Gender Pay Gap

Baroness Harman Excerpts

Wednesday 18th April 2018 Commons Chamber

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

(Urgent Question): To ask the Minister for Women if she will make a statement about Government action to close the gender pay gap.

[The Minister for Women (Victoria Atkins)]

May I say that it is a pleasure to answer this urgent question from the right hon. and learned Member for Camberwell and Peckham (Ms Harman)? It is unacceptable that in 2018 there are still differences in how men and women are paid in business and in industries. That is why this Government introduced new regulations, which came into force in 2017, requiring all employers with 250 or more employees to report their gender pay gap. I am delighted that as of yesterday 10,055 employers, covering all sectors of the economy, have reported their gender pay gap. These new regulations have shone a light on the injustice that has existed for too long and created a new conversation on the need for a step change in gender equality. We are now working with employers to support them to take action to close the gender pay gap; we are building our research base on what works, to drive real change; and we will be supporting employers to understand what has caused their own gender pay gap and what they can do to make a real difference.

We want employers and employees to succeed in driving real change. The Government have launched a range of initiatives that will help. We introduced shared parental leave to enable working parents to share childcare in the first year of their child’s life, and we have extended the right to request flexible working. We have introduced a new £500 million fund to support women and men who have been out of the labour market for a long period to return to work, and we have doubled the early education provision, so that all three and four-year-olds from working households in England can access 30 hours’ childcare a week.

I am pleased that the majority of employers have published action plans, alongside their reporting, to set out what they will do to tackle the gender pay gap in their business or sector. I look forward to hearing more about the ongoing work in this area and the work done to address this great inequality, but there is more to this issue than just the regulations. It is about driving cultural change. From the subjects that girls choose to study at school and university to the expectations of women who are climbing their own career ladder, we want the message to women and girls to be, “We will support and encourage you to achieve your full potential.”

[Ms Harman]

Thank you, Mr Speaker, for granting this urgent question, and I thank the Minister for her obvious commitment to this issue. It was Labour legislation that enacted gender pay transparency, but it was her Government who implemented it. It is important that they did that, because it has laid bare what women have always known but previously did not have proof of, which is that there is systematic pay discrimination. It is now clear: eight out of 10 employers pay men more than they pay women—and that is across every sector, including the retail sector, which would not exist without women’s work. Why on earth should women in Tesco put up with £8 an hour on the checkout when men in the stores get up to £11.50 an hour?

Although it pains me to say this, the trade unions that need to be part of the negotiations to narrow the pay gap need to get their house in order. How can women members of Unite believe that that union will champion their rights to equal pay if there is a 30% pay gap in the union itself? The NASUWT, a teachers union, pays its male staff 40% more than it pays women, so it too has to take action. As for the public sector, let us look at the University of Liverpool. Its public policy is to narrow the pay gap, but the University of Liverpool pays men 90% more in bonuses than it pays women. That has to stop.

Does the Minister agree that we are no longer interested in rationalisations, explanations or justifications? The time for excuses has passed. We want stretching targets year on year to narrow the gap. Will she join me in congratulating the women in the House who have spoken up on this issue, such as my hon. Friend the Member for Walthamstow (Stella Creasy), among many others, including the Chair of the Women and Equalities Committee, the right hon. Member for Basingstoke (Mrs Miller), and Labour’s Front-Bench team, who have been pushing on this issue? Will she congratulate all the women outside the House who have been pushing on this, not least women in trade unions and the BBC women?

May I give the Minister some sisterly advice on what she should do to really focus on this issue? First, she should stay on the back of the Equality and Human Rights Commission and make sure that it uses all its powers and has the resources to take action. Secondly, she should suggest to the Prime Minister that she has a Cabinet session on the gender pay gap, with all Secretaries of State required to come to Cabinet and say what stretching targets they are going to impose in their Departments and the sectors for which they are responsible. Thirdly, she should commandeer Downing Street for a summit at which business and trade unions can tell her what they are going to do to narrow the pay gap. If she does all that, she will have a great opportunity and a great responsibility, because if she drives forward on narrowing the pay gap, that is not only fair and just but the most important thing to help low-income families and tackle child poverty.

[Victoria Atkins]

I said at the beginning of my statement that I was extremely grateful to the right hon. and learned Lady for raising this issue in an urgent question, and I meant it. I fully recognise and thank her for the work that she did in government to introduce legislation on the gender pay gap. Like her, I thank other female Members, including the Chair of the Women and Equalities Committee, my right hon. Friend the Member for Basingstoke (Mrs Miller), who, along with her colleagues on the Committee, does so much to drive through change. I thank female Members from all parties. There is a real sense of urgency and impatience about this issue. For what it is worth, my right hon. Friends the Home Secretary and the Prime Minister share our impatience—I hope I do not regret that word—to have this matter sorted.

I must of course pay tribute to the right hon. and learned Lady for all the work she does to try to ensure that this place is a little more understanding and accommodating of a diversity of backgrounds, for Members and our staff. I very much take on her advice, although I worry that I might be stepping a bit above my station if I commandeered Downing Street for the summit she suggested—