Women and the Cost of Living

Debate between Harriett Baldwin and Tom Blenkinsop

Tuesday 19th November 2013 Commons Chamber

[Tom Blenkinsop]

I cannot agree with that at all. The structural imbalance—I assume that the hon. Gentleman is referring to the staple industries in the north-east—has had a long-term effect primarily because of his party’s record in the north-east of decimating heavy industry back in the ’80s and ’90s. The increase in female unemployment is unprecedented. I have never before seen these levels of female unemployment. Previously, we had long-term male unemployment in my region. That was difficult, but families still had a working mother. Now, these families have unemployed mothers and fathers, meaning far more significant long-term consequences for my area. That is what I am frightened about.

There is a big gender split in apprenticeships, because young women take a much narrower range of apprenticeships than young men, yet there remains a skill shortage in these new industries. It seems only logical, then, that all the stops should be pulled out to encourage young women seriously to consider these industries as a career. Increasing the number of women working—or at least taking up apprenticeships—in these male-dominated industries would go a long way to stem the flow from short-term to long-term unemployment. We must challenge the stereotypes in careers advice for young women and encourage more girls to take up higher skilled apprenticeships, but that has been made increasingly difficult by a Government who have undermined careers services. One of the Government’s first decisions was to get rid of Connexions, which was a careers advice service in schools giving children guidance on career paths.

On equal pay, the gender pay gap stands at 15%, unchanged on the year before. We know that the reasons for the persistent gap are varied and complex, ranging from occupational segregation to a lack of well-paid part-time work and, even in this day and age, discrimination in the workplace.

In August, the Chartered Management Institute found that women who have reached management positions can expect to earn only three quarters of the pay of their male colleagues. Even more staggering was the finding that the more highly skilled and highly paid the profession, the greater the gap between men and women’s pay. In modern Britain, undervaluing the talents and skills of women is a loss to the whole economy, so the issue of equal pay is a tough nut that needs to be cracked.

Several actions could be taken to help that situation. For example, the introduction of mandatory pay reporting, including the Equality Act 2010, would highlight the differences between what businesses pay their male and females colleagues. We should improve the law on flexible working and do more to encourage businesses to utilise flexible working practices. However, the revelation that up to 50,000 women a year could be losing their jobs while on maternity leave is a shocking one, yet far from doing anything about it, Ministers are making it worse by charging women £1,200 for challenging discrimination at an employment tribunal.

To address the specific barriers that single mothers face, we Labour Members will support women who have to juggle work and child care by restoring breakfast and after-school clubs in primary schools from 6 am to 8 pm for every child, and provide 25 hours of free child care for three and four-year-olds of working parents. Those are simple actions that the Government should seriously consider.

My final point is on the broader issue of the cost of living crisis that women currently face. As we all know, women are struggling as prices continue to rise faster than wages, and the latest figures show that working people are on average £1,600 a year worse off since May 2010.

The Government’s change to the tax credits rules means thousands of families will have lost out on their working tax credits unless they have been able to increase their working hours significantly. Any woman or any couple earning less than about £17,700 will need to increase the number of hours they work from a minimum of 16 to 24 a week—otherwise, they will lose working tax credits of about £3,500 a year. According to the House of Commons Library, this has hit 212,000 low-income families.

Of course, the situation was supposed to have been compensated for by the March 2012 Budget’s introduction of universal credit that was to come into force last month. To a certain extent, it would have restored families to a parity with what was seen with working tax credits under Labour. Due to the ongoing chaos in the Department for Work and Pensions, that has not happened. Some of my hon. Friends have mentioned the Tory Free Enterprise Group and its proposals to increase the price of food and children’s clothes by 15%.

[Harriett Baldwin]

Will the hon. Gentleman give way?

[Tom Blenkinsop]

No.

This group of 42 Tory MPs sees it as necessary to raise VAT on gas and electricity to 15%, which would add £120 to the average energy bill. Let me remind the House that when the Prime Minister was an adviser to the Chancellor of the Exchequer under the previous Conservative Government, he advised that Chancellor to bring in VAT on fuel. He also advised that Chancellor to bring in air passenger duty and the fuel duty escalator. VAT has risen under every Conservative Government since it was introduced—another fact for Government Members to ponder. That is an illustration of the Tory addiction to indirect taxation.

For women, there is an even harsher reality. There is an increasing financial burden on women with many, particularly over 40-year-olds, prioritising supporting their children over building up a pension pot. Many have to find the money for family caring responsibilities or to pay off debts. Disproportionately stuck on pay below the living wage rate, 27% of women are not paid the living wage, compared with 16% of men. This gap is especially distressing now that mothers are either the breadwinners or co-breadwinners for their families in many households.

The future is not too bright either. Research by insurance firm, Scottish Widows found that only 40% of women put enough money aside for an “adequate” retirement—down from 50% two years ago, and the lowest amount since the number started to be tracked under Labour in 2006. On average, women who are saving are putting aside £182 each month, compared with £260 for men—a pensions “gender gap” of £1,000 in contributions each year. The continued squeeze on the cost of living has made it much harder for many women not only to live an adequate and healthy lifestyle now, but to consider saving for their future and retirement. The gender pay gap, the opportunity gap and the oncoming pensions gap have played a significant part in explaining why it is imperative to bridge those gaps sooner rather than later.