Women (Global Economy)

Baroness Featherstone Excerpts

Tuesday 26th June 2012 Westminster Hall

[The Minister for Equalities (Lynne Featherstone)]

It is a pleasure to serve under your chairmanship, Mr Turner. I hugely congratulate the hon. Member for Wirral West (Esther McVey) on securing this important debate and making one of the most exceptional, wide-ranging and well-researched speeches on the issue that I have heard.

We all know that the UK, European and world economies continue to face significant challenges. In these tough times, Governments and companies around the globe are looking for every available competitive advantage. This Government believe that in doing so, we must utilise fully women’s skills and potential. It is a no-brainer, really; it is obvious. It makes sense: it is good for women, for our economy and for British business. We will create a more competitive economy and a more equal society.

I congratulate all who have taken part in this debate. Significant contributions were made by almost all the Members who have taken part. The hon. Member for Wirral West mentioned role models and global leaders. Aung San Suu Kyi and others have been significant in raising our eyes to the magnificence that is possible. There is something exceptionally wonderful about someone of the size and shape of Aung San Suu Kyi standing against the military might of Burma. The contrast was incredibly effective, and we were all moved listening to her.

While I am praising famous women, I mention Hillary Clinton, who has done magnificently in her role as Secretary of State, as a good example of someone who has raised the profile of women. So are the women who stood shoulder to shoulder in Egypt during the revolution. We now wait with bated breath to see whether they will secure the political rights and freedoms that should go with such a change.

I am proud that this Government have placed women and children at the heart of our international development policy with a strategic vision for girls and women, which highlights the importance of economic empowerment, for example, and sets ambitious targets for developing countries to reach by 2014 in order to help 18 million women access financial services and 4.5 million to strengthen their property rights. Hon. Members are right that we in the United Kingdom have much in common with our sisters around the world who, wherever they are on the spectrum, tend not to be on an equal footing.

Interestingly, the hon. Member for Wirral West mentioned image and gender stereotyping. It drives me mad that we are always represented as either servile or sexual. The Government are doing a great deal of work on that. Although some say that that is the nanny state, I say that it is essential that the Government take a stand on the sexualisation of children and the conformity imposed on us by singular images and gender stereotyping.

My hon. Friend the Member for Broxtowe (Anna Soubry) discussed how, when she was younger and planning to be a lawyer, she was almost forced into the family law division, but resisted. Things have changed in law, which is fantastic, but unfortunately, in many other areas, they have not. The career choices made by school leavers have huge economic consequences. As my hon. Friend said, if someone chooses to be a beautician or a hairdresser, that is absolutely fine, but they should recognise that it is an economic choice. If they choose a higher-paying career, their choices in life will be very different. That is an important issue in our action on careers.

The new national careers service will encourage girls and women to challenge stereotypes by giving the broadest options. It will provide information on a wide range of opportunities, such as studying science and maths, for example, which were mentioned by the hon. Member for Stretford and Urmston (Kate Green). She also mentioned STEM subjects. A recently announced funding programme, in which the Department for Business, Innovation and Skills will work with the Royal Society, will focus on increasing diversity in the scientific work force. Over four years, a total of £700,000 will be invested in work to overcome the barriers to girls studying STEM subjects and entering related industries. That is incredibly important. Early choices are hard to make up for later.

I will mention the hon. Member for Shipley (Philip Davies) only briefly, as he is not here. I must cast aspersions on the idea that men get there on merit alone. Often, men get there just because they have been there all the way.

On enterprise, as we have heard, if we want our economy to grow, it is vital that we support more women to set up and grow their own businesses. Last week, we published details about the army of women who are backing us to boost business. The Government have provided funding for 15,000 mentors to support those setting up and growing their own business. The hon. Member for Wirral West has said how many more businesses we would have if more women began start-ups. I am pleased to announce that, as of last week, more than 12,000 mentors have registered, 40% of whom—almost 5,000—are women. I was fortunate, because my mother had her own business, so when I needed help to set up my design business, I could ring her to ask how to do a business plan, a VAT return and so on. It was easy and, in a sense, the business mentors are like mothers or fathers who can give people personal advice that they may otherwise feel inhibited about requesting.

On women in rural enterprise, we have published details of a £2 million programme to help female entrepreneurs in rural areas—there is a specific difficulty in such areas—to start or grow their own businesses. We have set up the women’s business council, which is chaired by Ruby McGregor-Smith, the chief executive officer of the FTSE 250 company Mitie. She was named business leader of the year at the Orange national business awards in 2011 and leads a prestigious group of UK business people drawn from a wide range of sectors. Over the coming months, the council will examine the full range of issues affecting women’s economic participation in education, work and entrepreneurship, both from the perspective of women and the choices they face and, importantly, from the perspective of business. The issue of women’s lives, which are complex, has been raised, and at its next meeting the council will consider issues relating to women’s economic participation with regard to three key life stages. Following its deliberation, the council will consider its conclusions and produce its final report, which will outline a series of practical steps that Government, business and individuals can take to support women and the economy. The report will be presented to Ministers next spring.

On work, I do not know about the two remaining Members—the hon. Members for Wirral West and for Stretford and Urmston—but I have children, and negotiating responsibilities is very difficult. I have to do a lot of planning and be very good at multi-tasking, organising and responding to unexpected last-minute events. It can be done, but nevertheless the introduction of the right to request flexible working for all, as well as shared parental leave will address some of those very difficult issues. Many of our most forward-thinking employers already understand that. Although the hon. Member for Shipley said that small businesses have difficulties, it is actually the case that businesses such as mine—I had one with four members of staff—go to the ends of the earth to be flexible for their staff. Arranging work around the familial needs of a good member of staff benefits businesses in the long run. They need to invest in the good employees who work for them—they will give back more than they could ever give them. That is an important development.

The hon. Gentleman also said that businesses look at women of child-bearing age and say, “I’m not going to employ her, because she may go off and have a baby,” but shared parental leave will mean that employers will no longer to be able to say with any certainty whether it is the man or woman who has applied for a job who will take that leave when they have children. Frankly, when I had children, men were involved in the process.

Last week, the Government announced that they will establish a new commission to look at the costs of child care, which is one of the biggest issues that women face across the board. The cost of child care is huge. I spent all my money on child care when my children were young and I was working. The new commission will be led by Ministers from the Department for Work and Pensions and the Department for Education. We realise the huge costs and the bearing they have on women and their families.

On top of that, as has been mentioned, we are supporting child-care costs to families who work less than 16 hours a week, by providing an extra £300 million for child-care support under universal credit. Eighty thousand more families with children will be able to work the hours that they choose. We have increased free early education to 15 hours a week for three and four-year-olds, and we are extending the entitlement to free education and care for 260,000 of the most disadvantaged two-year-olds to 15 hours a week. Working families can currently claim substantial help with additional child-care costs through working tax credit. From 2013, the Government’s new universal credit will support those who work, by ensuring that they are better off by doing so. More will always be needed on child care, but the new commission is specifically tasked with dealing with the costs of child care, because that is one of the biggest inhibitors for women who want to return to work.

On equal pay, which I think the hon. Member for Stretford and Urmston mentioned, we have published our updates on our “Think, Act, Report” initiative, some of which relate to the economic consequences of choices made early on. The case studies show that adopting the principles behind the Government’s voluntary approach to diversity at work has helped leading firms reap business benefits. We strongly believe that a light-touch approach, such as “Think, Act, Report”, is the best way to encourage most employers to deal with the complex causes of unequal pay. They have to think about gender differences, act on them and then publish, in whatever form suits them best, what they have found, what they are doing and their best practice.

If the voluntary method is the best way to progress, we also need a stick for those companies that do not follow this progressive agenda, so it is right that we take strong action in the few cases in which employers have been shown to have breached the law. That is why we recently announced that we intend to proceed with our proposal that where an employment tribunal finds that an employer has breached equal pay law, it will order them to conduct a pay audit in cases where continuing discrimination is likely. If an employer has already been found to be bad, there is reason to instruct further. We intend to legislate when parliamentary time allows.

I am slightly short of time, but let me address access to finance, which is a huge issue. I have been working with the British Bankers Association to understand those areas in which there may be discrimination or barriers against women accessing loans for business or mortgages. A report will be issued shortly.

The Government and Lord Davies have made progress on the issue of women on boards. There has been a great improvement in the number of women on FTSE 100 boards—representation has risen from 12.5% to 16%—and it is on target to reach 25%. Only eight all-male boards remain in the FTSE 100, which is eight boards too many. One woman on a board is insufficient, but we will reach the 25% target. From October, there will be a new provision in the corporate governance code, which will require companies to comply or explain their policies.

We have made it clear that we will not introduce quotas. We have a role to play in ensuring that the right frameworks are in place to enable business to thrive, which is what our business-led approach does. We do not believe that European Union-wide standards are appropriate—a discussion is ongoing and we have responded to a consultation on quotas—given the different corporate governance rules, economies and labour market conditions across member states. We also recognise that cultural expectations play a role. In the UK, we do not have a culture of using quotas. In fact, they are not lawful under our domestic legislation. At the moment, we are making good progress.

The hon. Lady raised the issue of all-women shortlists, which led to a step change in representation in Parliament. I believe that they are available until 2030. Both Labour and the Conservatives have taken huge steps forward, and the Liberal Democrats would also have done so had we had more women in winnable seats.

This has been an excellent debate. We could discuss many things that Members on both sides of the House are trying to address. I do not think that the differences between us on this issue are as huge as some of the views expressed in Parliament may lead us to believe. We all need to make sure that, from the earliest point in life, girls are given the choices that will enable them to progress. There is a difference between the lives of men and women, but we are trying to equalise their status as much as we can by providing the support that is needed. There is a whole world of people out there, and half of them are women.

In conclusion, in a global economy the action that we are taking across the world makes sense. It is good for women, good for our economy and good for British business. In doing so, and in advancing the role of women, we create a more competitive economy and a more equal society.