Gender Pay Gap

Baroness Afshar Excerpts

Monday 26th November 2018 Lords Chamber

[Baroness Williams of Trafford]

I agree to a certain extent with the noble Baroness. It would be interesting to see some of the figures from SMEs. Over 300 have, in fact, reported their gender pay gap even though they have not had to do so. It is important to note that the Government are not pushing against a closed door on this. Businesses want to do this and the success of employers in future will be down to the diversity of their workforces.

[Baroness Afshar (CB)]

My Lords—

[Baroness Williams of Trafford]

As the noble Baroness will know, McKinsey has estimated that bringing more diversity to the workplace—particularly women—will increase the economy by over £150 billion by 2025.

[Baroness Williams of Trafford]

In terms of monitoring progress, businesses with over 250 employees will have to do this exercise every year. I am pleased that all the businesses in scope actually reported their gender pay gap. There is clearly scope to start to disaggregate those figures by sector, and I hope that that will be where we get to at some point soon—but I think we have made a great start.

[Baroness Afshar]

My Lords, I beg the Minister’s pardon for interrupting her earlier in my misplaced enthusiasm. The change of production from “just in case” to “just in time” means that there is no continuous process. It has been fragmented into home-based production where people are employed “as and when”. This means that they cannot accumulate a background of paying regular contributions to entitle them to any kind of benefits. Is the Minister thinking of a way to deal with the new way of production that now prevails?

[Baroness Williams of Trafford]

The noble Baroness asks a very pertinent question. There can be a break in national insurance contributions for people who work and then step out of work, or who work from home. A flexible workforce is important to the future economy, but it must not disbenefit people’s pension take when they retire.