Women: Contribution to Economic Life

Baroness Hodgson of Abinger Excerpts

Thursday 6th March 2014 Lords Chamber

[Baroness Hodgson of Abinger (Con)]

My Lords, I, too, would like to thank the noble Baroness for giving the House the opportunity to discuss this important topic. International Women’s Day is a suitable and fitting time to acknowledge women’s contribution to the economy of this country and to countries all over the world. We have already heard many excellent speeches, so I hope that noble Lords will forgive me if I reiterate points that have already been made.

Everywhere women play a significant role. However, their invaluable contributions are not always recognised and acknowledged, and all too often are still taken for granted, as the noble Baroness has already alluded to. It is a sobering reflection that even today, in the 21st century, there is not one single country where women have the same socioeconomic and political opportunities as men, and too many countries still have a patriarchal culture and discriminatory practices, with too few women in public and political leadership positions, thus limiting their ability to contribute.

This weekend, I am going to New York to take part in the 58th session of the United Nations Commission on the Status of Women, where the priority theme will be “Challenges and achievements in the implementation of the Millennium Development Goals for women and girls”. In considering this theme, we will also be looking ahead to the post-MDG agenda. As my noble friend the Minister has already said, it is very important that we support the recommendations of the UN high-level panel, so ably co-chaired by our Prime Minister, in calling for a stand-alone goal for women because equality for women is progress for all.

To contribute to their full potential, women not only have to be able to access education, healthcare and family planning, they need to be able to lead lives free from the threat of violence. Seven in every 10 women report that they have experienced physical and/or sexual violence at some point in their lifetime. This is not something that just affects women in developing countries. Even here in the UK, two women die as the result of domestic violence every week, which is a shocking statistic.

In many countries it is hard for women to enter the public workplace because it goes against the societal norms and values. We have recently had discussions in this House about women in Afghanistan, to which my noble friend Lady Jenkin has already alluded. There it is estimated that 87% of women suffer from domestic violence and that the attitudes of the Taliban—that a woman’s place is in the house or the grave—still prevail. I salute all the brave Afghan women who have come forward to stand for parliament, to run organisations, to become lawyers, doctors, engineers and diplomats, and to enter many other professions. I know that many of them are very concerned about what will happen with the drawdown of the ISAF forces and I hope that consideration will be given to the security of women human rights defenders at the NATO conference this autumn so that the progress which has been made in Afghanistan does not roll back.

War can provide opportunities for social change. As has already been highlighted by my noble friend Lady Seccombe, this year marks the centenary of the outbreak of World War I. In that war, an estimated 2 million women replaced men in employment. My grandmother, the wife of a naval officer, went to work in a factory producing parts that were desperately needed at the front, and came up against the unions, who said that she and the other women were working too fast. However, at the end of the war, the majority of the women returned, not entirely willingly, to domesticity. The lessons learnt in World War I contributed to the mobilisation of women in World War II to an unprecedented degree. However, again, in the post-war era women were pushed backwards. I give the example of my mother, who worked for the Malcolm Clubs, which set up messes for the RAF overseas. She was one of the first women into Germany as the Allies advanced and then ran the whole of the Far East for them, going to Hiroshima weeks after the bomb had dropped. However, her managerial career was forced to end with the war, and the only line of work that she was able to pursue back in the UK was as a secretary.

We see similar trends today. In Egypt, for example, women were shoulder to shoulder with men in Tahrir Square to create the revolution, only to be pushed out once it had taken place. In the election that followed, only 2% of representatives elected were women.

Here in the UK, the rise in female participation in the labour market has been the defining trend for women of the past 50 years. Today, the increased participation of women in the labour market is vital to the formal economy and to families, with female earnings key to maintaining living standards by counterbalancing flat, and recently declining, wages from male employment. Today, 72% of working-age women are economically active compared with 84% of working-age men. However, women are considerably more likely to be working part-time than their male counterparts and are less likely to be self-employed. We still have a long way to go. As has already been highlighted, there is a gender pay gap: in 2013, hourly earnings for full-time women employees were still 15.7% less than men’s, and 19.1% when part-time employees are considered too. There also still seems to be this issue of the glass ceiling. Although we have some wonderful examples of successful businesswomen in the House, women still account for only 17.3% of FTSE 100 board directors. Why is that?

As we have already heard, girls today are a third more likely to apply for higher education. It would appear that it is when they have a baby that women’s careers can level out, as some women decide not to return to the workplace or to go part-time, thus stepping off the career progression ladder. Although many companies go out of their way to be supportive to mothers by offering flexible working and part-time packages, others do not. Anecdotally, I have heard of firms refusing to take employees back on a part-time basis. There are companies, especially in the City, who require very long working hours from their employees, which discriminate against women by making it difficult for them to get home to see their children. What is the Government’s attitude to this? Should companies be allowed to regularly demand very long hours from their employees, and how does this sit with the European working time directive?

I began my remarks by talking about how women’s contribution to the economy has not always been appreciated. Women also play an invaluable role in supporting the economy through their unpaid work, saving the UK Government an enormous amount of money. Childcare experts recognise that the care and attention a child receives when young will affect their health, behaviour and ability to learn throughout their lives. A stable family gives a child the best possible start. In most families, it is the mother who is the linchpin of the family and has a significantly greater responsibility for unpaid childcare and domestic work, which, when valued at the minimum wage, equates to about 20% of GDP. Some 58% of unpaid carers are female. Of course it is hard to set an exact cost, but its economic value was estimated at £119 billion in 2011, a huge contribution to the UK economy.

Women also make an enormous contribution in the charitable sector by working as volunteers, as my noble friend Lord Holmes mentioned. Time is short, so I will pick just one example: the hospice movement. According to Help the Hospices, most of the funding for hospice care comes from local fundraising, with only a third of the cost being met by government. More than 100,000 people volunteer in local hospices across the UK, without which they could not be run. A study in 2006 estimated the economic value of their volunteers to be over £112 million.

We should celebrate the contribution women make to their economies, especially as regards unpaid work. If women achieved greater equality, it would help their economies. I end with the words of Hillary Clinton:

“I believe that the rights of women and girls is the unfinished business of the 21st century”.