Major financial institutions are defying last year’s landmark Supreme Court ruling on biological sex by continuing to allow transgender staff to use women’s toilets based on self-identification, a new investigation has found.
The findings, published by gender-critical charity Sex Matters, reveal that prominent firms including NatWest, the Co-operative Bank, Coventry Building Society and Admiral Insurance are among those still operating toilet policies based on self-identified gender rather than biological sex — more than a year after the Supreme Court determined that “man” and “woman” refer to biological sex under the Equality Act 2010.
The ruling, handed down on 16 April 2025, was widely regarded as a watershed moment in British equality law, establishing that single-sex spaces must be allocated on the basis of biology rather than gender identity or legal documentation. Employers were expected to update their workplace policies accordingly.
Yet Sex Matters found that 15 banks, insurers, consultancy firms and building societies approached during its investigation would not confirm that access to single-sex facilities was being restricted to people of the corresponding biological sex. Several firms said they were waiting for the Equality and Human Rights Commission to publish a revised code of practice before making changes. Others claimed the ruling was not directly relevant to employers — a position that legal experts have disputed.
The revised code of practice for service providers is expected to be published later this month by Bridget Phillipson, the Minister for Women and Equalities. Ms Phillipson controversially delayed the new EHRC guidance last month, stating that publishing it could interfere with local elections. She also suggested in February that the anticipated guidance “does not apply to workplace regulations,” a position that critics warn could provide cover for firms to continue non-compliant policies indefinitely.
Sex Matters’ report identified the main drivers of continued non-compliance as internal pressure from LGBT+ staff networks and external lobbying from organisations such as Stonewall. Female employees told researchers they were “angry, frustrated, and cynical” about their employers’ approach, and said the protection of women was being treated “unseriously.” Many said they were reluctant to raise concerns for fear of personal reprisals.
The problem is not confined to the financial sector. In the NHS, transgender patients and staff in England can still access single-sex spaces in hospitals, suggesting compliance with the Supreme Court ruling remains patchy across multiple industries.
Sex Matters called on the Government, the Financial Conduct Authority and the Health and Safety Executive to take a stronger lead. “Senior leaders in City firms need to understand that legal compliance in this area is no more optional than in any other,” the charity said in its report. “If they continue to fail to act, they risk cynicism and disengagement from large numbers of their female employees.”
