Employment Rights Bill (Fourth sitting) Debate

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Department: Department for Business and Trade
Sarah Gibson Portrait Sarah Gibson
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Q Do you think that the measures in the Bill go anywhere in the way of supporting those with family or carer responsibilities?

Dr Stephenson: Obviously, the provisions about paternity and parental leave as a day one right will benefit those with caring responsibilities. We are pleased to see that there are plans to review carers’ entitlement. The problem with leave for carers is that it is one of the lowest-paid benefits that we have in the UK. Very many carers end up in poverty as a result. We know that there are higher rates of physical and mental health problems among carers because of the poverty, the strains caused by caring and the difficulties of balancing caring work with paid work. Obviously, the flexible work provisions will go a long way to helping people with caring responsibilities, and we think that is a very good thing.

Alex McIntyre Portrait Alex McIntyre (Gloucester) (Lab)
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Q One of our previous witnesses, Luke Johnson, said that one thing that he thought was bad for business in the Bill was increasing access to paternity leave. Mr Johnson publicly backed the now Leader of the Opposition in her leadership campaign, and she of course said that maternity pay had gone too far. Do you think, in reflecting on your evidence, that those comments belong to the 1950s, and do you see the benefits for both business and workers in protecting mums and dads in the workplace?

Dr Stephenson: Yes. What we know is that at every point at which women’s rights have been improved in the labour market—the Equal Pay Act 1970, the Sex Discrimination Act 1975 and the introduction of the national minimum wage, where women were the majority of those who benefited—there have always been some people who have said, “This will be disastrous for business and will lead us to stop employing women,” but that has not actually happened. The proportion of women in the labour market has gone up, and businesses have benefited from having an increased number of women in the labour market.

I think that what is proposed around paternity and parental leave is relatively minimal, compared with what is available in a number of other European countries, for example. I do not think that this will be disastrous for business. I do think that if we want women to be able to survive and thrive in the labour market, we have to redress the balance where women of child-bearing age are seen as much more of a risk for employers than men are. We know that in the long term we will all benefit from legislation that makes things better for parents and makes it easier for people to have children and to raise a family, because one of the crises that we are facing on a global scale is a falling birth rate. A society where there are not enough young people to work and pay the taxes that will support those of us here today when we are in our old age and to care for us when we are old is a society that is in trouble. Part of doing this is improving rights for parents when they have small children, so that people have the children they want to have, rather than thinking, “We can’t afford to do this.”

Anneliese Midgley Portrait Anneliese Midgley
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Q I want to follow on from the last question. A previous witness today said, “I think, if you introduce lots of rights like paternity rights and flexible working rights from day one, you risk having more problems and that will be a cost.” I just want to go a bit deeper into your assessment of that and whether you think family leave and flexible working should be viewed as a net cost.

Dr Stephenson: I am also an employer, and we have an incredibly flexible working policy. I think flexible work is largely beneficial for employers as well as workers, not least because it enables you to recruit and retain the best staff. At the moment, the labour market is relatively tight, particularly in some parts of the country and in some sectors. We have higher levels of, for example, economic inactivity among women than men and we know that this is something the Government want to do something about.

One of the reasons for economic inactivity among women is caring responsibilities. There are large numbers of women who are not in the labour market who said that they would like to be in paid work if they could find a job that gave them the flexibility they needed. That can only be a benefit to wider society, and ultimately to employers, first, because they can attract the best people and, secondly, because we are more likely to have a strong and growing economy.