Baroness Featherstone
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Public Expenditure Reductions (Women)
Baroness Featherstone Excerpts(13 years, 8 months ago)
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The Minister for Equalities (Lynne Featherstone)
I very much welcome the opportunity to speak on this subject, and to clear up once and for all some of the myths surrounding the Budget and its impact on women.
I shall refer first to some of the points that the hon. Member for Hackney North and Stoke Newington (Ms Abbott) made, before putting the Government’s case per se. The Library findings were biased in their Budget analysis. The analysis was not robust; it included only selective measures.
Mr Speaker
Impugning integrity is neither desirable nor orderly. Perhaps I did not hear as clearly as the hon. Lady heard, but I shall listen intently. To my knowledge, nothing disorderly has occurred, but the hon. Lady is a long-standing—I will not say old, because she is not old—campaigner, and she has put her view forcefully on the record.
Lynne Featherstone
Thank you, Mr Speaker. No integrity was being impugned, but the Library itself notes that its research paper is not a detailed assessment based on individual tax and benefit data and, therefore, remains a rough and ready approximation.
Fiona Mactaggart (Slough) (Lab)
Has the hon. Lady commissioned the kind of detailed assessment, based on tax and benefit information, that she is uniquely placed to do? If she has, will she tell the House what it concluded about the emergency Budget?
Lynne Featherstone
I shall certainly come to that in the course of my speech.
Any analysis of tax and welfare changes by gender must make assumptions about how resources are shared within the household, and the Library’s research makes an extreme assumption that no income is shared. It is not robust, and it is based on outdated assumptions about family structures. On the issue of cuts to welfare hitting the poorest hardest, the Government have been clear that the burden of deficit reduction will have to be shared. The reforms that the Government are undertaking do protect the most vulnerable, including children and pensioners, and I shall go into detail about that in a moment.
John Hemming (Birmingham, Yardley) (LD)
There is some confusion about whether the Budget is regressive or progressive. Does the Minister accept that if analysis is done by the size of household budget—expenditure deciles—the Budget is progressive?
Lynne Featherstone
I thank my hon. Friend for that helpful intervention. Obviously, the Government case is that the Budget is progressive. We are increasing child tax credits for the poorest families, protecting them against poverty.
Toby Perkins
If the hon. Lady believes that the Library was biased, does she think that the IFS was also biased when it said that the Budget was clearly regressive?
Lynne Featherstone
I think that the Institute for Fiscal Studies was inaccurate in what it said. The Government have made it clear that the burden of deficit will have to be shared. At the Budget, the Government took unprecedented steps in publishing details. The Treasury welcomes the innovative approach of the IFS in its revised analysis of the Budget and is open to exploring new ways of assessing the potential impact of Budget measures. However, the IFS states that in order to include previously unmodelled reforms the report makes some strong assumptions that add uncertainty to the analysis.
Kate Green (Stretford and Urmston) (Lab)
Can the Minister tell us which assumptions the IFS has made that are considered unreliable or not valid?
Lynne Featherstone
I will come to that point later if I can.
I wanted to address the point that the hon. Member for Hackney North and Stoke Newington made about the public sector. Although there are a majority of women in the public sector, the Government have made efforts to support the most vulnerable public sector workers—those earning less than £21,000 a year, who will be exempt from the freeze. That will affect about 1.7 million public sector workers whose salary falls below the threshold—mostly women—who will see a flat pay rise of £250 in both years of the freeze. The Government are aware of the statutory obligations when assessing options for spending reductions.
I shall move on to a more general response to the hon. Lady. Fairness is a key theme, along with freedom and responsibility, and underpins our new Government programme. We see it as even more important during difficult times than in good times, not just because we believe it is the fundamental right of every individual to have the opportunity to fulfil their potential, but because we realise that fairness is the key ingredient to getting the country back on its feet. We cannot afford to continue wasting the talents and skills of women, of ethnic minorities and of disabled people—of all those who have been held back for no reason other than their background. Without fairness we will never achieve economic recovery, let alone full economic growth.
Yes, we have to take some tough decisions to tackle the unprecedented deficit we inherited, but as my hon. Friend the Member for Wirral West (Esther McVey) said, we should not forget that the cuts are Labour’s legacy. Labour doubled the national debt and left us with the biggest deficit in the G20. We have to clean up that situation to get the economy moving. Unless we address the deficit first and foremost, more women will be out of work and more women will suffer the consequences of the recession.
Lynne Featherstone
No, not at the moment.
Fairness is at the heart of all our decisions, so that the most in need are protected. Lord knows, the coalition Government have made extreme efforts to address the issue of protecting the vulnerable. We have spent more than £5 billion to try to equalise. That is why we are refocusing Sure Start, which the hon. Lady mentioned. We are ring-fencing its budget for this year and introducing 4,000 health visitors dedicated to helping the most disadvantaged families. That is why, as was mentioned, we are determined to make work pay by raising the tax threshold, lifting 880,000 of the lowest paid workers out of tax. The majority of them are women, who will come out of income tax each year progressively until the threshold has risen to £10,000. That will aid the lowest paid workers.
That is why we are determined to reform welfare to get people into work, creating a new Work programme to give the unemployed tailored support. It is why, as I said, we are protecting the lowest-paid public sector workers. It is why we are increasing child tax credits for the poorest families, protecting against rises in child poverty. Child poverty rose in the past few years under the Labour Government. [Interruption.] No, the whole point of tax credits for the poorest families is to protect against rises in child poverty. It is precisely why we are getting to grips with the deficit—so that we do not have to keep spending more and more on debt interest, leaving less to deliver the crucial public services that women need and depend on.
We are absolutely committed to a fairer future for women and their families, but the Government are not just about supporting women and their families through the tough times. I forgot to mention the index linking of pensions. I remind the hon. Member for Hackney North and Stoke Newington that it was the Labour Government who made the derisory 75p pension offer, and who abolished the 10p tax band. I did not hear Labour Members cause uproar about either of those measures—well, the hon. Lady may have mentioned them, but in general terms, those were Labour policies that affected the poorest and most vulnerable, and they definitely hit women hardest.
We want to give people better prospects for a brighter future. We want to create the kind of cultural change that will enable people to escape the vicious cycle of inequality and poverty, so that they can improve the quality of their life and the lives of their family. The hon. Lady should know as well as I do—our constituencies are not dissimilar—that more than 2 million children live in poor housing, in crowded rooms and in squalid conditions. One in five children lives in poverty. I see for myself in my constituency the consequences of that vicious cycle, which people could never get away from because there were no pathways out. That is totally unacceptable. She and I both know about the pressures on housing in areas such as Hackney and Haringey.
We are putting bold new measures in place that will tear down the discriminatory and cultural barriers holding people back. The Prime Minister and the Deputy Prime Minister have set up a childhood and families taskforce to tackle the barriers that prevent a successful family life and happy childhood. One of the main issues that the taskforce will consider is how we can help parents to balance their work and life. The hon. Lady raised the issue of single parents; nine out of 10 single parents who are out of work do not want to live off the state. They want a paid job. They want their independence. The problem is that there are not the flexible jobs out there that could fit with family life.
Many couples and individuals find it enormously difficult to strike the right balance between work and home. Traditional arrangements, in which mothers take the lion’s share of leave, simply do not suit everyone’s needs in the modern world. I totally refute the hon. Lady’s suggestion that the coalition Government are in any way old-fashioned. Our commitment is to moving the agenda forward. That is why we have already committed to looking at a system of shared parental leave and at extending the right to request flexible working to all. The latter, in particular, will tackle the old-fashioned notion that women ought to perform the bulk of caring—
Fiona Mactaggart
The hon. Lady promised earlier that she would tell the House her assessment of the equality impact assessment.
Lynne Featherstone
We are making it easier for families to access high-quality, affordable child care. We are extending free nursery care provision to 15 hours a week for three and four-year-olds, and continue to fund early learning and child care for more than 20,000 of the most disadvantaged two-year-olds. All those measures make a difference.
We will promote equal pay by making pay secrecy clauses unenforceable, allowing women to shed light on discriminatory pay practices. We are working to end the glass ceiling, which blights so many women’s careers, by promoting diversity on company boards. The Government will lead the way; that is why we have set ourselves the ambitious target that by the end of Parliament, at least half of all new appointees to the boards of public bodies will be women. We will tackle violence against women by introducing a coherent cross-Government strategy.
I apologise to the hon. Member for Slough (Fiona Mactaggart) for omitting to refer to equality impact assessing, which she thought important. I totally agree with Opposition Members: it is important. In fact, it is a legal requirement.