Women and Men: Pay Gap

Baroness Scott of Bybrook Excerpts

Wednesday 8th March 2023 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

Robust equal pay protections in the Equality Act made it unlawful to pay men and women differently for the same work or work of similar value. However, on average women earn less than men over the course of their careers. This is caused by many factors, including women being more likely to take time off work because of caring responsibilities and to work in lower-paid occupations and sectors. The Government are committed to helping women reach their full potential and are changing the culture of the workplace by enabling more people to request flexible working, extending redundancy protection for those on maternity leave, introducing carer’s leave, and strengthening protections against harassment in the workplace.

[Baroness Twycross (Lab)]

I thank the Minister, and wish her a happy International Women’s Day. Recent analysis by the TUC shows that women effectively work for free for two months of the year. It will take 20 years to bridge the gender pay gap, which is even greater for older women. On International Women’s Day, will the Minister agree that this is simply not acceptable and let the House know exactly how the Government plan to right this wrong?

[Baroness Scott of Bybrook (Con)]

I wish a happy International Women’s Day to everybody in the House as well. I said some of the things that the Government are doing in my Answer, but the gender pay gap has fallen from 19.6% to 14.9% over the last decade. More importantly, the percentage of women in employment has gone up from 66.5% to 72.3%. The Government are doing something for women and will continue to do so because they think that it is an extremely important issue.

[Baroness Walmsley (LD)]

My Lords, what consideration has been given to the possibility that fewer women are being encouraged or equipped to take on the better-paid professions? Much of this goes back to schools, where fewer girls are taking up STEM subjects. What is the Minister going to do about that?

[Baroness Scott of Bybrook (Con)]

The noble Baroness is absolutely right. That is why we are working with schools and encouraging young people to take up STEM subjects in particular. Since 2010, there has been a 31% increase in girls’ entry into STEM A-levels. That is a great success, but there has also been a 34% increase in women being accepted on to full-time STEM undergraduate courses in the UK. I look forward to this increasing, because we need more women in these areas.

[Baroness Lister of Burtersett (Lab)]

My Lords—

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[Baroness Lister of Burtersett (Lab)]

Thank you. There is widespread agreement that an effective parental leave scheme that encourages fathers to shoulder more of the work of caring for young children is one of the keys to gender equality at work. There is also wide agreement that the current parental leave scheme is utterly ineffective. It is now five years since the Government began their review of the scheme. What has happened to it?

[Baroness Scott of Bybrook (Con)]

Interestingly enough, we have launched an online tool, hosted by GOV.UK, to make it easier for parents to check if they are eligible for shared parental leave, plan their leave, and give the required notice and information to their employer. The number of couples taking up shared parental leave and pay is increasing year on year; last year it was at 13,000. We are also looking at what more we can do to make it easier for fathers to take paternity leave, to challenge the entrenched assumption that caring is the sole responsibility of the mother.

[Lord Trefgarne (Con)]

My Lords, am I not right in thinking that the Royal Air Force has recently authorised women to fly fast jet aircraft on operations for the first time ever? If I am right and that is the case, can the Minister confirm that they are paid the same salary?

[Baroness Scott of Bybrook (Con)]

I am sorry; I cannot confirm that they are paid the same salary, but it is a jolly good job if they are doing the same as the men.

[Baroness Chakrabarti (Lab)]

Will the Minister reflect on whether we have a historic fatal flaw in equal pay legislation? We leave it to women themselves to find out the comparators and sue their employers. In every other area where the state wants to regulate, it takes on principal responsibility for inspection and enforcement.

[Baroness Scott of Bybrook (Con)]

I think the equal pay scheme has worked well since 1970, and it was protected but also enhanced in 2010. Many employers conduct regular equal pay audits in their companies, which is a good thing. It ensures that they are not acting unlawfully and that their staff are treated equally. In 2014, the Government strengthened equal pay protections by introducing mandatory equal pay audits for organisations that lose any equal pay claim, so if an organisation goes wrong, we will check it out.

[Baroness Bennett of Manor Castle (GP)]

The gender pay gap at tech start-ups in the UK is more than double the national average, with women paid 70p for every pound that men earn, according to a study by the salary benchmarking platform Figures. This is particularly disturbing given that there is no historic hangover in tech start-ups. Can the Minister tell me what the just-released UK science and technology framework is doing to address this situation?

[Baroness Scott of Bybrook (Con)]

I cannot say what it is doing, but I can get an answer for the noble Baroness.

[Baroness Brady (Con)]

We know that for every pound a man makes, a woman makes only 86p and that it will take 132 years to close that pay gap, but actually the biggest barrier to women furthering their careers is having access to high-quality affordable childcare. What are the Government doing about that?

[Baroness Scott of Bybrook (Con)]

My Lords, the UK has some of the highest-quality child provision in the world. We know the sector is facing economic challenges, but challenges are being faced across the whole economy. By the end of 2024-2025, an additional £510 million will have been provided for that sector, but we are not complacent and continue to look at ways to make childcare more affordable and to encourage families to use the government-funded support to which they are entitled.

[The Lord Bishop of London]

My Lords, in 2019 the Royal College of Nursing found that 90% of all nurses in the UK are women and that they fill less than a third of senior positions and earn on average 17% less than men. That is despite the fact that the Royal College of Nursing also noted that nursing is a gendered profession seen as a woman’s role. What steps are the Government taking to ensure that female nurses progress to senior positions?

[Baroness Scott of Bybrook (Con)]

I will talk to my colleagues in Health about that issue. I was not aware of it, but it is important and I will take it forward and come back to the right reverend Prelate.

[Baroness Janke (LD)]

My Lords, research has shown that the gender pensions gap between men and women is 17% at the start of women’s careers and a staggering 56% at retirement. What are the Government doing to make sure that women get a fair deal on retirement and do not lose out because they have taken on caring responsibilities or other unpaid but valuable work?

[Baroness Scott of Bybrook (Con)]

Measures have been put in place to improve the state pension outcomes for most women. More than 3 million women stand to receive an average of £550 more per year by 2030 as a result of the recent reforms. Under the new state pension, outcomes are projected to equalise for men and women by the early 2040s, more than a decade earlier than they would have under the old system, so I think we are on top of that issue.

[Lord Woodley (Lab)]

My Lords, the gender pay gap has reached 15% and is getting worse, not better. That is a disgrace, is it not, especially as more than half the women say they would use any additional money just to put more heating and lighting on in their homes, according to the Fawcett Society? It is unbelievable. How sad is that in Britain today? The ETUC and my own union, Unite, are clear that the most effective way to tackle the gender pay gap is through collective bargaining. Does the Minister therefore agree that negotiating a legally enforceable right to know what a male colleague is being paid for equal work would be a step in the right direction?

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[Baroness Scott of Bybrook (Con)]

The noble Lord is wrong. As I have already said, the gender pay gap is improving and, no, I do not agree that making that mandatory would make the position even better for women.