Women (Government Policies)

Debate between Baroness May of Maidenhead and Anne Begg

Wednesday 8th June 2011 Commons Chamber

[Mrs May]

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.

[Dame Anne Begg]

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.

[Mrs May]

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.

[Dame Anne Begg]

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?

[Mrs May]

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.

Oral Answers to Questions

Debate between Baroness May of Maidenhead and Anne Begg

Monday 9th May 2011 Commons Chamber

[Mrs May]

Yes, I am very happy to join my hon. Friend and, I am sure, others across the House in recognising the valuable work that the special constabulary undertakes. Indeed, we would like to encourage more people to become specials, because they perform a very important role in policing their communities.

[Dame Anne Begg (Aberdeen South) (Lab)]

Now that Aberdeen passport office has closed, my constituents face a long journey for a face-to-face interview about their first passport. They are expected to travel to Dundee, 70 miles away, but, because of the extra work caused by the closure of other offices throughout north-east Scotland, they have now been told that they will have to go either to Edinburgh or even to Newcastle. It appears that the alternative arrangements that the Government promised have not been put in place, so will the Minister look at the issue to make sure that they are put in place and it is not impossible for my constituents to get a passport?

Oral Answers to Questions

Debate between Baroness May of Maidenhead and Anne Begg

Thursday 28th October 2010 Commons Chamber

[Mrs May]

I had the opportunity of meeting four of the women who were campaigners in Dagenham, and they are as feisty today as they were 40 years ago. We need to address several issues when considering the gender pay gap. It is appalling that we still have such a gap 40 years later, but it is not simply about a legislative approach. Extending the right to request flexible working to all, introducing flexible parental leave and encouraging a wider range of choices in career options, especially for girls and young women, will all play their part in ending the gender pay gap.

[Miss Anne Begg (Aberdeen South) (Lab)]

I represent an area with the widest gender pay gap, where women earn only two thirds as much as men. I am especially concerned about the effects of the comprehensive spending review, including the number of women who will be made unemployed by the decisions taken and the cuts to housing benefit. What will the Government do about the gender income gap, not just the gender pay gap?

[Mrs May]

The hon. Lady raises the issue of the comprehensive spending review. Of course, we have had to introduce these measures as a result of decisions taken by the last Labour Government, which she supported, which have left this country in a parlous financial condition and meant that we have had to address this significant deficit. As a Government, we have been looking at equality impact assessments of the decisions in the spending review. It is interesting to note that when the Opposition spokeswoman on these matters was Chief Secretary to the Treasury, the then Labour Government did precisely zero equality impact assessments. They made no proper assessment of the equality impact of their decisions.