Equal Pay and the Gender Pay Gap

Debate between Baroness Morgan of Cotes and Chris Stephens

Wednesday 1st July 2015 Commons Chamber

[Nicky Morgan]

I know that the hon. Lady is new to the House and that she will not have seen all the debates in the previous Parliament when we talked about the impact of her party—the economic legacy left to us and the justice—[Interruption.] The issue, honestly, is that the best way to have justice for women and children, given the earlier statement by the Secretary of State for Work and Pensions, is to have an economy that works for all, where there are jobs for all, paying good wages, and where we help all children to reach their aspirations.

[Chris Stephens]

On equal pay audits and employers, some of those employers who are found liable will be public bodies. Indeed, public bodies are being taken to tribunal at the moment, as I indicated earlier, including my former employer, Glasgow City Council. If public bodies are found liable with regard to equal pay at tribunal, what action will the Government take to help them because they will say, “This is costing the taxpayer money”, and will go to the Government for some of that to be recouped?

[Nicky Morgan]

The hon. Gentleman makes an important point. Of course if a public body were found to be liable we would need to work out what the situation was and the context in which that had occurred, but I go back to a point that was made earlier. To be fair, the motion says, “Let’s have the transparency, and the regulations and the consultation, so we know exactly where there is a gender pay gap,” and therefore employers, before being taken to a tribunal, can address the issue for themselves, rather than—I say this as a former lawyer—providing more work for the lawyers and less immediate pay equality for people working in those organisations.

As a result of the actions this Government have taken, and as a result of having a strong economy, women are playing a greater role than ever before in the labour market. There are more women in work than ever before. There are also more women-led businesses than ever before, and critically, as the hon. Member for Ashfield said, the gender pay gap is the lowest on record—she obviously knew that I would point that out at some point. I am pleased to say that it has been virtually eliminated among full-time workers under 35.

The hon. Lady also talked about the full-time and part-time differences. That is interesting because the gender pay gap based on median hourly earnings, excluding overtime, has narrowed for full-time employees to 9.4% compared with 10% in 2013, and for part-time employees the higher rate of pay for women than men results in a negative gender pay gap. Although there is evidence that the part-time gap has widened in the long term, it has remained relatively stable in recent years, standing at minus 5.5% in April 2014. But the overall points remain: there is a gender pay gap and we would very much like to get rid of it.

While the fact that the gender pay gap has narrowed is something to celebrate, I am in no way complacent. That is why we pledged in our manifesto to go further. We will publish a consultation in the coming weeks to seek views on how best to implement our commitment to require employers to publish gender pay information.