International Women’s Day

Baroness Vere of Norbiton Excerpts

Friday 8th March 2024 Lords Chamber

Moved by

[Baroness Vere of Norbiton]

That this House takes note of International Women’s Day and the steps taken to promote the economic inclusion of women.

[The Parliamentary Secretary, HM Treasury (Baroness Vere of Norbiton) (Con)]

My Lords, I am delighted that the noble Baroness, Lady Casey of Blackstock, has chosen this debate in which to make her maiden speech. She has worked tirelessly over the last 30 years in an extraordinary career dedicated to public service and helping others; she is truly a worthy addition to your Lordships’ House. I am sure that all noble Lords look forward with great interest to what she has to say.

It gives me great pleasure to open this year’s International Women’s Day debate. This day is celebrated all over the world in different ways, and I am pleased that we are recognising it in your Lordships’ House today. International Women’s Day is an opportunity to reflect on the vital contribution that women make across different spheres—political, cultural, social and economic—while also recognising that work still needs to be done to ensure the safety, security, equality and empowerment of women around the world.

The theme of today’s International Women’s Day is “Inspire Inclusion”. Inclusion is not about women being present—being in the room. How often are women in the room, but, frankly, not really expected to speak? Inclusion should mean women actually feeling able to express an opinion, playing a key part in the decision-making process at all levels of an organisation, government and across society. It means women—more women—becoming leaders. Yet, globally, women continue to be excluded from any level of the labour market, and when they are employed, they work longer hours for less pay—on average 20% less, in fact. Women represent only 30% of entrepreneurs and receive just 4% of financing. There is still much to be done for women’s inclusion, real inclusion, to be fully realised.

I turn first to international policy and aid. The UK has long been a global champion of women’s rights, and many Members of your Lordships’ House have been and continue to be at the forefront of that work; I look forward to their contributions today. Women’s rights are most under threat when they live in a country at war. We have witnessed that in Ukraine, where Russia’s illegal invasion has led to millions of families being displaced and a sharp rise in poverty. My thoughts are with the millions of women and girls who have suffered in the two years and two weeks since that conflict began. The UK continues to stand with Ukraine. The fiscal support the UK is providing contributes to maintaining public services, and our humanitarian funding protects the needs of the most vulnerable, including women and girls—for example, by supporting survivors of gender-based violence. Conflicts such as these throw into sharp relief the importance of legislation that facilitates the economic and social inclusion of women, both domestically and worldwide.

We continue to uphold our International Development (Gender Equality) Act, which sets out a legal requirement to consider gender equality in how we provide official development assistance. We continue to look at ways we can go further to prioritise women and girls in our international work. To set out an agenda that puts women and girls centre stage, we published the international women and girls strategy in March last year and the international development White Paper in November. As set out in the White Paper, our target in the UK is for at least 80% of the Foreign, Commonwealth and Development Office’s bilateral aid programmes to have a focus on gender equality by 2030.

The White Paper also announced a new global campaign for women’s economic empowerment, which will drive forward global efforts to ensure that every woman has the equal right to decent work, the freedom of safe work of her choice and the resources to reach her potential. A key part of that is integrating gender equality into our economic diplomacy, which means leading by example to create meaningful jobs for women and identifying evidence-based solutions to expand women’s voices.

A strategy that focuses on women and girls has many benefits. The evidence shows that investing in women and breaking down the barriers they face accelerates international development. That is why British International Investment, the UK’s development finance institution, continues to champion “gender-smart investing” and why it has pledged that 25% of its new investments in the period 2022-26 will focus on supporting women’s economic empowerment. In Bangladesh, for example, BII is providing a $52 million loan for the construction of a greenfield manufacturing facility, which will support new business growth in the manufacturing sector. The loan is expected to create 1,000 jobs, and 50% of these will be held by women.

Building on this, the SheTrades Commonwealth programme helps to provide women-led businesses with various elements of support, including technical assistance, networking and support from specialised business support organisations. With UK funding, SheTrades Outlook is a unique global online platform that tracks and compares countries’ progress on trade and gender equality, sharing good practice and lessons learned and promoting women’s economic empowerment.

Ideally, different policy goals must work in tandem. Later this month we are hosting a dialogue at Wilton Park on “Building Women’s Economic Empowerment into Climate Transitions”, which will bring together key actors—academics, civil society, multilateral institutions, the Government and the private sector—to explore how we can build women’s economic empowerment into the green growth agenda. The UK Government will continue to use the full weight of our diplomatic and development offer to put women and girls, in all their diversity, at the heart of everything we do.

Turning now to the domestic front and gender equality in the UK, it is encouraging to see that the gender pay gap across UK employees fell in 2022 to 14.3%, a fall of 3% over the past three years. Transparency is a key tool in tackling the gender pay gap. Back in 2017, some seven years ago, the Government introduced regulations requiring large employers to publish the differences in average salaries and bonuses for men and women. It happens to be the first piece of legislation that I took through your Lordships’ House.

These regulations have been effective, motivating employers to scrutinise their approach and improve equality in the workplace. But a key driver of the gender pay gap is lower levels of female participation in the workforce, accounting for around half the gap, which widens in the 20 years after the first child in a family is born. We know that high childcare costs present a real challenge for many women when weighing up whether or when to go back to work, and how many hours they can work when they have young children to look after.

We are dealing with this head-on through the Government’s tax-free childcare scheme for working parents. For every £8 that parents pay into their childcare accounts, the Government will add £2, up to a maximum of £2,000 in top-up per year. This applies to each child up to the age of 11. For children with disabilities, the maximum amount of government top-up is £4,000, until the child is 16.

Building on this, at the Spring Budget last year, the Government announced the biggest ever investment in childcare in England by providing eligible working parents with 30 hours of free childcare per week for 38 weeks per year. Parents can access this from when the child is nine months old until they begin school. This expansion in early years entitlement is worth an estimated £1.7 billion in the financial year 2024-25. As a result, we expect that 1.5 million mothers will increase the hours they work by 2027-28 and that around 60,000 more will enter the employment sector. At the Spring Budget this week, we confirmed that the Government are guaranteeing the hourly rate paid to childcare providers to deliver the free hours offer, which will give childcare providers the confidence to invest in expansion.

Alongside support with childcare, workplaces must offer their employees flexibility in how and when they work. Flexibility benefits women and men, but we must recognise that women still bear more of the childcare workload and face particular challenges in balancing their professional aspirations with family responsibilities. But it does not have to be this way. If we embrace adaptability in working arrangements, dismantle the rigid structures that have historically hindered women’s career progression and, in turn, offer an environment where talent, not time spent in the office sitting at a desk, is the currency of value, it will have a transformative effect on women’s inclusion.

That is why this Government have introduced the right to request flexible working from day one of an individual’s employment. This will come into force on 6 April this year and will bring around 2.6 million additional employees in scope of this entitlement. We have also passed the Employment Relations (Flexible Working) Act, which includes measures that support people who wish to discuss flexible working arrangements with their employer. These discussions are important, as we know that the extent to which flexible working is suitable will depend on both the individual’s and the business’s circumstances, so we want employers and employees to come to the arrangement that works for both parties. This will benefit fathers as well as mothers, giving them the opportunity to do their part in the home; and, more broadly, flexible working can lead to more diverse leadership, the development of innovative service and products, and more resilient organisations.

Further, we are committed to supporting pregnant women and new parents who wish to participate in the labour market. So, the Protection from Redundancy (Pregnancy and Family Leave) Act 2023 extends the existing redundancy protections that currently apply to those on maternity leave, adoption leave or shared parental leave. From 6 April, these protections will also cover the period of pregnancy and a period of time after that. This means that employers are obliged to offer a suitable alternative vacancy where one is available, giving women on maternity leave or who have recently returned from maternity leave priority over other employees who are also at risk of redundancy. This same protection applies to parents taking adoption leave or shared parental leave.

Additionally, the Government announced new measures in Wednesday’s Spring Budget to help parents balance work with looking after their children. From April, the Government will raise the threshold for the high income child benefit charge—HICBC—to £60,000, taking 170,000 families out of paying this tax charge. The Government are also raising the top of the taper at which child benefit is withdrawn to £80,000. This will reduce the marginal tax rate, which will improve people’s incentives to continue working or take up more hours. The OBR estimates that, as a result, those already working will increase their hours by a total equivalent to around 10,000 full-time individuals by 2028-29.

Beyond difficulties in entering the labour market, women can also find it more challenging to reach leadership levels in the organisations that they are part of. In 2016 the Treasury launched the Women in Finance Charter to improve female representation at senior levels with a view to improving the productivity, innovation and competitiveness of the financial services sector. More than 400 firms, employing more than 1.3 million people across the financial services sector, have signed up to the commitments of the charter, from global banks to credit unions, from leading insurance companies to new start-ups. The first wave of signatories to the charter started out with an average level of senior representation of 27%. Today, the signatory base has grown substantially and the average level of senior representation stands at 35%.

The charter’s five-year review found that the average proportion of women on UK executive committees had increased from 14% in 2016 to 22% in 2021, while the proportion of women on UK boards had increased from 23% to 32%. The increase for executive committees is nearly 60% and for boards it is nearly 40%. Average representation on boards and executive committees was higher for firms that had signed the charter— 50% higher for executive committees and 40% for boards. It is really encouraging to see that charter being emulated in other sectors, including aviation and maritime; in other countries, such as Norway, Luxembourg and Ireland; and across diversity strands, such as in the Black Talent Charter. I look forward to the charter’s next annual review report, which will be published later this month.

There is still quite a lot of work to do to continue our progress towards true gender equality and inclusion. In implementing these domestic policies and through our international leadership in putting women centre stage, the UK Government have demonstrated our unwavering commitment to women and girls around the world. I am very pleased to open this debate in your Lordships’ House, and I beg to move.