Economy: Women’s Incomes

Baroness Thornton Excerpts

Monday 25th November 2013 Lords Chamber

Asked by

[Baroness Thornton]

To ask Her Majesty’s Government whether they have carried out an economic impact assessment of the effects on women’s incomes and standard of living of their economic policy since May 2010.

[Lord Newby (LD)]

My Lords, departments take full account of the impact of their policies on women. In spending round 2013, the Government published an analysis of how their decisions impacted on different groups, including by gender. This was a first for any UK Government. The economy is growing, the deficit is falling and jobs are being created. The only sustainable way to raise living standards for both men and women is to stick to our current economic plans.

[Baroness Thornton (Lab)]

I thank the noble Lord for that Answer. I have to say that it does not coincide with the information that I have, which was produced by the House of Commons Library. Its analysis tells us that, of the £14.4 billion George Osborne has raised through additional net direct tax and benefit changes, about £11.4 billion—79%—is coming from women. This includes low-paid new mums, who have lost nearly £3,000 in support during their pregnancy and their baby’s first year; couples with children, who have lost 9.7% of their disposable income; and single mothers, who have lost the most—15.6%? Does the noble Lord think that that is fair, and how does it reflect, “We are all in this together”?

[Lord Newby]

My Lords, I think that those figures are in some respects significantly misleading. For example, 98% of all child benefit goes to women, but it is the whole household that benefits. The single biggest improvement in the position of women under this Government has come from the fact that there are 450,000 women now in work who were not in work in 2010. This is as a result of the Government’s economic policies, which have kept interest rates down so that we have not seen the high unemployment peak that we had in the previous recession.