Equal Pay and the Gender Pay Gap

Fiona Mactaggart Excerpts

Wednesday 1st July 2015 Commons Chamber

[Nicky Morgan]

I thank my hon. Friend for her intervention. She might have seen an advance copy of my speech, because I am going to talk about careers advice. Perhaps I should just press-release it and then we could move on with the debate.

We are broadening the career aspirations of girls and young women by encouraging them to get into STEM-related careers through the “Your Life” campaign. As we have already discussed, we have also published new guidance for parents, “Your Daughter’s Future”, which we will continue to promote.

As hon. Members have said, support with careers is vital. That is why in December last year I announced a new careers and enterprise company, to be led by employers and independent of Government. That company will help to transform the provision of young people’s careers experiences. It will help to ensure that all young people, irrespective of gender or background, aspire to great things and know how to achieve them. I am delighted to inform the House that Claudia Harris, a former partner at McKinsey and a graduate of Harvard Business School, has been appointed chief executive. Claudia is exactly the role model schools and businesses need, with her passion for female leadership, her drive to excel and to make a difference. I should of course also mention the fabulous chairman, Christine Hodgson. As I always say, if you want something done well, ask women. That is nowhere more true than with the England women’s football team. I am sure we all wish them every success in tonight’s match.

[Fiona Mactaggart (Slough) (Lab)]

But they are paid less than the men.

--- Later in debate ---

[Nicky Morgan]

I welcome the hon. Lady to the House. I have seen that report. I do not agree with it, and think the figures are flawed, because it makes assumptions about household income and the way men and women—two people in a household—divide their income, and those assumptions are not always right.

Let me return to the motion. All of its suggestions, apart from the formal laying of the annual document before Parliament, can already be done by the EHRC without changes to legislation or instruction by Government. The motion also talks about an annual equal pay check. The critical point here is that I do not think the hon. Member for Ashfield is actually talking about an annual equal pay check; instead, she is talking about an annual gender pay check. An annual equal pay check implies an assessment of the extent to which companies are acting lawfully under the equal pay provisions of the Equality Act and that information would not be obtainable from companies’ gender pay data. I am not saying the issues are not important, but that is the reason for our queries about the motion.

Our aim is to create greater transparency on the gender pay gap. We know from Office for National Statistics data that pay gaps can vary widely by sector. Publishing the data will help companies to understand these differences.

[Fiona Mactaggart]

The Secretary of State referred to the narrowing of the pay gap for younger women, but it is still stubbornly wide for older women. Will she tell us what she is going to do for those older women who lose their jobs, get stuck in low pay and who are stuck as well looking after their families without proper support from the state?

[Nicky Morgan]

I talked about the position of older women and the Women’s Business Council. Its “Staying on” strand of work is about helping older women. She may be aware of steps such as the carers pilot that we launched in the last Parliament to help often older women who are juggling caring responsibilities—sometimes for both children and grandchildren while also looking after older relatives—to stay in the workplace, which obviously makes a difference to their pay. However, she is right to say that the gender pay gap is wider for older woman than for younger women. We are seeing the cohort effect, whereby the gender pay gap is even narrower for women who started working in the last decade. Things are changing but I take her point that there is an issue to address for older women, which is why have concentrated on it in the work of the Women’s Business Council.

Most employers recognise the need to attract and retain the best people, and developing and promoting talented women into higher paid, senior roles could help to make companies more competitive. Let me be clear: greater transparency on pay will be good for not only employers, but shareholders, investors and prospective female employees. There is an important point here, which is that we increasingly expect greater transparency from one another.

We are aware from the wide engagement we have already had with businesses that some employers have concerns about publishing gender pay information. We will consider these issues carefully in the consultation—we have established a business reference group to inform our proposals—but we believe that these concerns are largely unfounded.