Women and the Economy

Jo Stevens Excerpts

Wednesday 9th December 2015 Commons Chamber

[Kate Green]

I will make some progress, if the hon. Gentleman will forgive me.

It is women who will lose out from the lack of paid-for care, as they so often have to step in to fill the gap.

Terrifyingly for women at risk of or fleeing sexual or domestic violence and abuse, there have also been substantial cuts to services and access to justice that protect women’s safety. Research for Women’s Aid in 2014 showed that a third of women were being turned away from refuges because there was no room for them. Thirty-two specialist services closed between 2010 and 2014 due to lack of funds. The Chancellor’s short-term proposal to fund domestic violence services from the unfair tampon tax makes their funding symbolically and literally the responsibility only of women. Two women a week are killed as a result of domestic violence, and that must be the responsibility of everyone in society.

Why does all this happen? Why are women hit the hardest? It happens because we are not present where decisions are taken. Our voices are not heard. The Fawcett Society has shown that 80% of stories in the media about the economy are about men or quote men. Although there has been a welcome improvement in the number of women on company boards following the Davies report, the proportion of women in executive positions on FTSE 100 boards remains lamentably low.

[Jo Stevens (Cardiff Central) (Lab)]

Will my hon. Friend give way?

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[Caroline Dinenage]

The hon. Lady fails to recognise that in the new pension changes, women who have taken time out to raise children will now not be penalised by the system. She is being a little unfair. Thanks to the Government, we are able to increase support for childcare costs, and protect key Government services.

The commitment to supporting women in work is a priority for the Government, which is why the Prime Minister pledged earlier this year to end the gender pay gap within a generation. Let me be clear: there is no place for a pay gap in today’s society. That is why we committed to requiring employers to publish information on the difference between men and women’s pay and bonuses. We will shortly be consulting on the regulations needed for gender pay reporting, and I urge all employers to consider those carefully.

[Jo Stevens]

One way that the gender gap could be closed is by addressing public procurement and requiring anyone tendering for a Government contract to have made an equal pay audit. Why not take that step?

[Caroline Dinenage]

We have had that conversation many times in recent months, and I say gently that the Labour Government had 13 years to introduce such a measure. We are not asking employers to do this on their own; we are trying to bring them with us because that is the right thing to do. We will provide extensive guidance, case studies and toolkits. By working in partnership with businesses and employees, we will see results. We will also extend those reporting requirements to the public sector. Labour had 13 years to do that, and it failed.

[Jo Stevens]

Equal pay audits are not difficult to do—I ran them in the firm that I was part of before I came to this House. Why will the Government not take steps now?

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[Caroline Dinenage]

The hon. Gentleman could not have put it better. These are the women who, as I have said, were educated under the last Labour Government. Under our education reforms, these are the women who will be aspiring to higher paid work in the future. When Labour left power, there were more than 20 all-male boards in our FTSE 100 companies. Now, there are none.

[Jo Stevens]

On that point, the women on boards are in non-executive director roles. Anyone who has sat on a board of directors knows that decisions are made by executive directors, not non-executive directors.

[Caroline Dinenage]

The women are not all in non-executive director roles. Again, we are criticising women, which is negative. The hon. Lady is right that we would like to see more women coming up through the executive pipeline. We would like to see women who have worked their way up without quotas or token gestures, which is why we are making the changes we are making.

Women are playing their part and businesses are benefiting from their immense skills. Every single woman on those boards knows she is there on merit as the best person for the job, regardless of gender, and the men know it too. We want to go further, however. We are building on this through a new target of 33% female representation on FTSE 350 boards by 2020 and a review supporting more women into executive positions so that we develop that pipeline of female talent. We have also called for an end to all-male boards in the FTSE 350.

We want to inspire women everywhere, from the classroom to the boardroom and every stage in between. We know that education is one of the most fundamental ways of driving lasting change and raising aspirations. If we are to ensure women’s economic equality, we must start with the youngest generation. This is an area where having a Secretary of State for Education who is also Minister for Women and Equalities is especially valuable. No child should ever feel that a career is off limits because of their gender, race or background. There is no place in our society for stereotypes about some jobs being suitable for girls and some for boys. In this, we have made important strides. There are now more girls than ever taking physics and maths A-level, with 12,000 more entries in maths and science in England since 2010.

The Opposition spokesman asked me about the difference between men and women entering apprenticeships in different sectors. Since 2009, the number of women starting engineering and manufacturing apprenticeships has increased threefold. This is not a new problem, of course, and I would be very keen to know, in a different conversation, what Labour did about it. The Government will go further. The science, technology, engineering and maths workforce is vital to the growth of the economy. The UK needs to recruit 83,000 engineers a year and they cannot all be blokes. That is why the Government have set up the new Careers & Enterprise Company. We have heard Members complaining about careers advice. The company will inspire and inform young people about the opportunities available to them, in parallel with business.

I welcome the one-year anniversary of the independent Your Life campaign, which aims to ensure that young people have the maths and science skills the economy needs. It was great for me to visit the Ford motor company in Dagenham, the spiritual home of the fight for gender pay equality, to see Your Life in action. A group of local schoolgirls had been invited to race cars around the car test track, and to experience how varied and exciting STEM careers can be.

A strong economy, where women are encouraged to fulfil their potential, also means that we are able to deliver the services society needs. We must make sure that everyone is given the support they need. In this year’s spending review, the Chancellor announced that the Government would provide £40 million for domestic abuse services, including refuges, between 2016 and 2020. Prosecutions and convictions for domestic violence have also risen to their highest levels ever. Last weekend, we launched a consultation on new measures to better protect victims of “stranger stalking” and to help to deter perpetrators. We also announced an additional £3.85 million to develop a new phase of the campaign to tackle teenage abuse within relationships. Since 2010, the “This is Abuse” campaign has encouraged teenagers to rethink their views of violence, controlling behaviour and what consent means within their relationships. This is helping to change attitudes that can underpin violence against women and girls. Our updated violence against women and girls strategy will be published shortly, and will set out how we will continue to support all victims of this abhorrent abuse.

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[Angela Crawley]

I agree with my hon. Friend. As I said, I hope the Government will take serious action on tribunal fees, because they are acting as a barrier to women taking serious action against rogue employers in the workplace.

[Jo Stevens]

On the review of employment tribunal fees that is under way—I understand that the report is with the Minister at the moment—nothing in the terms of reference allows for consideration of the abolition of those fees. I questioned the Minister on that in a Westminster Hall debate last week. Does the hon. Lady agree that this is a gaping hole in the review’s terms of reference?

[Angela Crawley]

I agree, and I hope that the Government will take serious action and seriously consider the impact that tribunal fees have on women in the workplace. It is important for the House to acknowledge that, given the state of the economy. According to the Women’s Budget Group, women stand to lose more and gain less, especially women in low-paid work, women with children and other caring responsibilities, and women who access services that have been successively eroded in the name of austerity.

In considering the effects of the economy on women, the Scottish National party—the effective Opposition in the House—calls on the Government to recognise that their spending cuts adversely affect women more deeply than men; to understand that measures to remove services can and will drive women into a poverty trap; and to accept that the signs of economic recovery hailed by the Chancellor have in fact disproportionately benefited male workers.

The SNP welcomes the Chancellor’s decision to reverse the tax credit cuts. It must have been a tough decision for him, but it means that the constituents of Members on both sides of the House will not have to make even tougher decisions, choosing between the basic necessities of life. That is especially important to those in low-paid employment and on zero-hours contracts, who, more often than not, are women. The immediate result of the Chancellor’s reversal of his tax credit plans is that working families have far less to worry about, but there are still £12 billion of cuts in the spending review, and, ultimately, they will disproportionately affect women. The tax credit reversal means that women can worry less, but they will continue to worry as they struggle with rent and bills and are unable to keep up payments. Single mothers, raising children on their own, should not have to worry about such matters. However, I applaud the Chancellor for listening to his opponents here and in the other place, and reversing the tax credits decision.

In analysing the effects of the economy on women, we must consider the differences in employment trends according to gender. We must bear in mind that in the UK, 69% of women are employed, compared with 78.5% of men. While that difference is not overwhelming, there is a gender-related difference. Of those women in work, 8.4 million are in full-time employment and 6.2 million are in part-time work. The comparable figures for men show that the vast majority are in full-time employment. That means that 42% of the female workforce are in part-time employment, compared with 13% of men. Those figures expose massive gender inequality in the workplace. If we look more closely at the composition of women’s employment, we see that women are more likely than men to work as employees rather than employers, and are less likely to be self-employed. In fact, only 32% of all self-employed people are women.

Research carried out recently by the International Monetary Fund found that when women work, economies grow, and that economic growth is even more dramatic when the gap between women’s and men’s participation in the labour force is reduced. Given the current figures and in the absence of any increased effort to close the gender gap, we are putting our economy at a disadvantage. In 2014, figures showed that 1.1 million small and medium-sized enterprises in the UK were led by women—only 20% of the total. In October this year, it was reported that only 26% of FTSE 100 directors were female. That simply is not good enough. Women’s participation in the workforce should be safeguarded and encouraged. In short, the gender pay gap must be addressed.

The autumn statement confirmed the Chancellor’s acknowledgement that removing tax credits would not automatically correct the problem. I urge the Government to change tack and recognise that the right way to bring about economic recovery is to stimulate our workforce. In particular, they should ensure that our female workforce are protected, rather than forcing people into deeper poverty and decimating social welfare.

The £12 billion that will be cut from the welfare budget includes cuts in carer’s allowance, disability benefits and employment and support allowance. Given that child benefit is to apply only to a woman’s first two children, that will mean hardship for families, not to mention the absolutely abhorrent rape clause, which the Government have repeatedly failed to justify. The benefits to which I have referred are most frequently accessed by women. For example, 58% of carers in the UK are women; the figure rises to 60% when those who care for more than 50 hours per week are taken into account. Women make up 73% of those who receive carer’s allowance for caring for more than 35 hours per week.

In Scotland alone, there are an estimated 759,000 unpaid carers: a huge section of society. The work done by carers—people prepared to put aside their own needs to look after an ill or disabled loved one—must be recognised by all Governments. It is vital to our society, and can take up the time most people commit to full-time employment, which carers could otherwise be in.

Carers UK has found that, on top of caring for loved ones, carers are twice as likely to suffer ill health. These are certainly not the people who should be punished by the cuts to the welfare budget. In fact, we should be championing the efforts of carers in this country. When we consider the billions of pounds the NHS saves, year on year, due to the contribution and diligence of unpaid carers, it is time that the Government stood up and recognised the hard-working carers across our society. They contribute massively to our economy, a contribution that amounts to a net saving in the healthcare budget. Is this not exactly the sort of practice promoted by the Prime Minister under the concept of the big society? If so, it is unjust for the Government even to consider the removal of the carer’s allowance lifeline.

The Chancellor has again made a great deal of the economic recovery. However, the benefits of the recovery have been exclusively for men. I have spoken repeatedly in the House against the gender pay gap. At present, a woman takes home 85p for every pound earned by a man. That has a serious economic impact on working women and on our economy. Perhaps we are supposed to be pacified by the introduction of the new living wage, but it is by no means a living wage at all. As I have said, women are more often on zero-hours contracts and in part-time work, so a slight increase to the hourly wage will not help women who cannot work as many hours as men, perhaps due to caring or childcare responsibilities.

If we look at the people the Government are aiming to help, they are almost exclusively those on higher incomes. The Conservatives have cut income tax for all workers, most of whom are men, and increased the individual savings account allowance benefit for those with high savings, who, incidentally, tend to be men. The beneficiaries of the transferable tax allowance are 84% male. We have allowances for tax cuts largely for men. Where have such allowances come from? The welfare budget—in other words, services accessed mostly by women. These neo-liberal policies consistently deliver more for men than women. As the International Monetary Fund suggests, an increased gender gap restricts economic growth.

I want to highlight the fact that women are most harmed by the welfare cuts, and that the impact of austerity can be measured mostly in the loss of money in women’s purses and family budgets, and in their decreased spending power relative to men’s. I will leave the House with this thought: the report by the Women’s Budget Group stated that by equalising men’s and women’s participation rates, we could add more than 10% to the size of the economy. Let us not simply pay lip service. Let us deliver on that promise.

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[Seema Kennedy]

As always, my right hon. Friend makes an excellent point.

There are historical reasons for the gender pay gap, but some of the statistics can lead us down the wrong track. The motion says that our pay gap is

“higher than the EU average”

That may be so, but in many of these countries fewer women are actually working. We want more women in work rather than on benefits. I want the gender pay gap to be eliminated not only for women under 40, where we know the gap is closing, but for women over 40. We cannot explain the gap by discrimination, because the Equal Pay Act 1970 has been in force for the whole of my lifetime. When there are instances of discrimination, they should be pounced on. I am looking forward to hearing the Minister’s responses as to how the Government are going to act on that and on maternity discrimination—

[Jo Stevens]

rose—

[Seema Kennedy]

I am sorry but I am not going to give way again, as I do not have much time left.

Our manifesto promised a consultation on closing the gender pay gap: it is due to report shortly, and I look forward to seeing the results. I also welcome the proposal to require businesses with more than 250 employees to publish their salaries in order to eliminate that gap—transparency will work there.

The whole thrust of the Government’s productivity agenda is to make our economy more competitive globally. We need to get everybody—women and men—into more highly skilled, productive jobs. We can do that only through proper, long-term investment in jobs that make us competitive on a global level. Investing in education and infrastructure is absolutely key; it is what all of us should be aiming for. Yes, we need a stronger economy for our daughters—or, in my case, for my niece—but we also need it for our sons.

I endorse the words of my right hon. Friend the Member for Basingstoke and the hon. Member for Sunderland Central. I do not want to see these motions on the Order Paper. I do not want to be seen as a passive recipient of the Government’s largesse. I am an autonomous person, and an economic actor in my own right. What I want is a stronger economy from which we can all benefit.