Major City firms still allow their transgender staff to use women toilets if they self-identify as female - a year on from a Supreme Court that ruled against the practice.
An investigation found that top finance companies are not complying with the new rules after the landmark ruling in April last year, which determined that 'sex' under the Equality Act meant biology, not self-identification or paperwork.
The findings by Sex Matters, a gender-critical charity, revealed that businesses including the Co-operative Bank, Coventry Building Society, Natwest and Admiral insurance are still allowing their staff to use toilet facilities based on their self-identified gender, not their biological sex.
A landmark Supreme Court ruling on April 16, 2025, determined that 'man' and 'woman' refer to biological sex under the UK's main anti-discrimination law, the Equality Act of 2010.
The decision meant employers had to make sure that single-sex spaces were being used by people of the corresponding biological sex.
But 15 banks, insurers, consultancy firms and building societies approached by Sex Matters would not confirm that access to single-sex facilities was being restricted to people of one biological sex.
The firms responded that they were waiting on the Equality and Human Rights Commission (EHRC) to publish its 'revised code of practice' before changing their existing policies. Other firms claimed the ruling was not directly relevant to employers.
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.
For Women Scotland directors Susan Smith (left) and Marion Calder (right) celebrate the landmark ruling on April 16, 2025. Since then, however, some companies have not ensured the new rules are being implemented
The ruling determined that 'man' and 'woman' refer to biological sex under the UK's main anti-discrimination law, the Equality Act of 2010
Ms Phillipson delayed the new EHRC guidance last month on the creation of women-only spaces in the workplace, stating that it could interfere with local elections.
The minister also said in February that the anticipated EHRC guidance 'does not apply to workplace regulations', which could mean that companies continue to allow biological men to use female toilets, and vice-versa.
Sex Matters' report also found that the main reasons given by employees for adopting self-identification as opposed to the Supreme Court ruling's definition of biological sex was due to 'pressure from internal staff LGBT+ networks'.
They also claimed there was pressure on senior staff from external lobby groups such as Stonewall, an LGBT rights charity in the UK.
Employees also stated they were 'angry, frustrated, and cynical' about their employers' attitude towards the new law.
The report stated that staff felt the protection of women was treated 'unseriously' and were reluctant to complain for fear of 'personal reprisals'.
Sex Matters said in their report: 'The government needs to show leadership by fixing non-compliant policies in the public sector.
'The Financial Conduct Authority (which regulates the City) and the Health and Safety Executive (which provides guidance on workplace regulations ) need to state clearly what is required for employers to comply.
'And finally, senior leaders in City firms need to understand that legal compliance in this area is no more optional than in any other – and that if they continue to fail to act, they risk cynicism and disengagement from large numbers of their female employees.'
In other sectors, the ruling has not been adhered to. In the NHS, for example, transgender patients and staff can access single-sex spaces in hospital in England.
The Daily Mail contacted Co-operative Bank, Coventry Building Society, Natwest and Admiral insurance for comment.