Baroness May of Maidenhead
Main Page: Baroness May of Maidenhead (Conservative - Life peer)Department Debates - View all Baroness May of Maidenhead's debates with the Home Office
(13 years, 2 months ago)
Commons ChamberYet again, we have heard a speech from the Opposition Benches that included no recognition of the economic mess that the last Government left us, no constructive suggestions and no positive policy proposals for the future of this country. That is not constructive opposition, it is shameless opportunism.
Let me remind the Opposition once more why we are having to take action to restore sanity to our public finances. They left us with the largest budget deficit in our peacetime history, and they left us spending £120 million every single day just on paying the interest on the debt that they racked up. That is more than we spend each day on policing, schools or child benefit. They left us with a deficit higher than that of Portugal or Greece, which have had to go cap in hand to the EU for a bail out. The experience of those countries shows that the risks of not dealing with Labour’s deficit are not imaginary but very real.
Does the right hon. Lady think that the Labour Government should have cut public spending in the middle of a recession, and not allowed additional support for those who were unemployed and for businesses? If so, does she think the economy would have been growing at the time of the election if that had been done?
The Labour party, and the right hon. Lady as a former Treasury Minister, knows full well the risks of failing to deal with the deficit today. That is shown not just by what we are doing, but by what the Labour party itself said it would do if it was in government. I am talking about the position that we are in today, which was left us by the Labour Government, and the actions that we are having to take to deal with it. She must recognise that if the Labour party were in government today, it would be cutting £7 for every £8 that the current Government are cutting.
The Opposition understand that the deficit must be dealt with and we want to get growth moving, but does the right hon. Lady think that that will happen if women are forced out of their jobs because they cannot pay their child care costs?
I am afraid that the hon. Lady’s claim that the Opposition understand dealing with the deficit rings false when we hear what they say the Government should do about the deficit. On the one hand, the Labour party tries to argue that what the Government are doing to address the deficit is wrong, and on the other hand Labour Members remain silent about the fact that a Labour Government would cut £7 of every £8 that this Government are cutting this year. We hear nothing from the Opposition about where those cuts would fall.
The issue for the Opposition is exactly where the cuts fall. As my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper) said, not only is the bulk of the Government’s deficit reduction programme hitting women, but women’s unemployment is increasing disproportionately compared with men’s unemployment.
In the last three months, the increase in employment for women was greater than the increase in employment for men. Opposition Members, including the hon. Lady and the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper), have said today that what the Government are doing is wrong. We hear that in debate after debate. Opposition Members stand up and tell us that the cuts in virtually every area of public sector expenditure are wrong. If they were in government, they would be making cuts. In that case, the question for them is where they would make those cuts.
Does the right hon. Lady accept that the deficit was the price we paid to avoid depression? The choice for the Government is whether to make deep and savage cuts that will stop growth, and to increase VAT, which will stoke inflation, or to focus on growth and make more balanced savings over time, and, obviously, to make the bankers pay their fair share. In the case of the police, the Opposition would cut 12% rather than 20%. That is a more balanced approach that would not undermine growth or increase the deficit in the process.
The premise on which the hon. Gentleman began his intervention was incorrect, because he failed to recognise that we are dealing with a structural deficit. This is not about the world recession, but about the structural deficit that was built up by the previous Labour Government.
Order. We must remember that this is a debate about women. We do not want to go too far talking about the deficit. I know that the two tie in, but we are in danger of having a deficit debate rather than ensuring that the women’s debate is heard.
The Institute for Fiscal Studies has shown that something like a third of the deficit was excess investment—
Thank you, Mr Deputy Speaker. Answer came there none to my challenge to the hon. Gentleman.
The Government’s action is taking Britain out of the danger zone, but we are also taking action to deal with Labour’s record deficit in a way that protects the most vulnerable, whether they are men, women or children. We have therefore had to take some difficult decisions on public spending, but in a way that has allowed us to protect the public service on which women most rely—we are increasing spending on the NHS in real terms every year. The Opposition cannot say that they would do that, because they would cut spending on the NHS.
Yes, we have had to implement a public sector pay freeze, but that has allowed us to protect against more public sector job losses. Even as we implement the pay freeze, we are protecting the lowest-paid public sector workers, almost two thirds of whom are women. Again, the Opposition cannot say that they would do that.
Yes, the Government have had to make tax changes, but as we have done so we are lifting 880,000 of the lowest-paid workers out of income tax altogether, the majority of whom are women. That was opposed by the Labour party, which is surprising given that it claims to be committed to redistribution.
I shall make some progress.
Yes, the Government have taken the difficult decision to remove tax credits from higher earning families, but that has meant that we can increase child tax credits for the poorest families, protecting against increases in child poverty. In fact, that decision has meant that we can increase child tax credits by £180 and then £110 a year over and above the level promised by Labour. Those policies are not just about helping women, but about protecting the most vulnerable.
The right hon. Lady said that the increase in tax allowances helps women. In fact, the figures produced by the House of Commons Library show that the increase in the tax allowance benefited 13,500 women and 16,800 men. Even what she did to benefit households benefited more men than women. In addition, her cuts—in child tax credits, child benefit and so on—all came from women. That is the point. She is taking far more from women, but when she gives some back, she gives more back to men.
It is absolutely clear that the majority of the lowest-paid workers are women, as are the majority of workers who were taken out of tax. The right hon. Lady refers again to the House of Commons Library figures—she keeps quoting them—but they were produced on a remit that she gave to the Library. Interestingly, she earlier spoke of the distribution and sharing of incomes within households. However, the assumptions on benefits made in the figures that she quotes go against what she was saying about what happens within families.
For the first time, people will have the information to judge for themselves whether they think the Government’s decisions are fair. We have been making some difficult decisions, but for the first time the Government published an overview of the impact of the spending review on groups that are protected by equalities legislation, including women. The analysis demonstrated that our decisions mean that services used by women are protected. With our Budgets in 2010 and this year, and with the spending review, we published unprecedented distributional analysis of our proposals, as the IFS has acknowledged. Such analyses were never published by the previous Government. Perhaps if they had thought to publish such information, they would have avoided policies that hit some of the poorest the hardest, such as scrapping the 10p tax rate, which my hon. Friend the Member for Devizes (Claire Perry) mentioned.
I reject the Opposition notion that we can judge the value of a policy simply by looking at the number of men or women who are affected by it. We should not reduce the amount that we invest in tackling youth unemployment just because more young men than young women are unemployed, but that is exactly what the Opposition’s analysis suggests we should do. They say that spending on tackling youth unemployment would be unfair on women.
We should not stop investment in policies that will return Britain to growth, such as cutting corporation tax, because more men run companies than women. However, again that is exactly what the Opposition’s analysis suggests we should do. I reject that argument. We need to ensure that more women can start businesses as we invest in getting Britain’s economy going. In fact, one symptom of the inequality between men and women is that more women than men rely on state spending.
We need to continue to support all women who need it, which is why we have ensured that we have protected child benefit and tax credits for women on low incomes, and why we will increase the value of the state pension, and protect benefits such as the winter fuel allowance and free bus passes for older women. However, if the previous Government taught us one thing, it is that more state spending might help to deal with the symptoms of inequality, but it does not address the causes. This Government are determined to get to grips with the causes of inequality between men and women, from job opportunities to the number of women in top, senior positions, to tackling the shameful levels of violence against women, and working to reverse the commercialisation and sexualisation of childhood.
The Home Secretary will know that some of the key causes of inequality come into play during the very earliest years of a child’s life. Can she explain why her Government are cutting £5 million from the early intervention grant in Leicester, which covers children’s centres and Sure Start, which are crucial to giving all children the very best start in life?
We agree that early intervention is very important and, as the hon. Lady will know, the hon. Member for Nottingham North (Mr Allen) produced a very significant report for the Government on the whole issue of early intervention. The Government are ensuring that, within the early intervention budget, there is sufficient funding to provide for a network of Sure Start centres. We are also ensuring—as we are in other areas, as I have mentioned in terms of focusing what the Government spend on the most vulnerable and those most in need—that Sure Start is returned to the early focus it was intended to have by the last Labour Government, which was helping those who are most in need, those on the lowest incomes and those who most need access to the sort of provision that Sure Start and children’s centres can provide.
I want the Government to take a new, more mature approach to engaging with women. I want to see women’s voices in government strengthened. That is why we launched a consultation on how the Government listen to and engage with women, which has already received nearly 900 responses. In today’s world, we need to make full use of communications technology, social media and other techniques to allow us to talk to women directly.
The Government are focused on giving opportunities to women. We need to move beyond just protection from discrimination and help women to get on in modern businesses and modern workplaces. Many women have benefited from the introduction of the right to request flexible working for parents and carers, but by restricting flexible working to certain groups, the idea was perpetuated that this is some sort of special treatment. We will therefore extend the right to request flexible working to all employees. This will not only shift attitudes, but will help to shift behaviour away from the traditional 9-to-5 model of work that can act as a barrier to many women and that also does not make sense for many modern businesses.
Another stereotype we need to shift is the idea that women should do the caring and men should earn the money when a couple decide to start a family. Our policy to introduce a new system of flexible parental leave will make a real difference to working women who want to have children. For the first time, it will allow both parents to choose what is right for them and what is right for their family. If fathers want to take more of a role, they can. If mothers want to return to work earlier, they can. If parents want some time at home together after the birth of their child, they can have it. What matters is that they will have a choice.
I agree with the Home Secretary that we want to maximise people’s choices, but she must be aware that most non-resident parents are men and most parents with care are women, and that the latter have lower incomes. How can she justify putting a charge on those parents with care when the non-resident parent is not paying up on child maintenance?
As the hon. Lady knows, we have had a consultation on how we deal with the child maintenance issue. I hope that she would agree that despite the efforts of both Conservative and Labour persuasions over several years, we have not got the child maintenance system right in this country. There are too many people who do not see the absent parent paying child maintenance and we need to do everything we can to get a system that will work. As she will know, the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Basingstoke (Maria Miller), is looking at this issue and the alternatives available under the child maintenance proposals.
As well as giving all women better opportunities in the workplace, we need to do more to help those who aspire to the very top. Last year, only 12.5 % of all FTSE 100 board members were women. That is simply not good enough, and that is why the Government commissioned Lord Davies to look at how we can increase the number of women on company boards. We have made good progress in implementing Lord Davies’ recommendations. In May, the Financial Reporting Council launched a consultation on changes to the UK corporate governance code in order to help to achieve more diverse and more effective boards. The head-hunting industry has agreed a voluntary code on diversity, and we are building a strong sense of ownership and action in FTSE 100 companies. We have agreed with them a plan for how company aspirational targets should be published by September.
The latest figures suggest there has already been an improvement in FTSE 100 companies, just by our shining a light on this area. Some 31% of new board members appointed since Lord Davies’ report have been women, up from just 13% last year, and the number of male-only boards has dropped from 21 in October to 14.
We are also helping women to break through the glass ceiling by providing an all-age careers service. The new service will be fully operational by next April, and will provide high quality, professional careers guidance that will be open to all young people and adults. That will help women to make the right choices for themselves and for their careers. For the lowest paid, we will raise the minimum wage to £6.08—two thirds of those on the minimum wage are women.
In other areas we are also making the right decisions to help the most vulnerable. On pensions, again we have had to make some difficult decisions. Yes, we have proposed accelerating the rate at which the state pension age for women becomes the same as the state pension age for men. With life expectancy rising—and one in nine women pensioners is now expected to live to more than 100—and with the overwhelming need to reduce the deficit, this was a decision we could not duck. But it means that at the same time we have been able to commit to a triple guarantee, which will increase the basic state pension by earnings, prices or by 2.5%, whichever is highest.
The right hon. Member for Normanton, Pontefract and Castleford claimed that the earnings link had been restored by the Turner report. Of course the Turner review referred to the earnings link, but the last Government did not restore it. This Government have restored the earnings link and gone further with the triple guarantee.
Do I take it from what the Home Secretary says that the reason for the acceleration of the state pension age to 66 by 2020 is that the Government can pay for the triple lock on today’s pensions? It cannot be about deficit reduction because it comes after the deficit is supposed to have been abolished.
In fact, by the end of the comprehensive spending review period we will still have a debt of £1.4 trillion, which is three times the debt in 2006-07, so we will still need to look carefully at our public sector finances. It is this Government who have introduced that triple lock on pensions that will benefit today’s pensioners. For too long under the previous Government, older women had to rely on means-tested benefits, with many not claiming their entitlements at all. Our triple guarantee will help to improve the value of the state pension, giving real security and a decent income for all women pensioners. Although women will experience the rise in the state pension age more quickly than previously planned, they will still draw the state pension for an average of 23 years.
To be clear, is the Home Secretary agreeing that the triple lock will be paid for by the 500,000 women who will have to wait longer for their state pension in order to reduce Government debt? That returns us to the essence of this debate—why should women bear a higher proportion of reducing the deficit than men?
It is not the case that there is a simple link between the acceleration of women’s pension age and the expenditure on the triple lock. What is happening with pensions is more complex. Two things are happening in relation to the state pension age. The first is the overall acceleration for men and women, raising the age of state pension entitlement. That will bring in significant sums of money and is a reflection not only of Government finance issues but of increased longevity. When the state pension was first introduced, people lived for a very short period, comparatively speaking—a matter of two to five years—beyond their retirement. Today, people live for a significant length of time beyond their retirement. The Government therefore need to raise the state pension age, as has been recognised by previous Governments—the initial decisions to accelerate the rise and raise the state pension age were taken by previous Governments. We have had to take these difficult decisions. As I said, however, although women will experience the rise more quickly than previously planned, they will still draw the pension for an average of 23 years.
I am sure that my right hon. Friend is aware of this point, but in the proposals for 2016 and thereafter will we not be addressing the long-standing problem of women who have taken career breaks being ineligible for a state pension, which is a travesty that we should have sorted out before? Under the proposals we will bring forward, there will be much more parity in that area.
My hon. Friend makes an important point that I was about to deal with. In the longer term, we want to take reforms even further. The state pension Green Paper proposed a single-tier state pension combining the state pension and the state second pension to provide an estimated £140 per week, which would be of particular benefit to women who have had to take time out of the labour market because of their caring responsibilities. The coalition Government are not just talking about this—we have actually made proposals to help women in this regard.
On health, we are pursuing policies that give real help to women. We have stuck to our promise to increase health spending in real terms; we are sticking to our coalition agreement commitment to increase the number of health visitors by 4,200 by 2015; and we are making available £400 million over the next four years to support breaks for all those hard-working carers, many of whom are women.
I have made it absolutely clear, as has my hon. Friend the Minister for Equalities, that tackling violence against women and girls is one of my top priorities, which is why in March we published an action plan to tackle the problem; it is why we have provided more than £28 million of stable Home Office funding until 2015 for local specialist services; it is why we have provided £900,000 until 2015 to support national helplines; and it is why for the first time we have put funding for rape crisis centres on a stable footing. We will provide more than £10 million over three years to support their work, and we will open new centres where there are gaps in provision. This should not be a party political issue. It is about helping the 1 million women who suffer domestic abuse each year; the 300,000 women who are sexually assaulted; and the 60,000 women who are raped. As the right hon. Member for Normanton, Pontefract and Castleford said, one in four women will experience domestic abuse in their lifetime, and that will often be accompanied by years of psychological abuse. That is why the Government take violence against women and girls so seriously.
We will only change damaging behaviour, however, after we have changed the underlying attitudes that cause that behaviour. Those attitudes are fundamentally affected by the culture and society in which children grow up. We share the concern of many parents that children are now being exposed to sexualised images and an increasingly sexualised culture from an early age, which is why we commissioned Reg Bailey, the chief executive of the Mothers’ Union, to lead an independent review of the commercialisation and sexualisation of childhood. He has listened to parents’ concerns about explicit music videos, outdoor adverts and the increasing amount of sexual content in family programming on television.
Reg Bailey’s recommendations call on businesses and broadcasters to play their part, and they include putting age restrictions on music videos, covering up explicit images on the front pages of magazines and newspapers and restricting outdoor adverts near schools, nurseries and playgrounds. He also recommends that retailers sign up to a code of practice that checks and challenges the design, display and marketing of clothes, products and services for children. There has been a great deal of goodwill from the broadcast, retail and advertising industries throughout this review. They know that family-friendly practices make good business sense, and the Government will now look to work with business to implement the review’s proposals.
As well as helping women in this country, we are doing more than ever before to help women overseas. We are putting women at the heart of our international development policies, because in development there are few better options than investing in women. In Ivory Coast, for example, an increase of just $10 in women’s income achieves the same nutritional and health outcomes for children as an increase of $110 in men’s income. On international women’s day, the Department for International Development published its new strategic vision for girls and women. It sets out that, by 2015, our international development work will have saved the lives of at least 50,000 women in pregnancy and childbirth and 250,000 newborn babies; will have allowed at least 10 million women to access modern methods of family planning; will have supported more than 9 million children in primary education, of whom at least half will be girls, and 700,000 girls in secondary education; and will have helped 2.3 million women to access jobs and 18 million women to access financial services.
The majority of part-time students studying for first degrees are women. Ten years ago I graduated as a mature part-time student—and I was pleased to note then that the majority of students were women. However, will my right hon. Friend confirm the Government’s decision to extend loan support to part-time students, which will give women the opportunity to advance their careers through further education?
I commend my hon. Friend on his experience and how he got his qualification—I am choosing my words carefully, given what he said about the number of females on the course. However, it is important that we support part-time study, because it is an option that people are increasingly considering. The extra support that we have provided and the way we have dealt with the issue are important steps forward. As he said, such support will have a particularly significant impact on women, given that many part-time students are women.
On students, women in my constituency often tell me about the need for good English language schools. The Home Secretary will know that the co-financing proposals for speakers of other languages will affect women disproportionately— 74% of those affected by the proposals will be women. What conversations has she had with the relevant Minister about that issue?
I have had a number of conversations over time with the relevant Minister on the issue of English language schools and colleges.
I wish to finish the point about tackling violence against women and girls overseas. My hon. Friend the Minister for Equalities has also been appointed as our overseas champion for tackling violence against women and girls. We have a moral duty to act to support women around the world.
The Opposition’s record on women speaks for itself. They left government with 1 million women unemployed and 200,000 more women unemployed than when they came to power—and that is without even mentioning the deficit. We are sorting out their mess and protecting the most vulnerable, even as we deal with Labour’s deficit, and we are giving women the opportunities they need to be successful: flexible parental leave; more women on boards; careers advice for all; flexible working extended; NHS spending protected; resources for violence against women defended; international development spending centred on women; low-paid people taken out of income tax; pay rises for low-paid public sector workers; child tax credits higher than under Labour; a triple guarantee on pensions; and the minimum wage up. Which of these policies do the Opposition disagree with? Where is their plan to deal with the deficit, to sort out the public finances, and to get Britain back up off its knees? They have no policies that would benefit women, no positive ideas, nothing to say to protect the most vulnerable, and therefore no credibility. All they offer is empty opposition, and that is why their motion deserves to fail.