Women and the Cost of Living Debate

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Department: HM Treasury

Women and the Cost of Living

Gloria De Piero Excerpts
Tuesday 19th November 2013

(10 years, 5 months ago)

Commons Chamber
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Gloria De Piero Portrait Gloria De Piero (Ashfield) (Lab)
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I beg to move,

That this House believes that the Government is failing to deliver a recovery for women and is making women pay three times more than men to bring down the deficit, according to research by the House of Commons Library; notes that under this Government, women’s unemployment has reached its highest levels for a generation; further notes that wages are stagnating in jobs where women are predominant; and calls on the Government to support more women into decent work by extending free nursery places for 3 and 4 year olds from 15 to 25 hours a week for parents at work, provide a legal guarantee for 8am-6pm breakfast and afterschool club childcare, and bring in Make Work Pay contracts to provide a 12 months tax rebate for firms which sign up to pay the living wage.

The test of a successful economy is whether it improves the living standards of ordinary people: families and businesses who want to work hard and to get on. Today, official figures say that working people are on average £1,600 per year worse off than they were at the election. On this Government’s watch, we have seen the biggest fall in workers’ incomes in any G7 country. Families across the country are hurting and it is women who are on the front line of this cost of living crisis. More often than not, it is women who are left trying to make the family budget stretch that little bit further: when the weekly shop costs more each month, but the amount in the purse stays the same; when in the past three years the cost of keeping the kids in nursery has risen five times faster than wages; and when heating bills are 10% more expensive than they were last year. Women understand what it means for prices to rise faster than wages for 40 out of the past 41 months.

Thérèse Coffey Portrait Dr Thérèse Coffey (Suffolk Coastal) (Con)
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Does the hon. Lady welcome the fact that there are more women in work than ever before?

Gloria De Piero Portrait Gloria De Piero
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There have never been more women saying that they are working part time and cannot get the hours to work full time. The female employment rate is lower than it was under Labour before the crash.

Jim Cunningham Portrait Mr Jim Cunningham (Coventry South) (Lab)
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Does my hon. Friend agree that there are more women than ever before on low wages, more women than ever before who cannot get jobs, and more women than ever before who have to deal with the high cost of living?

Gloria De Piero Portrait Gloria De Piero
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My hon. Friend is absolutely right. I will discuss some of the measures that a Labour Government would introduce.

Luciana Berger Portrait Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
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My hon. Friend refers to the challenges that women face when budgeting. Does she share my concern that the comments made by the Education Secretary just a few weeks ago—that people who had to go to a food bank were not managing their finances—were an affront to many women?

Gloria De Piero Portrait Gloria De Piero
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Those comments were absolutely offensive. I thank my hon. Friend for highlighting them, and for asking the question that exposed the reality of the Government’s position.

Women feel it when their Sure Start centres are cut and the cost of child care continues to rise. They understand that the Government are not doing enough to help them, and they could teach David Cameron a thing or two about tough decisions. The other week I met a different Chipping Norton set: Lisa, Amanda, Toni and Laetitia. Lisa told me that, as a new mum caring for a young child and a husband with cancer, the children’s centre in the Prime Minister’s constituency saved her from having a breakdown. That Sure Start centre is now threatened with closure. Sheila, in my constituency, is in her 80s. She is a widow living alone in Sutton-in-Ashfield, and is worried about how she is going to keep warm this winter. To do so, she has to spend the day at her son’s house. Half of mums surveyed by Netmums said that to save money they turn off the heating when their children are out. This is their Britain.

Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
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The hon. Lady is making a compelling case about how the Government’s misguided austerity programme is leading to social devastation and is economically illiterate. Does she agree that cutting public services hits women with a triple whammy—as the group most dependent on public services, as employees of public service and as the ones who have to fill the gap when public services go?

Gloria De Piero Portrait Gloria De Piero
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It is absolutely right that women are hit three times as hard, and I will explain later how that has happened.

Half of mums surveyed by Netmums said that to save money they turned off the heating when their children were out. The Government talk about recovery, but these women know it is definitely not a recovery for women. Under this Government, unemployment among women has reached its highest levels in a generation, long-term female unemployment has increased eight times as fast as for men, the number of older women unemployed has increased by more than a third, and black and minority ethnic women are twice as likely to be unemployed as the national average.

Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
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Does my hon. Friend agree that the 242% increase in unemployment among women over 25 in Oldham over the past couple of years is a real indictment of the Government and their policies?

Gloria De Piero Portrait Gloria De Piero
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That is absolutely right. That is why it is important to tackle long-term unemployment, and that is exactly what a Labour Government would do.

When women do manage to find work, more often than not it is part time, low-wage or temporary. The number of women working in temporary jobs increased twice as fast as the number of men. Three times more young women are in low-wage jobs than 20 years ago, and the number of women in part-time work is at its highest level ever.

Seema Malhotra Portrait Seema Malhotra (Feltham and Heston) (Lab/Co-op)
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My hon. Friend is making a powerful speech. Does she agree that for women working in jobs not equal to their capabilities and not getting the hours and experience they need and deserve, it will have a longer-term impact on their prospects in the workplace and their income over their lifetime?

--- Later in debate ---
Gloria De Piero Portrait Gloria De Piero
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I absolutely agree. My hon. Friend makes a powerful point. I vividly remember one lady—a mum in her 40s—coming into my office just before a Morrisons opened in my constituency. She was in tears because when Morrisons announced it was recruiting, she kept calling but the number was constantly engaged.

The Fawcett Society has done some important work warning that women are in danger of losing their precarious footing in the work force.

Madeleine Moon Portrait Mrs Madeleine Moon (Bridgend) (Lab)
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My hon. Friend has already mentioned the problems for women over 50. Does she appreciate that for all women, but especially those over 50, unemployment has a huge impact on their capacity to retire and save for retirement? We are not just saying to women, “You’re not going to earn now”; we are blighting their lives with poverty into old age and with the need to apply for benefits in old age. If they were working now, they could save for their old age.

Gloria De Piero Portrait Gloria De Piero
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My hon. Friend makes a fantastic point.

What is the Government’s response? It is to hit women harder. Of the £14.4 billion George Osborne has raised through direct taxation and benefit changes, about £11.4 billion—79%—is coming from women. David Cameron is asking women to pay more than three times as much as men to bring down the deficit, despite the fact that women still earn and own less than men. Scratch the surface, and we see that some of the most vulnerable women are being hit.

Lisa Nandy Portrait Lisa Nandy (Wigan) (Lab)
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Will my hon. Friend give way?

Eleanor Laing Portrait Madam Deputy Speaker (Mrs Eleanor Laing)
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Order. Before the hon. Member for Ashfield (Gloria De Piero) progresses, I gently remind her that one does not refer to Members of the House by their names. The Prime Minister is “the Prime Minister” and the Chancellor of the Exchequer is “the Chancellor of the Exchequer”.

Gloria De Piero Portrait Gloria De Piero
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I give way to my hon. Friend.

Lisa Nandy Portrait Lisa Nandy
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Will my hon. Friend also highlight the impact of the cuts on the voluntary sector and therefore on women who use those services? The charity Women’s Aid said yesterday that domestic violence refuges had had to turn away 180 women a day, many of whom were going back to violent relationships. The impact on those women and their children will surely be immense.

Gloria De Piero Portrait Gloria De Piero
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That is an extremely powerful point. If as much has been cut from local government finance as this Government have cut, it shows the reality of what we see. If we scratch the surface, we see that some of the most vulnerable women have been the hardest hit. Low-paid new mums lost nearly £3,000-worth of support during pregnancy and in their baby’s first year. Couples with children lost 9.7% of their disposable income and single mothers lost the most—15.6%. The Prime Minister just does not get it. Why would he, when only four out of the 22 in his Cabinet are women? When it comes to women, it is out of sight and out of mind from this out-of-touch Prime Minister.

Andrea Leadsom Portrait Andrea Leadsom (South Northamptonshire) (Con)
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Is the hon. Lady as delighted as I am that this Government have introduced shared parental leave and time off for dads to support their wives? Does she agree with me that what this Government are doing to support the early years is absolutely commendable and that all parties should get behind it?

Gloria De Piero Portrait Gloria De Piero
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We in government extended maternity leave and introduced paternity leave.

The Government are turning back the clock on women’s equality. Progress on the wage gap has stalled, and women’s financial independence is being undermined. Let us look at the Government’s proposal for a married couple’s tax allowance. It is less than £4 and it will not benefit most married couples. For five out of six couples, it will represent a transfer from the purse to the wallet. It is money to the married man on his third wife, while the single mum, left behind to bring up the kids, will not get anything at all. This Government are taking a lot away from the purse to put a little bit back in the wallet.

This matters not simply for women’s lives and women’s equality, given that increasing women’s employment helped the last Labour Government to lift more than a million children out of poverty. All this progress is now at risk, and progress on child poverty has stalled. I look at my own constituency and see that use of food banks has gone through the roof.

Andrea Leadsom Portrait Andrea Leadsom
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Will the hon. Lady give way?

Gloria De Piero Portrait Gloria De Piero
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I would like to make some progress, if I may.

One food bank, provided by the Eastwood volunteer bureau, is reporting a 400% increase in use, but it is not only former coalmining areas such as mine that are struggling; this is happening up and down the country. Only yesterday, in reading the Witney Gazette, I learned that another food bank was opening in the town of Carterton, just a few miles from where the Prime Minister lives. The Tory mayor of Carterton recognised the problem straight away—utility bills had gone up and the cost of food had continued to rise.

Madeleine Moon Portrait Mrs Moon
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I apologise for interrupting my hon. Friend’s powerful speech again. On Friday evening, a lady who works in a food bank in my constituency told me that people were turning down rice and pasta on the grounds that they could not afford the amount of fuel needed to cook it. Are we not in a dreadful position when people are turning away food that they cannot even afford to cook?

Gloria De Piero Portrait Gloria De Piero
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That provides extraordinary evidence of why freezing energy bills is so important.

Netmums found that one in five mums are regularly missing meals so that their kids can eat. One mum said:

“If it’s a choice between me or the kids eating, I will feed them. I have lost so much weight my clothes don’t fit but I can’t afford to buy any more.”

This is Tory Britain.

Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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The hon. Lady is making a powerful speech, and we should all be concerned about the issues she raises, but will she reflect on the fact that it was the last Labour Government who piled the green levies on our energy bills, which are now hitting women harder than men?

--- Later in debate ---
Gloria De Piero Portrait Gloria De Piero
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Energy bills have gone up and continue to go up dramatically—not because of green levies, but because of over-charging by the energy companies. That is why we will get tough on those energy companies, introduce a regulator with teeth and freeze energy bills until we sort the market out for good.

The cost of child care has risen by 30% since the election —five times faster than pay. A mum working part time on an average wage has to work from Monday to Thursday before she has paid off the weekly child care bill.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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Does not the impact on women come from the cost of having to look after not only young children, but their elderly parents? Is my hon. Friend aware of the Scottish Widows survey showing that, as a result, nearly 40% of women are not making provision for their retirement?

Gloria De Piero Portrait Gloria De Piero
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I thank my hon. Friend for drawing attention to that survey. I shall make sure that I look into its findings.

Many families must decide not when mum will go back to work after maternity leave, but whether it makes financial sense for her to do so at all. According to a survey by Asda, 70% of stay-at-home mums said that in the current climate they would be worse off if they worked, because of the cost of child care. The Government’s response has been to take £7 billion away from families with children, and to remove the ring fence from Sure Start, breakfast clubs and after-school clubs.

The day before the election, the Prime Minister looked down the barrel of a camera and told women throughout the country that he backed Sure Start. Let me repeat his words in full.

“Yes, we back Sure Start. It’s a disgrace that Gordon Brown has been trying to frighten people about this. He’s the Prime Minister of this country but he’s been scaring people about something that really matters.”

What about the Deputy Prime Minister? What did he say on the day before the election?

“Sure Start is one of the best things the last government has done and I want all these centres to stay open.”

Andrea Leadsom Portrait Andrea Leadsom
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Will the hon. Lady give way?

Gloria De Piero Portrait Gloria De Piero
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The hon. Lady has already intervened, and I want to allow others to speak.

Since the election there are 578 fewer Sure Start centres and 35,000 fewer child care places, and the number of breakfast and after-school clubs has been cut in more than a third of local authority areas. As for the women who have found work, it is the sort of work that leaves many families struggling to pay the bills. A record number of women are in part-time, temporary and low-wage jobs. One in four earns less than the living wage, as opposed to one in six men. The Government are wasting women’s talent, and costing the economy too. Where is their commitment to make work pay? On our first day in office, the next Labour Government will offer employers throughout Britain a “make work pay” contract to help them to pay the living wage.

Alison McGovern Portrait Alison McGovern (Wirral South) (Lab)
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Does my hon. Friend share my concern about the number of women in the care sector who are on zero-hours contracts? The Government have told me that it is 300,000. Is my hon. Friend concerned about all those women with insecure levels of income?

Gloria De Piero Portrait Gloria De Piero
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Absolutely. That is why we have pledged to tackle the abuse of zero-hours contracts. Flouting of the minimum wage is also a particular problem in the care sector.

Emily Thornberry Portrait Emily Thornberry (Islington South and Finsbury) (Lab)
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My hon. Friend is making a powerful speech, and I congratulate her on it.

A high proportion of children who live in poverty in my constituency have unemployed parents, and a high proportion have only one parent. The cheapest full-time nursery place costs more than £160 a week; it takes the vast majority of a weekly minimum wage to pay for that alone, before paying rent. This is the Britain that the Government have given us.

Gloria De Piero Portrait Gloria De Piero
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I have nothing to add to what my hon. Friend has said. She has put it perfectly.

The next Labour Government will offer a simple deal to employers: 32p off tax on every pound that they spend on paying workers the living wage during our first year in office. Tackling the cost-of-living crisis means taking action to increase wages and keep the benefit bill down.

George Hollingbery Portrait George Hollingbery (Meon Valley) (Con)
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Will the hon. Lady give way?

Gloria De Piero Portrait Gloria De Piero
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I am nearing the end of my speech, so I will continue.

Something is broken when women are being forced to take two or three jobs in order to afford the basics for their families, and are being forced to take out payday loans just to make ends meet until the end of the month. We know that payday lenders target young women with their advertisements, and that the number of women declared insolvent is expected to overtake the number of men in that position for the first time. We need tough action to end the misery of so many women who are facing insurmountable debt. The next Labour Government will cap the total cost of credit. We will place a levy on the profits of payday lenders to double the public money available for low-cost alternatives for families, such as credit unions, and we will ban them from targeting kids with their advertisements.

All that we get from this Tory-led Government is complacency, and sometimes contempt, as I discovered this morning when I read in the newspapers that 42 Conservative Members of Parliament are members of the Free Enterprise Group, which advocates VAT on children’s clothes and on food. Was this some fringe group, I wondered? No. A Treasury Minister is a member, as is the child care Minister, the hon. Member for South West Norfolk (Elizabeth Truss). This is a group that recommends putting VAT on children’s clothes and shoes, baby food, car seats and prescriptions, raising the weekly shop by over £8.

We need a Government who will take on the vested interests, who will stand up to the big six energy companies, reforming the market and freezing prices until 2017; a Government who are prepared to take on the payday lenders, and who will cut taxes for 24 million working people with a lower 10p starting rate of tax; a Government who will cut business rates for small firms; a Government who will provide 25 hours of free child care for working parents of three and four-year-olds and a legal guarantee for every primary school in the country to provide breakfast clubs and after-school clubs, and introduce a compulsory jobs guarantee to bring down the number of women in long-term unemployment: a one nation Britain that values women’s talents, that supports mums back to work, that tackles the pay gap—a Britain where women play their full part. That is Labour’s Britain.