International Women’s Day
Debate between Baroness Burt of Solihull and Baroness Vere of Norbiton(5 years, 9 months ago)
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Baroness Vere of Norbiton (Con)
My Lords, I thank all noble Lords who have contributed today. It is indeed true: I regard myself as a champion of equality, albeit a reluctant one as I am rather irritated that we still need to have these debates. I truly wish that was not the case. In the olden days I did not like the word “feminist” because people used to tell me what to think and I do not like being told what to think. So I am very happy to be a sister, but perhaps I will not quite put on the T-shirt.
We have heard some powerful and moving messages from across the Chamber today. I cannot emphasise enough how important it is that we continue to discuss and debate gender equality to ensure that this issue gets the attention it deserves. We will be back the same time next year, but earlier in the day.
I have to cover education, employment, women’s leadership—particularly in public and civic life—discrimination, Brexit, the tragedy of violence against women and international considerations in 20 minutes. I do not have a hope. Therefore, if I cannot do justice to the questions asked by noble Lords, I will of course write. In fact, I very much look forward to that letter as it will give me an opportunity to go into more detail than I am able to do today.
I turn first to employment and education, which is a thread that runs through everything. Women can be empowered only if they are educated and gainfully employed so that they can have their own income. This was mentioned by so many noble Lords. Working from the top—I do not plan to address peerages; I am thinking more of women on boards—this issue has been around for many years. I was going to cite all the figures. It is true that we have made progress with women on boards, but not nearly enough. I am disappointed that these figures are not better. I recognise the restrictions of the pipeline and the other things that feed into our ability to get women on to boards, but I also find the paucity of women in executive roles very disheartening. I hope that in a few years’ time we will return to this and find that the numbers look much better than they do now.
The gender pay gap was covered by my noble friend Lady Williams of Trafford so I will not go into it in great detail. But it is worth remembering that reporting is just the start. We said that we would start noting how companies are doing on the gender pay gap. It is crucial now that employers use gender pay gap data to identify the barriers to women’s recruitment and progression. They must take action to break down those barriers; otherwise, what on earth is the point of reporting all this data? We have published evidence-based guidance on practical actions that employers can take to close the gap, alongside help to diagnose it: to figure out why their gaps are happening in the first place.
I turn to the speeches by my noble friend Lady Rock and the noble Baroness, Lady Crawley. On the gamut of tech and AI, was it not absolutely fascinating to hear about the algorithms written by men and how rubbish they are, as they do only one thing whereas we need them to cover everybody? There was some comment about what the Government can do. We are doing many things to make sure that the technology space becomes more diverse. We are supporting a scheme called the Tech Talent Charter. It is a private sector initiative designed to promote diversity in the tech workforce. The signatories to the charter pledge to implement recruitment and retention practices that will address the gender imbalance in tech roles. Some 290 companies are signed up to it, from international tech giants through to start-up SMEs and charities. All government departments have agreed to adopt the charter; DCMS was the first to sign up. This is one of the many tangible things we can do to get more women interested in tech and to make sure women are there to sort out our algorithms for us, because clearly they will not sort themselves out.
Another point to mention is that we are supporting female entrepreneurs. That is important. We have heard before that women often struggle to get loans from banks or equity from VC funds. The government-backed start-up loan system is providing funding and support to new entrepreneurs. Some 39% of loans go to women, so it is not quite 50%, but it could be worse. That is £450 million, which is a fair amount of money, and I wish those women great success.
Baroness Burt of Solihull
Is the Minister aware of the statistic from the British Bankers’ Association which shows that less than 1% of venture capital funding goes to women? Is that not shameful? Should we not do something about it?
Baroness Vere of Norbiton
I was not aware of that statistic. I knew the figure was low, but I did not realise it was that low. That is shocking. We certainly should look at that, but the British venture capital industry needs to take a long hard look at itself and figure it out, because it has significant funds and clearly women can make a great success of these companies. We should all call on it to look at that and make sure that the imbalance is sorted out.
In her speech, my noble friend Lady Redfern reminded us of some great female role models in the STEM sector. However, if we are to get the pipeline sorted out, we have to get young girls interested in the first place, early on, from primary school onwards. It is very important that they start at school, then get to college and university and are still doing STEM subjects. We announced substantial spending commitments in the 2017 Autumn Budget on maths, digital and technical education and we are funding programmes, such as the advanced maths premium, to increase the take-up of maths, computing and physics and to support better teaching of maths, science and computing in schools. To address the gender imbalance in computing, we are launching a computing pilot programme this year, to improve girls’ participation in computing as part of an £84 million investment to improve the teaching of computing in schools. This is essential for the AI issue that we talked about earlier. These things all build up together and should lead to greater success for women and girls in this area.
I was taken by the point raised by the noble Baroness, Lady Donaghy. I agree with her that not everything is great. Women are almost three times more likely than men to be working part-time, which is associated with zero pay progression. Women are around 65% more likely than men to be earning the national living wage. We all want to change these things. Now that we know what we are aiming for, I hope these figures will improve.
But how do we improve them? As my noble friend Lady Williams stated in her speech, the Government Equalities Office is working incredibly hard across departments at the moment on the female economic empowerment strategy. My noble friend outlined what this strategy hopes to achieve, so I will not dwell on it too much at this stage. However, I would like to talk about the Women’s National Commission, which the noble Baroness, Lady Gale, mentioned. She is right: it was disbanded in 2010. We do not have any plans to replace it at this time. However, the Government are very clear that the voice of women should be better heard by policymakers, and not just on a committee sitting in a room somewhere, but across government. The Government Equalities Office is doing a significant programme of work to make sure that women’s voices are better heard by policymakers. It is important that the Government really understand the issues that impact on women from every walk of life, and across every part of the Government’s agenda.
I will briefly pick up some issues mentioned by the noble Lord, Lord Crisp. He focused on the status of workers, nurses and carers on zero-hours contracts. To focus on the latter, zero-hours contracts cause a great amount of angst and can be quite controversial, but we know that many people working on zero-hours contracts, whether in the adult social care sector or elsewhere, value their flexibility. For some, it is an attractive feature of such a job. However, we are well aware that, for others, fixed contracts with definite hours are preferable. There is an organisation called Skills for Care, which is a workforce development organisation for the adult social care workforce funded by the Department of Health and Social Care. It provides advice to employers on how to attract and retain the most excellent staff with the benefits of offering a choice of different employment contracts.
Finally, on employment and education, my noble friends Lady Meyer and Lady Finn mentioned sexual harassment in the workplace. I am sure there is not a female in this Room who has not had something rather unpleasant happen to them in the workplace. We take this extremely seriously. We are committed to ending any harassment, bullying, intimidation and violence that women might face. The UK has some of the strongest workplace protections in the world, including explicit protection against sexual harassment in the workplace under the Equality Act 2010. The Government will consult this summer to explore whether these should be further strengthened.
I turn to international issues, because there was a significant amount of interest on those issues and I want to make sure that I cover them where I can. My noble friend Lady Hodgson started by talking about the Commission on the Status of Women and how the Government can help it be more impactful. This is the biggest annual international event on gender equality. It has produced some of the most impactful milestones in the history of women’s empowerment, including the convention on the elimination of all forms of violence against women and the Beijing Platform for Action. We are looking forward to the 25th anniversary of the Beijing Declaration next year. We will be working with like-minded countries to ensure that the CSW sets an ambitious programme of work for the next five years.
My noble friend Lady Hodgson also mentioned support for human rights defenders. The FCO and DfID strongly support the vital role that they and civil society organisations play in supporting sustainable development. For example, on international Human Rights Day in December, the Secretary of State for International Development spoke at an Amnesty International UK event to highlight the work of five inspiring female human rights defenders.
The noble Lord, Lord Crisp, mentioned the work of women in global health. This is absolutely critical. The Government appreciate that, without good health, nothing else can possibly follow. DfID supports developing countries to achieve international development target 3.8 on universal health coverage. This means ensuring that everyone, everywhere can access quality essential health services for prevention and care without suffering financial hardship. Investment in health workers, the majority of whom are women, is essential to achieve this. DfID invests in nursing and the broader health workforce through bilateral country programmes, multilateral partners and global initiatives such as the Global Fund to Fight AIDS, Tuberculosis and Malaria.
Furthermore on the subject of health, the noble Baroness, Lady Blackstone, made a very wide-ranging speech about sexual and reproductive health. The UK leads the world in our long-term support for comprehensive sexual reproductive health and rights. We are the largest donor to the United Nations Population Fund and the second-largest bilateral donor on family planning. In 2017 the UK committed to spend an average of £225 million per year over the next five years on family planning. To illustrate what this means, we estimate that every year our investment will support nearly 20 million total users of contraception. It will prevent 6 million unintended pregnancies and so prevent more than 3 million abortions, many of which would be unsafe. It will save the lives of more than 6,000 women every year.
My noble friend Lady Anelay turned our attention to Ethiopia and FGM. Noble Lords will know that the UK has long supported the end of FGM, particularly through our financial support. The flagship programme currently in place comes to an end this year, but in 2018 we announced a programme with a further £50 million of UK aid, which again will be the single biggest investment worldwide to date by any international donor. This programme will continue to tackle FGM across the most affected countries in Africa. We are currently in the early stages of competitive tendering, so we are not yet aware of where that programme will cover. Of course I cannot prejudge its conclusion today, but I am sure that the results of that tendering will be available very soon.
My noble friends Lady Helic and Lady Hodgson spoke about the Preventing Sexual Violence in Conflict Initiative—an absolutely critical and long-term thing, which we must continue to pressure on. We are committed to securing justice for survivors and breaking the culture of impunity by holding the perpetrators to account. The next PSVI conference will take place in November 2019. It is a three-day survivor-centred event and will celebrate progress, address remaining challenges and secure further commitments. It aims to focus on: accountability challenges; support for children born of rape; ensuring service provision for all survivors; and working with militaries, faiths and the media.
The noble Lord, Lord Hussain, mentioned Kashmir. The UK Government are concerned by any allegations of human rights violations and abuses. Our position is that any allegations must be investigated thoroughly, promptly and transparently. We noted the concerns raised in the report by the UN Office of the High Commissioner for Human Rights in June 2018 and continue to encourage all states, including India and Pakistan, to uphold human rights.
My noble friend Lady Helic mentioned peace in Afghanistan and of course we agree with her entirely. We continue to press for peace negotiations to be inclusive and representative of Afghan society by including women’s participation. We also believe that any political settlement in Afghanistan should respect the rights of all Afghans, and that includes women.
The role of women in peace was also mentioned by my noble friend Lady Hodgson and the noble Baroness, Lady Miller. The UK is strengthening partnerships with organisations that share our interest in building women’s capacity to participate in mediation processes, including the UN, other multilaterals and women’s mediation networks. But the UK has a National Action Plan on Women, Peace and Security, which is jointly owned by the Ministry of Defence, the Foreign and Commonwealth Office and DfID. It sets out how the UK Government will integrate a gender perspective into their work to build security and stability overseas, protect the human rights of women and girls and promote their meaningful participation in conflict prevention and resolution.
I turn briefly to an issue on which I will certainly write to the noble Baroness, Lady Thornton. We obviously look forward to the report that will come from CEDAW. The UK was examined by the CEDAW committee on 26 February in Geneva and it will issue its conclusion, observations and recommendations later this month. We will of course consider its recommendations fully. If I can provide her with any more information, I certainly will.
On violence against women and girls, and domestic abuse, my noble friend Lady Williams opened with a strong review of where we are but perhaps I may put a few markers down on specific things. The noble Baroness, Lady Gale, asked about the DA commissioner and whether that person could be independent. The commissioner will provide public leadership on domestic abuse issues and play a key role in overseeing the provision of services in England. Their day-to-day independence from Ministers will be particularly important when called upon to identify local areas where service provision is insufficient.
The noble Baroness, Lady Thornton, asked about the Istanbul convention and its ratification. I believe that, if the domestic abuse Bill is passed, it will ratify the Istanbul convention.
I have 30 seconds to cover public service, recognition of great leaders and Brexit. Well, Brexit is out of the window. We have had so many interesting speeches today on the representation of women. So many Members of your Lordships’ House, despite not being elected themselves, have been very involved in getting others elected to the other place, to councils and elsewhere. We are clear that politics must be representative. We have to do whatever we can to make sure that we have the right sort of diversity.
It is also quite a rough and tough world out there at the moment. I do not know whether any noble Lord has seen the video of Amber Rudd reading out some of the abuse that she has got on Twitter. It is appalling and shocking, and we must fight back against those things. It is not normal: people should not be speaking in that way, whether in person or anonymously.
Sadly, I must conclude, but I promise that my letter will be a very good one. Once again, I thank all noble Lords. It has been an excellent debate. This House works best when we work together, as noted by the noble Baroness, Lady Burt. So let us do just that. Perhaps, as noted by my noble friend Lady Finn, we can structurally re-engineer our whole society—but I do not want to start a gender war, as noted by my noble friend Lady Meyer. So what must we do? We must march on. We know what needs to be done and I beg to move.
Small Business Index
Debate between Baroness Burt of Solihull and Baroness Vere of Norbiton
Baroness Vere of Norbiton
My noble friend refers to the Making Tax Digital initiative, which was announced in 2015, and he is right that it is due to become mandatory in April of this year. Ninety-eight per cent of businesses already file their VAT returns online; I certainly used to do so and it is by far the easiest way. We are working closely with software industry suppliers to develop sector-specific software to ensure that all businesses can comply. More than 100 products are now available, some of which are free, but I reassure noble Lords that nobody who is unable to go digital will be forced to do so.
Baroness Burt of Solihull (LD)
My Lords, I have to agree with the noble Lord, Lord Harrison. The Small Business Index paints a dismal picture and late payment is a very big issue for the FSB, which is launching a campaign on it today. But even on government-procured projects, small businesses are still being let down. This could be addressed through project bank accounts, which stop tier 1 suppliers such as the Carillions of this world using smaller suppliers as a piggy bank to assist their own cash flow. The Chancellor promised action in the last Spring Statement. Will the Minister ask him whether this simple step could be implemented in the coming Spring Statement?
Baroness Vere of Norbiton
The noble Baroness raises a very important point and I will certainly write to her with any further information I have about whether we will set up project bank accounts. Working capital does indeed sometimes get sucked out of small businesses and into large companies, and it is unacceptable. She referred to the report as “dismal” and I have to disagree. I agree with her that it is mixed; however, the annual change in confidence is minus 7.4, compared with an average annual change of minus 8 over the last four years, so we are nowhere near the dreadful situation we were in a few years ago.
Sexual Offences Legislation
Debate between Baroness Burt of Solihull and Baroness Vere of Norbiton
Baroness Vere of Norbiton
I acknowledge the strong feelings on all sides of the House on this matter. It is extremely important that we get the balance right. Since the events to which noble Lords have referred, a number of steps have been taken. For example, the College of Policing guidelines on media relations, which dictate when a person’s identity should be released, have been subject to consultation. They were updated in 2017, and further updated in 2018 to include deceased persons. A lot has gone on in this area and I believe there has been much improvement.
Baroness Burt of Solihull (LD)
My Lords, the coming Domestic Abuse Bill is very welcome but there is a gap, in that it does not seem specifically to cover people whose immigration status is uncertain. They risk being taken as immigration offenders if they report sexual violence, which makes them reticent to report incidents. Does the Minister agree that anyone subject to sexual violence should have equal recourse to the law, regardless of their immigration status? Could that not be made clear in the Domestic Abuse Bill?
Baroness Vere of Norbiton
I thank the noble Baroness, Lady Burt, for raising that issue. The Domestic Abuse Bill was published in draft form on 21 January, following a long consultation that received 3,200 responses. Its goal is to deter offenders and protect victims. The noble Baroness is quite right that people whose immigration status is unsure need protection too, and I hope she will put forward the points that she has raised as the draft Bill comes to your Lordships’ House.
Humanist Marriage Ceremonies
Debate between Baroness Burt of Solihull and Baroness Vere of Norbiton
Baroness Vere of Norbiton
My noble friend will know that that is a permissive power, not an obligation. Following the 2013 Act, the Law Commission undertook a scoping study in 2015. It concluded that exercising the 2013 power is not a viable option because of the difference that would then appear between the different sorts of groups. The Law Commission is a statutory independent body. It makes sure that the law is fair, modern, simple and cost-effective. I do not believe that we should ignore its recommendations. We should listen to what it has to say and look at all marriage ceremonies across all sorts of organisations and reach a sensible and appropriate conclusion.
Baroness Burt of Solihull (LD)
My Lords, everyone likes a good wedding and it should be the happiest day of your life, but, as has already been discussed, we know that humanist marriages are not legally recognised and couples have to have a separate civil ceremony. Aside from the human rights implications and the fact that humanist marriages are recognised in Scotland, Northern Ireland and the Crown dependencies, there is evidence that in Scotland, where 19% of weddings are humanist, the sharp decline in marriages has been reversed and the increase in divorce rates has fallen. So whether it is permissive or not permissive, does the Minister agree that it is good thing and a good time for England and Wales to catch up?
Baroness Vere of Norbiton
I agree with the noble Baroness that everybody loves a good wedding, and I have had two.
Baroness Vere of Norbiton
As has she. I take on board exactly what the noble Baroness is saying. All I am saying is that all these points are being taken into consideration. We understand the comments that have been made in your Lordships’ House today. Obviously we are making progress on this, but we must wait for the Law Commission review.
Prisons: Children of Prisoners
Debate between Baroness Burt of Solihull and Baroness Vere of Norbiton
Baroness Vere of Norbiton
The noble Baroness is completely right, in that short sentences for men or women are a significant factor in family breakdown. The Lord Chancellor has made it very clear that he wants to see the number of short-term sentences decline. That of course depends on the independent judiciary and the sentences that they hand out, but there is lots that the Government can do. We are ensuring that the National Probation Service pre-sentencing report includes information on dependants. If that information is in the pre-sentencing report, the judge sees it and can then use it as a mitigating factor in the sentence that gets handed down. Furthermore, we are rolling out an excellent piece of work by Dr Shona Minson, Safeguarding Children when Sentencing Mothers. That is important work and we need to get that message out there, but at the end of the day it will be up to our independent judiciary to hand down sentences.
Baroness Burt of Solihull (LD)
My Lords, it is estimated that over 200,000 children are affected by parental imprisonment across the UK. We do not know the actual number because neither the courts nor local services routinely ask them. These children are left in the shadows, their needs often forgotten, with devastating impacts. Despite their situation, they are locked out of the support that they need to get a better chance in life. Will the Minister heed Barnardo’s call for the Government to appoint a lead Minister to oblige the courts to ask about the children of people being sent to prison and ensure that adequate childcare and support arrangements are in place?
Baroness Vere of Norbiton
My Lords, this is a very complicated area. The noble Baroness is not quite right: we do encourage courts to ask defendants, whether they are male or female, whether they have dependent children. What happens is that some mothers, in particular, fear that their child might then be taken into care, and they may well have made their own informal arrangements for that child and therefore think, “Actually, I’m not disclosing that I have children”. It is therefore very difficult for us to pick up that information.
The noble Baroness mentioned Barnardo’s. I pay tribute to the work that it has done on the National Information Centre on Children of Offenders, a comprehensive website that was launched in May this year so that all government agencies, both nationally and locally, can find out best practice and work out the diverse needs of these very vulnerable children.
Prisons: Women with Dependants
Debate between Baroness Burt of Solihull and Baroness Vere of Norbiton
Baroness Burt of Solihull (LD)
My Lords, the Howard League for Penal Reform recently found that only 5% of children whose mothers are sent to prison remain in their home. I wonder who is being punished here. Will the Minister take back to this long overdue strategy for female offenders a presumption against prison for short-term sentencing of women?
Baroness Vere of Norbiton
My Lords, there is already a presumption against short-term sentencing. Custody is imposed only when an offence is so serious that only custody is merited. We are looking at how we can strengthen this particular guideline. Families as a whole play a very important part in a child’s upbringing so of course we must look at getting rid of short sentences for women, but we must also look at getting rid of them for men too.
Sexual Harassment
Debate between Baroness Burt of Solihull and Baroness Vere of Norbiton
Baroness Vere of Norbiton
My noble friend is quite right that it is often where there is a disproportionality of power that abuse occurs. The Prime Minister took immediate action when these allegations surfaced. She set up a cross-party working group, chaired by the Leader of the House of Commons, which aims to set up, as quickly as possible, an independent complaints and guidance system for everyone working in Parliament. The group is making good progress and will report back to Parliament before the Christmas Recess.
Baroness Burt of Solihull (LD)
My Lords, sexual harassment in the workplace is covered under the Equality Act, but outside the workplace it is not a criminal offence in its own right. Prosecutors have to use different pieces of legislation, depending on the nature of the offence. Two-thirds of UK women report having been sexually harassed. In light of this, does the Minister think it is time for the Government to look at this and conduct a review of whether sexual harassment should be a specific criminal offence in its own right? Everyone would then be clear on what it is and where the boundaries should be.
Baroness Vere of Norbiton
The noble Baroness is quite right that sexual harassment and other more serious sexual offences are addressed in a number of pieces of legislation, for example the Protection from Harassment Act 1997 and the Sexual Offences Act 2003. In these cases, the first port of call for a victim is obviously the police. The police have received a significant increase in training about sexual offences. We are not currently planning to review the legislation, as we feel that it is working.
Unpaid Internships
Debate between Baroness Burt of Solihull and Baroness Vere of Norbiton
Baroness Vere of Norbiton
My noble friend makes a very important point; it is one of the reasons why further legislation might be difficult and would have unintended consequences. In 2015 1.93 billion hours were volunteered by people in this country. I think all noble Lords will agree that that is marvellous, but it was 7% less than the hours volunteered in 2012. We need to keep our volunteers able to do the work that they do because it is extremely valuable.
Baroness Burt of Solihull (LD)
My Lords, on the wider point about minimum wage contraventions, the Minister has outlined the steps that the Government are taking to tackle what she rightly described as a scourge, and those steps are welcome. However, on the point of criminal convictions, between February 2014 and September 2016 only three employers were prosecuted under the criminal law. Although criminal prosecutions are effective in enabling people to get back money that is owed to them, what steps is the Minister taking to bring the full weight of the law to the most extreme cases of non-compliance?
Baroness Vere of Norbiton
My Lords, as I have already mentioned, during the time that this legislation has been in place there have been 14 prosecutions and, as I said, those were for the most pernicious and serious cases. We tend to choose the civil route so that people can get their funding much quicker. However, there is one other way in which we can ensure that employers step up to the plate and stop exploiting workers: only last week we named and shamed an additional 260 companies across the country that are not doing right by their workers. I do not know whether noble Lords have had a chance to look through their local media, but I have recently, and it is interesting to note how often local media pick up these stories and ensure that people in their local communities understand what their local companies are doing.
Equality: Hung Parliament
Debate between Baroness Burt of Solihull and Baroness Vere of Norbiton
Baroness Vere of Norbiton (Con)
My Lords, the Government’s commitment to equality is as strong today as it ever has been. There will be no backsliding or change of tack. I can assure noble Lords that events since the election have no impact on equality issues. The agreement with the DUP covers Brexit legislation, security legislation and votes on the Queen’s Speech.
Baroness Burt of Solihull (LD)
I am grateful for that Answer. However, we all know that the Conservative Party has given £1 billion to a party that denies the rights of the LGBT community and the rights of women over their own bodies in return for being able to stay in power. I am very grateful for the Minister’s assurances, but further to the amendment tabled in the Commons today will she ask her right honourable friend the Health Secretary to think seriously about extending the rights to free abortions on the NHS, where appropriate, to all British women, in Northern Ireland as well as on the mainland?
Baroness Vere of Norbiton
My Lords, health, and by extension abortion law, in Northern Ireland is a transferred matter and the responsibility of the Northern Ireland Executive. The policy position is that residents of Northern Ireland are entitled to access abortion services in England, but in general they must make their own private arrangements for doing so. On Tuesday, during the debate on the Queen’s Speech, the noble Lords, Lord Reid and Lord Eames, reminded us of the history of Northern Ireland, and it must have struck noble Lords, as it did me, that it is far removed from much of what we will have experienced. That is a central consideration as we have this debate. I believe that it is right that abortion is a devolved matter. To pay for women from Northern Ireland seeking abortion in England might risk disrespecting the democratic decision of the Northern Ireland Government.
Equality Act 2010 (Gender Pay Gap Information) Regulations 2017
Debate between Baroness Burt of Solihull and Baroness Vere of Norbiton
Baroness Vere of Norbiton (Con)
My Lords, the Secondary Legislation Scrutiny Committee highlighted these regulations as instruments of interest in its 20th report, and I am delighted to be involved with this debate on such an important issue. These regulations are the first use of the power under Section 78 of the Equality Act 2010. Section 78 delegates power to Ministers to make regulations requiring employers in Great Britain with at least 250 employees to publish information showing whether there are differences in pay between their male and female employees.
These regulations will affect around 8,000 employers and more than 11 million employees. An estimated 3.8 million employees will also be covered by separate regulations laid last week that will apply to the public sector. In total, the new regulations will cover nearly half of the workforce.
The gender pay gap is not about men and women being paid differently for the same job. Unequal pay has been prohibited since 1975. The gender pay gap is a measurement of the difference between men and women’s average earnings. The UK’s overall gender pay gap has fallen over time. It was 25% 10 years ago and is now 18.1% according to the latest ONS statistics. While this is moving in the right direction, progress is still too slow and voluntary reporting has not led to sufficient progress. According to McKinsey, eliminating work-related gender gaps could add £150 billion to our annual GDP by 2025.
Following two public consultations and extensive stakeholder engagement, the Government are delivering their manifesto commitment to require large employers to publish a range of complementary gender pay gap measures every year. Employers will be required to publish the difference between the average hourly rate of pay for male and female employees, calculated using the mean and the median. This will give employers a better understanding of their gender pay gap.
The regulations cover bonuses too. ONS figures show that more than £44 billion was paid out in bonuses across the UK economy during the 2015-16 financial year. We are requiring employers to publish the difference between the average bonuses paid to men and women as well as the proportions of male and female employees who receive a bonus. This will encourage employers to ensure that their practices for awarding bonuses are fair and transparent.
Fewer women than men are employed in senior and higher-paid positions. Requiring employers to report on the proportions of men and women in each quartile of their pay distribution will ensure that they consider whether there are any blockages to women’s progress. It could also be valuable in making comparisons with competitors who may be benefiting from actively nurturing female talent. The regulations will require employers to publish the information on their own website every year in a manner that is accessible to employees and the public. A written statement signed by a director or a senior employee must also be published to confirm the accuracy of the information. As well as appearing on an organisation’s website, the information will also be published on a government-sponsored website. Requiring the information to be published in this way will establish a database of compliant employers and make all published information available in one place.
The regulations do not create any additional civil or criminal penalties. Failure to comply would be an “unlawful act” and fall within the existing enforcement powers of the Equality and Human Rights Commission under the Equality Act 2006. The Government can consider alternative enforcement mechanisms if the level of compliance is not satisfactory. The Secretary of State will review the regulations five years after commencement.
The Government have worked closely with ACAS to develop clear guidelines to help employers implement the regulations, and they will be published shortly. Transparency is not a silver bullet but it will incentivise employers to analyse the drivers behind their gender pay gap and explore the extent to which their own policies and practices may be contributing to that gap. These regulations are only one element of the Government’s strategy to modernise workplaces. We have already extended the right to request flexible working to all employees; introduced a new system of flexible parental leave; and committed to providing 30 hours of free childcare a week for working families.
The principle of greater transparency on gender pay differences has cross-party support. I hope that noble Lords will support the regulations. I beg to move.
Baroness Burt of Solihull (LD)
I welcome the noble Baroness to her new post. I hope that every regulation or piece of legislation that she introduces will be as good and progressive as these regulations. I welcome these regulations on behalf of my party, and especially all those colleagues who worked tirelessly in coalition to make this legislation a reality. I am so glad that the Conservative Government have kept their word and implemented this Liberal Democrat policy, which I note found its way into their 2015 manifesto, although it had not been there in 2010. I pay tribute particularly to the hard work and sheer determination of Jo Swinson, who got this through against the odds.
Equal pay and better gender representation in business is good for the economy as well as helping to create a fairer society. As Jo said:
“Businesses have a choice, to view gender pay reporting as a burden, or as a catalyst to seize an opportunity. When competitive advantage is increasingly about attracting and developing the best people, a better understanding of how you're valuing and rewarding your people is powerful. Gender pay data may be uncomfortable, but at least it can no longer be ignored”.
As many noble Lords may know, although progress is being made, figures by the Fawcett Society show that women are essentially working the last month and a half of the year for free. Looking at it in these stark terms, we can all see how ludicrous this is. However, as the noble Baroness has already said, this legislation will not be a silver bullet as we would all wish. More needs to be done.
Girls and women outperform men at every stage in their educational life, yet we constantly see women not reaching the top jobs. We must ask why this is. Report after report points to women missing out on bonuses, promotions and pay rises as they get older. When the babies come along, or other caring responsibilities arise, it is too often the women who makes an economic sacrifice. As the Minister has already said, one of the steps that we introduced in coalition was equal parental leave—a small step in making men and women equal, and giving men a better opportunity to bond with, and care for, their babies.
Therefore, let us focus today on another good, progressive piece of legislation. Let us welcome these regulations, the better-informed debate they will engender and the stepping stone they will provide to better workplace equality.