Oral Answers to Questions

Baroness Morgan of Cotes Excerpts

Thursday 15th January 2015 Commons Chamber

[The Minister for Women and Equalities (Nicky Morgan)]

Women make up almost 47% of the work force, but their representation falls in more senior positions. We want to ensure that women can take advantage of all the opportunities that their workplace offers them. For example, we are ensuring that parents can balance work and family life through measures such as extending flexible working and introducing shared parental leave and tax-free child care. We are also working with business to implement the recommendations in the Lord Davies report.

[Mr Sheerman]

May I push the Minister on that? We still lag behind France and the Scandinavian countries in how we allow women to release their potential as managers, members of corporation boards, scientists and engineers. We are lagging behind the competition, so why did she and her party not support the Bill promoted by my hon. Friend the Member for Rotherham (Sarah Champion) which would at least have provided equal pay in the workplace?

[Nicky Morgan]

The hon. Gentleman knows that the gender pay gap has narrowed again under this Government. For workers under the age of 40 it has almost been eliminated. He also knows that there are more systemic reasons for the continuing pay gap between men and women. Part of that is about the inspiration and advice that our young women get when they are at school. I am talking about the options, the careers and the subjects that they should be taking. That is a long-term systemic problem, which is part of the reason why, as Secretary of State for Education, I announced before Christmas that we were backing an independent careers enterprise company.

[Mary Macleod (Brentford and Isleworth) (Con)]

This Government have made the most progress ever on increasing the numbers of women on boards, but does the Secretary of State agree that it is still unacceptable to have only five female chief executives in the FTSE 100? Does she believe, as I do, that there is more to be done on the executive pipeline?

[Nicky Morgan]

I very much agree with my hon. Friend. We need only 24 more women on boards to reach Lord Davies’ target of 25% of women on FTSE 100 boards. We now have no all-male boards in the FTSE 100. It is important to bear in mind that not all women want to become FTSE 100 board directors, but we should ensure that equality of opportunity goes right the way through all our workplaces.

[Diana Johnson (Kingston upon Hull North) (Lab)]

On promoting equality, what will the Minister do about the 91% drop in claims for sex discrimination that have gone to an employment tribunal since her Government introduced the fee of £1,200 to take a case?

[Nicky Morgan]

In 2011-12, there were 1,700 employment tribunal claims which included, for example, maternity rights-based claims. Of those, 900 were ACAS-conciliated, 120 were successful at hearing and 430 were withdrawn. A claim can be launched with a payment of just over £200. It is right that people still have the option to go to employment tribunals, but the fact that the ACAS numbers are so high shows that it is possible to reach agreement between employers and employees.

[Pauline Latham (Mid Derbyshire) (Con)]

Does my right hon. Friend agree that greater transparency on pay is vital in giving women in my constituency the best chance to reach their potential?

[Nicky Morgan]

I very much agree that transparency is extremely important, which is why this Government have backed the Think, Act, Report initiative that encourages companies to think very hard about equality and diversity, including pay, right the way through their organisations. We now have more than 270 employers signed up covering 2.5 million employees.

[Mike Freer (Finchley and Golders Green) (Con)]

2. What assessment she has made of the implications for her policies of the appointment by the Church of England of its first female bishop; and if she will make a statement.

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[Mr Nigel Evans (Ribble Valley) (Con)]

6. What steps she is taking to close the gender pay gap.

[The Secretary of State for Education (Nicky Morgan)]

The gender pay gap is at its narrowest ever and has been entirely eliminated among full-time workers under the age of 40. Of course the gender pay gap is still too wide, which is why we are closing it further by encouraging girls and young women to consider a wider range of careers, including well-paid careers in technology and engineering.

[John Howell]

Does the Minister agree that closing the pay gap further means that businesses could still do more to ensure that they recruit, retain and promote the best women?

[Nicky Morgan]

I agree with my hon. Friend. Successful businesses know that they cannot afford to miss out on the talents and experiences of half our population, and the Government are working closely with business on that, especially through the Women’s Business Council, which was established by this Government in 2012. We are helping businesses to ensure that women can fully contribute to the country’s economic growth.

[Mr Evans]

It is great that the pay gap has been eradicated for women under the age of 40, but if a woman happens to be aged between 40 and 49, the pay gap is 13.9%, and if they are aged between 50 and 59, it is over 18%. That is clearly unacceptable. Will the Minister now direct her attention towards ensuring the eradication of the pay gap for those aged over 40?

[Nicky Morgan]

As I have already mentioned, research shows that the pay gap is mostly not about direct discrimination, but about the jobs and sectors that women enter and the progress that they make, particularly if they take time out of the labour market. In November, we announced that we were investing over £2 million in helping women, especially women over 40 and those working part time, to move from low-paid, low-skilled work to higher paid, higher-skill work. That programme of work is delivered by the UK Commission for Employment and Skills, which will start by focusing on helping women to develop skills in science, technology, engineering and maths, retail, hospitality and the agricultural sector.

[Fiona Mactaggart (Slough) (Lab)]

Chartered Institute of Personnel and Development research shows that people stuck in low pay—women who have been in low-paid jobs for 10 years—are more likely to be unable to escape it. I have not heard from the Minister any strategy to help those older women escape low pay. It is all very well talking about money, but what is happening on the ground to help older women?

[Nicky Morgan]

The hon. Lady did not listen to the answer that I have just given. We are investing money, working with organisations such as the UK Commission for Employment and Skills, and particularly looking at enabling women in low-paid, low-skill work to develop further skills, for exactly the reasons that she cited—so that they can have higher paid jobs, which obviously provides more security for them and their families.

[Sheila Gilmore (Edinburgh East) (Lab)]

I wonder whether the Minister would accept that the Government made a mistake in not implementing compulsory reporting on gender pay. Not enough businesses have voluntarily taken up such reporting. It is not too late to make the change; perhaps she would like to commit to doing so.

[Nicky Morgan]

We as a Government have always said that we would keep that section under review, but I believe that it will be much better, and we shall achieve much more systemic change, with companies thinking very hard about the pay that they offer their employees and about the diversity in their work force, if we work with them on the voluntary approach—the Think, Act, Report approach—rather than burdening them with more regulations.

[Douglas Carswell (Clacton) (UKIP)]

4. What steps her Department is taking to reduce homophobic bullying of young people in England and Wales.