tech bro” culture, coupled with inadequate workplace flexibility, impacts women, caregivers, and individuals requiring adaptations, leading to high attrition rates among these groups. Some industry sectors see this more starkly than others; for example,  21% of data centres have no women in their technical function at all^{[footnote 4]}.  

When these structural barriers are coupled with limited accountability and insufficient tracking of Diversity, Equity, and Inclusion (DEI) initiatives, there is no meaningful progress. Then most recently, economic downturns and shifting market dynamics have slowed progress further, with budget cuts diluting or stopping DEI efforts altogether. 

Within these overarching problems, progress for different under-represented groups varies.  Gender diversity in the UK tech sector remains low, with women comprising only 21% of tech teams^{[footnote 5]}. Attrition rates are high, with one in three women planning to leave their roles due to a lack of career progression, poor work-life balance, and an unsupportive culture^{[footnote 6]}. Ethnic diversity, while showing some improvement (21% of IT specialists identify as Black, Asian, or as an ethnic minority), faces significant challenges at senior levels, with an eleven percent drop in representation^{[footnote 7]}. Efforts to enhance inclusion for ethnic minorities, which gained significant momentum during the Black Lives Matter movement, have lacked consistency in implementation and longevity, highlighting the need for more sustained and strategic approaches. Barriers to socio-economic mobility in the tech industry are significant. Only 9% of tech employees come from lower socio-economic backgrounds and earn less than their peers from affluent backgrounds ^{[footnote 8]}. 

Disability representation has grown, with 14% of the workforce identifying as disabled^{[footnote 9]}. However, disclosure remains a challenge due to the lack of supportive environments. Neurodivergent individuals face similar barriers. While awareness of neurodivergence in tech has increased, employer-reported neurodivergence rates differ dramatically from self-reported rates among technologists. Many neurodivergent professionals are reluctant to disclose their conditions due to stigma, and only 25% of employees feel their company culture celebrates neurodiversity^{[footnote 10]}. There is also limited data tracking the progression of both disabled and neurodivergent technologists and significant work remains to create environments where individuals can thrive.  

This trend is similarly evident within the LGBTQI+ community, where representation remains limited. Discrimination and fear of harassment continue to contribute to low disclosure rates, underscoring the need for more robust policies and cultural shifts to foster an inclusive and supportive environment. 

Older professionals (50+) are underrepresented, despite making up 31% of the working-age population, they only make up a fifth of the tech workforce, which threatens to exacerbate existing skills gaps^{[footnote 11]}.  

However, amidst these challenges, significant insights have emerged regarding effective strategies for driving meaningful change and fostering a more inclusive environment. 

To move forward, creating an inclusive workplace culture is paramount. Promoting psychological safety, addressing unconscious biases, and improving data collection to capture the full spectrum of diversity characteristics will enable greater transparency and support. Cultivating authentic role models, avoiding tokenism, and ensuring the visibility of successful underrepresented individuals are essential steps towards fostering an environment where diverse talent can thrive. Open communication, inclusive language, and clear DEI policies build trust and contribute to a psychologically safe workplace. 

Flexibility of work options is another vital component in enhancing diversity.  Equally, investing in training and upskilling, effective retention strategies, and transparent and equitable promotion practices can help bridge the pipeline gaps that have traditionally hindered diverse representation. Targeted initiatives, such as mentorship programs, equitable pay, and structured career progression pathways, offer a practical approach to supporting women and other underrepresented groups as they advance in their careers. These efforts not only facilitate individual career growth but also strengthen organisations by ensuring diversity in leadership—a key driver of innovation and long-term success.  By supporting diverse talent at every level—from early education to senior leadership—the industry can ensure that opportunities for growth are available to all. 

But this is not enough. For true, lasting change, industry must move from one-off initiatives and seeing (and funding) DEI as a marketing exercise. It must also accept it is not enough to “fix” under-represented individuals, it must fix cultures, processes and systems. Crucially, it must implement accountability mechanisms, ensure DEI metrics are tied to leadership performance and foster a culture that supports flexibility, disclosure, and career progression for all underrepresented groups. Clear reporting processes for discrimination and the consistent application of DEI initiatives are crucial to reducing the pervasive biases that limit diverse talent from thriving. Government policy and regulation can support this and provide valuable guardrails for industry to build upon. 

While the UK tech industry has progressed, a more strategic and unified approach is required to dismantle deeply embedded barriers to inclusion. Through accountability, structural change, and a commitment to fostering a genuinely inclusive culture, the tech industry can not only enhance diversity but also foster innovation, ensuring that the UK remains competitive in the global tech landscape.

Industry: conclusion

The UK tech industry holds tremendous potential as a driver of innovation and economic growth. However, achieving diversity, equity, and inclusion across the sector requires considered and sustained efforts to address systemic barriers. Challenges such as inequitable representation, unconscious bias, and limited access to flexible working arrangements and promotion continue to disproportionately affect underrepresented groups, creating persistent inequalities in recruitment, retention, and career progression. 

By implementing transparent career frameworks, embedding DEI metrics into organisational performance and expanding flexible working options, the industry can build a more inclusive and supportive environment. Strengthening accountability through robust governance structures and exploring opportunities such as a kitemark system or mandatory reporting can further accelerate progress. In addition, addressing intersectional barriers—particularly those tied to socio-economic mobility—offers a pathway to amplify DEI efforts and create broader opportunities for underrepresented groups. 

Policymakers also play a crucial role in fostering systemic change by introducing legislative measures that enhance workplace equity, including provisions for flexible working, social mobility initiatives, and protections for marginalised communities. Industry-wide collaboration, supported by visible access routes and data-driven strategies, is essential to achieving a more equitable, innovative, and resilient tech sector. 

While progress has been slow, a more unified and strategic approach can dismantle entrenched barriers, ensuring that the UK tech industry reflects the diversity of the society it serves and thrives in an increasingly competitive global landscape. By fostering an environment where diverse talent can thrive, the sector can unlock its full potential to drive technological advancement and social progress.

Entrepreneurship: executive summary

The United Kingdom has established itself as a global leader in the startup ecosystem, valued at over $1.1 trillion and ranking as the third most valuable globally. Home to more than 150 unicorns and 25,000+ funded startups, the UK benefits from world-class education hubs, a robust job market, and a favourable regulatory environment^{[footnote 12]}. This vibrant ecosystem presents significant opportunities for entrepreneurship.

Entrepreneurship in the UK sector not only offers a prosperous outlook but provides a vital alternative to traditional employment models, enabling individuals from marginalised groups to overcome systemic workplace barriers and unlock the potential of innovation.

However, significant challenges temper these opportunities. Entrenched biases in investment decisions, including “pattern-matching” processes and stereotypical expectations, disproportionately disadvantage minority entrepreneurs. For instance, 92% of angel investments in 2022 were allocated to all-white teams, reflecting a stark inequity^{[footnote 13]}. Similarly, women-led startups secured just 2% of annual venture capital (VC) funding^{[footnote 14]}, a figure that shows no improvement in the first half of 2024, according to Debbie Wosskow, Co-Chair of the Invest in Women Taskforce^{[footnote 15]}

The Organisation for Economic Cooperation and Development highlights the immense potential of inclusive entrepreneurship, global efforts to promote diversity often fall short, overlooking its transformative impact^{[footnote 16]}. Access to essential resources, including funding, networks, and mentorship, remains a significant obstacle for diverse founders. These barriers are often exacerbated by a lack of representation within the investment sector itself. Despite some improvements—such as a 100% growth in ethnic representation among UK venture capitalists since 2019^{[footnote 17]} - the low starting point means even with this growth, substantial gaps persist in gender and ethnic diversity within investor networks, limiting the accessibility and inclusivity of capital. This disparity is further intensified by the elitist nature of venture capital, where 71% of partners in VC funds are privately educated^{[footnote 18]}, highlighting systemic barriers that disproportionately exclude underrepresented groups.

Challenges extend beyond gender and ethnicity to include intersectional and regional disparities for founders. Black, neurodivergent, and disabled founders face unique obstacles, such as limited access to tailored resources and industry knowledge. This is exacerbated by the lack of specific data about founders from these communities being available.  Regional inequalities exacerbate these barriers, with investment disproportionately concentrated in metropolitan hubs, leaving ventures in other areas underserved.

Simply put, founders from underrepresented groups currently have too little capital and access to viable growth environments. Progress in this regard is slow, which impacts the overall economic opportunities for growth. The majority of the focus on inclusion in the space has focused on female founders, with little specific action for other demographics.

Despite these systemic barriers, green shoots of progress are emerging. The Invest in Women Taskforce recently raised over £250 million, to be invested through female-led investing teams to support female entrepreneurs across the UK. Backed by major institutions such as Barclays, M&G, and the British Business Bank, this funding aims to address historical investment gaps and support women-led businesses through initiatives like the “Women Backing Women” fund.  Programmes are realising that as well as funding, tailored (rather than just targeted) wider business support are essential for these entrepreneurs to thrive.

Further, gender-based initiatives such as the Investing in Women Code, a collective of funders who pledge to improve and report on their gender-based funding approach, and government-backed grants like the Help to Grow fund are beginning to expand access to capital for female founders. Extending the effort garnered by female-founded start-ups to a wider field of diversity, especially ethnic minorities, disabled, neurodivergent, and founders from lower socio-economic backgrounds, will ensure that the UK economy does not miss innovation and growth.

Policymakers also have a vital role in driving DEI via targeted interventions. This includes funds,  requiring reporting to enhance accountability and inclusivity with the VC industry, adoption of diversity-focused codes such as the Investing in Women Code, and measures to ensure diverse representation on boards, among limited partners (LPs), and senior leadership.  

These efforts have the potential to create a foundation for broader opportunities and innovation, driving progress for underrepresented founders and thus the overall UK economy.

Entrepreneurship: conclusion  

Underrepresented entrepreneurs in the UK face systemic barriers to accessing tailored business support, which remains a critical determinant of success. While diversity-focused interventions have been introduced, many initiatives adopt a generalised approach that fails to consider the unique challenges faced by specific communities. Without tailored and targeted programme design and robust evaluation frameworks, such initiatives risk delivering limited and uneven impact.  

The ongoing challenge lies in the scale of this work and its fragmented progress. While pockets of effective support are being offered, they are mainly focused on female representation. The various programmes are not connected or with a wide enough lens. Without a coordinated approach and sufficient investment, there are isolated pockets of effective practices and valuable insights that lack significant overall progress.  

The investment sector and wider funding ecosystem need to be more diverse, representative and inclusive.  Policymakers can assist with this through mandated actions to enhance accountability and inclusivity within the VC industry. Key proposals include the establishment of targeted funds and the adoption of diversity-focused codes and measures to ensure diverse representation on boards, among limited partners (LPs), and senior leadership. 

Establishing clearer accountability is critical to ensure best practices in angel support, accelerators and other initiatives are consistently implemented. Furthermore, creating a more optimistic narrative grounded in focused efforts could energise local and regional initiatives, motivating potential founders to take the next step. To drive meaningful change, the most urgent need is to substantially increase the amount of funding and wider business support awarded to underrepresented founders and ensure that, in doing so, a more complex environment is not created around them, preventing the successful growth of their organisations.

Skills: executive summary

Inclusive skills development efforts by the tech industry and policymakers have made modest progress in engaging underrepresented communities in technology pathways. However, significant barriers persist in ensuring equitable access to digital skills and career opportunities for these groups. 

Women, ethnic minorities, and individuals from lower socio-economic backgrounds continue to face systemic challenges, including unequal access to formal training pathways and limited progression opportunities. Additionally, the persistent lack of accessible and tailored learning pathways for disabled and neurodivergent individuals highlights a critical gap in current initiatives. These barriers not only hinder the participation and advancement of underrepresented groups in the digital economy but also exacerbate broader inequalities within the sector, potentially stifling innovation.

This disparity is set against the broader backdrop of the UK’s pressing digital skills shortage, with 93% of businesses reporting a significant gap in IT skills within the job market. Rapid technological advancements, such as those in artificial intelligence, data analytics, and cloud computing, are outpacing current training and education frameworks, with 42% of businesses attributing the skills gap to this accelerated evolution. The government estimates that the digital skills deficit costs the UK economy £63 billion annually, underscoring the urgent need for inclusive and effective solutions to bridge this critical gap.^{[footnote 19]}

This is now becoming even more urgent, particularly for minorities. With the half-life of some technical skills indicated by tech leaders being as little as 6 months^{[footnote 20]} and AI-enabled technologies set to be more likely to impact roles held by women^{[footnote 21]}, technology leaders that do not make upskilling initiatives a strategic priority may find they lock even more women out of the sector if attention is not focused on creating methods for regular skills development. There is also the economic risk that without being able to staff the growing technical needs in the UK economy, companies may look to offshore more advanced digital roles, impacting the entire tech workforce.

Women and ethnic minorities, despite often possessing higher qualifications than their white male counterparts, remain overrepresented in lower-paid, junior roles and underrepresented in emerging fields such as cybersecurity and AI. Mid-career women frequently report stagnation, as limited opportunities to transition into high-demand roles further entrench existing inequalities.

Emerging solutions highlight potential pathways for fostering a more inclusive digital skills ecosystem. Skills Bootcamps, which attract a promising 44%^{[footnote 22]} female participation rate, and conversion courses in AI and data science offer accessible entry points for diverse groups. However, these non-traditional pathways often lack the industry recognition of conventional qualifications, limiting participants’ career progression. Local Skills Improvement Plans, along with reforms to the apprenticeship levy and the establishment of Skills England, demonstrate promising frameworks for addressing accessibility challenges and supporting diverse talent pipelines.

To maximise impact, lifelong learning networks offering modular, competency-based programs tailored to industry needs could provide smoother career transitions for individuals from diverse backgrounds. Standardised competency frameworks such as SFIA (Skills Framework for the Information Age) or DDAT (Digital Data Analytics Taxonomy) could establish a shared language for measuring and defining technical skills, enhancing program reliability and alignment with industry needs whilst creating the viability for those outside the sector to see how they access and develop. For SMEs, which often lack resources for structured long-term skills planning, government-backed standards tied to funding provisions could be transformative.

Addressing data gaps—particularly around social mobility, LGBTQI+ representation, and neurodivergence—is essential for designing targeted interventions. Stakeholders must move beyond viewing skills as inventory challenges to focus on capabilities essential for sustained growth. A coordinated, strategic approach to digital skills planning, combined with greater visibility, mentorship networks, and financial support, could foster a transparent, competency-driven ecosystem that aligns skill development with individual aspirations and industry needs. Alongside these efforts, raising awareness of educational inequality will help dismantle barriers to accessible pathways at both entry-level and mid-career stages, paving the way for a more inclusive and innovative tech industry.

Skills: conclusion  

The journey towards a truly diverse and inclusive UK tech sector has seen encouraging strides, yet critical barriers persist, and progress is not equal across different underrepresented groups.  This unequal progress is further threatened by economic downturns, shifting market dynamics and resource constraints. The UK tech sector is at a significant crossroads, with diversity and inclusion increasingly acknowledged as essential contributors to innovation and competitiveness. Sustained efforts in this space are crucial to retaining a diverse talent pool, fostering innovation, and supporting economic growth. Without continued commitment, there is a risk that underrepresented groups may disengage from the sector, potentially leading to a contraction of the talent pipeline, reduced innovation, and broader economic challenges. Concerted and coordinated effort, commitment and resourcing can accelerate progress, innovation and economic growth.

As highlighted at the outset, addressing these challenges requires a collaborative approach; neither the Government nor industry can tackle them in isolation. A coordinated effort that leverages the strengths of policymakers, educators, employers, and community organisations is essential to drive meaningful and sustainable change.  However, if the Government uses its available levers of policy initiatives and legislation, funds springboard initiatives and uses its convening power, it will serve as a powerful catalyst to increase DEI progress. Then if industry utilises these to drive both internal and cross-sectoral change, embedding DEI in its core business opportunities, removing barriers to employment and advancement and seeing inclusive skills development as a core business investment (not cost), the UK will see genuine progress, not just in the diversity of its workforce, but its skills pipeline, innovation and economy.

Policies, initiatives, and programmes must be data-driven and impact-focused, aiming not only to support underrepresented groups but also to fundamentally transform existing approaches, processes, and organisational culture. The focus must shift from siloed diversity efforts to fostering inclusion, equity, and intersectionality across all levels. This is not simply about hiring for diversity or expecting underrepresented individuals to adapt to existing systems; it is about organisations evolving to embed inclusivity into their core business processes. Such an approach ensures not only diverse hiring but also equitable retention, development, and promotion, fostering a truly inclusive workforce.

Enduring challenges in recruitment practices, limited access to training pathways, and socio-economic hurdles continue to disproportionately affect women, ethnic minorities, LGBTQI+ individuals, disabled people, neurodivergent talent, and those from lower-income backgrounds. Biassed cultures and unfair treatment including stereotyping, microaggressions, sexual and racial harassment and hostility, result in stalled careers and growing attrition rates. Entrenched bias in hiring and promotion within the industry, investment and funding decisions in entrepreneurship, and lack of structural aid for businesses to build skills improvement plans for their teams are significant barriers to inclusivity in the tech sector. these issues highlight the need for innovative, data-driven, targeted and scalable interventions to bridge persistent gaps. 

Mentorship programs, structured career pathways, psychological safety measures, and workplace flexibility represent critical interventions aimed at addressing the challenges experienced by marginalised groups in the tech sector. Similarly, initiatives such as targeted funding, tailored support for underrepresented founders, and specialised training through Skills Bootcamps and AI conversion courses have demonstrated potential in widening access and enabling diverse candidates to build sustainable career foundations. While evidence suggests a clear understanding of effective strategies, the limited scope, fragmented implementation, and lack of sustainability of current efforts underscore the need for a more unified approach.

To advance inclusion within the tech industry, several strategic opportunities emerge. Standardising competency frameworks could help reduce barriers to entry and progression, providing a transparent structure for career development. Enhanced data collection and benchmarking are essential to deepen insights into the lived experiences of underrepresented groups, enabling evidence-based decision-making. Furthermore, investing in modular, lifelong learning frameworks—quality-assured and aligned with industry demands—has the potential to significantly expand access to high-demand areas such as AI and cybersecurity. 

Encouragingly, there is a growing industry appetite for accreditation schemes to track and validate progress in inclusion efforts. This signals a promising commitment to systemic change. However, to realise meaningful and sustainable outcomes, it is imperative that future initiatives are comprehensive, scalable, and aligned with both industry and policy priorities. A cohesive strategy integrating these elements will be instrumental in fostering a more inclusive and innovative tech sector. 

The report aims to enhance the Department’s understanding of the industry’s inclusion needs, providing valuable insights to inform strategies for fostering a more equitable and diverse tech sector.

1. GOV.UK Economic Estimates: Employment in the Digital Sector, April 2023 to March 2024   ↩

2. UK Finance  Use of non-inclusive language in technology and cybersecurity and why it matters and Kapor Centre Tech Leavers Study   ↩

3. Fawcett Society System update: addressing the gender gap in tech   ↩

4. Uptime Institute reports    ↩

5. British Computing Society BCS diversity report 2024: Addressing the under-representation of women in technology    ↩

6. Tech Talent Charter Attrition in Tech report ↩

7. British Computing Society BCS diversity report 2024: Ethnicity    ↩

8. Tech Talent Charter Diversity in Tech Report 2024 ↩

9. British Computing Society BCS Diversity report 2024: Age ↩

10. Tech Talent Charter Diversity in Tech Report 2024 ↩

11. British Computing Society BCS Diversity report 2024: Age ↩

12. HSBC dealroom United Kingdom, Dealroom.co ↩

13. British Business Bank Investing in Ethnic Minority Entrepreneurs ↩

14. The Independent LGBT+ workers paid £6,700 per year less than straight workers, survey suggests ↩

15. Forbes £250 Million Boost For Female Founders Backed By U.K. Chancellor ↩

16. Organisation for Economic Cooperation and Development (OECD) Breaking down barriers to business: How can we nurture inclusive entrepreneurship? ↩

17. Diversity VC The Equity Record, Diversity VC ↩

18. Diversity VC The Equity Record, Diversity VC ↩

19. UK Department for Digital, Culture, Media and Sport UK Digital Strategy 2022; referenced from Action needed on digital skills crisis ↩

20. techUK Fast Forward for Digital Jobs ↩

21. Harvard Business Review, Reskilling in the age of AI ↩

22. Department for Education: Evaluation of Skills Bootcamps Wave 2 Implementation Report updated September 2024 ↩