Age Discrimination: National Living Wage

Cat Smith Excerpts

Wednesday 8th June 2016 Westminster Hall

[Cat Smith (Lancaster and Fleetwood) (Lab)]

As ever, it is a pleasure to serve under your chairship, Mr Davies. I congratulate my hon. Friend the Member for Halifax (Holly Lynch) on securing this important debate. She absolutely hit the nail on the head when she said this policy is a kick in the teeth for young people. That comment was certainly well received by the Chair.

The Government are sending a worrying message about the generations by pitching them against each other. They are leaving an open goal. They are saying to young workers, “You are not as valuable as older workers.” During the debate we have heard some worrying examples of employers trying to circumvent the fundamental purpose of the increase in the minimum wage by deliberately hiring under-25s. What we have not heard, and I hope the Minister will rectify this, is an indication of a clear strategy from his Government as to how they will ensure that the so-called national living wage is not used by a small number of unscrupulous employers to manage out staff aged 25 or over or to change terms and conditions in a way that would fly in the face of provisions enshrined under the Equality Act.

As part of the shadow Equalities team, I must say that it does not come as a huge surprise that the Government have once again failed to consider equality. We have a Prime Minister who has referred to equality impact assessments as “pointless reports” and “bureaucratic nonsense” and who refuses to conduct a cumulative impact assessment of Government policies on women since 2010. In lieu of that, the Labour Equalities team commissioned research from the House of Commons Library that showed that, as of the Chancellor’s last Budget, 86% of the net savings to the Treasury through tax and benefit changes since 2010 have come out of the pockets of women. The Government appear to talk the talk on equality, but they fail to put in place the fundamental work to ensure that, advertently or otherwise, certain groups in our society do not end up the losers as a result of Government policy.

The Government could have worked in collaboration with key partners such as the Living Wage Foundation or the University of Loughborough to help to pilot the higher rate minimum wage before it went live, but instead it was rushed through so that the Chancellor could score a political hit at the Budget with a shiny new policy. The Government have self-appropriated the term “living wage” to mean their age-restricted minimum wage. That is what it really is, as it is based on median earnings, while the Living Wage Foundation rate is calculated according to the cost of living. That cost of living is the same for young workers as it is for older workers. I have never met a landlord who is willing to rent out a property for less money to someone who is under 25, or a baker who is willing to sell a loaf of bread for less because the person wanting to eat it is under 25. It costs us all the same to live.

We have seen the Government pinch and misappropriate a term to describe a policy pushed through without any proper equality safeguards. Some of the key questions posed during the debate must be answered. What safeguards are in place to ensure that employers cannot manipulate the terms and conditions of their staff to make them worse off as a result of the new higher national minimum wage? What strategy is in place to ensure that workers under 25 are not exploited and that the provisions of the Equality Act are not breached? Will companies be named and shamed? Will there be financial penalties? The Government must put their declarations of being a party of equality into action and demonstrate they are serious about that by answering those basic questions and ensuring that safeguards are in place for young people and all employees in the workplace. Of course, all that could have been thought through much earlier, had the policy not been rushed in the first place.

Young people deserve a better deal than the one they are getting from this Government. What message are the Government sending to young people with wages low, maintenance grants for the poorest students cut and voter registration rules cynically changed to lock young people out of democracy? The number of young people owning their own home is at its lowest level since records began. University tuition fees have trebled. It seems very much that the Government are not on the side of young people, and I fear that the consequences will be severe.

Even the former Tory MP David Willetts, who now heads the independent Resolution Foundation, has said that the Government are creating a “country for older generations”, in which pensioners benefit from constantly rising incomes while the young, their families and children—under-25s can have a family and children—are battling constantly rising prices and falling incomes. He said:

“The social contract is a contract between the generations and in Britain it is being broken.”

The Government must not leave the next generation out in the cold and take them for granted. It seems that the policy of a minimum wage only properly kicking in at 25 has been dreamt up with an idea of young people who perhaps go through higher education and do some internships while living at home with their parents. The reality for many young people is that they are an adult at 18, leaving home and standing on their own two feet. I call on the Government to integrate equality into their thinking right across their policy, so that all groups in society are treated equally.

[Geraint Davies (in the Chair)]

Before I call the Minister, may I make it clear that my somewhat ambiguous utterance in response to one of the comments made by the mover of the motion should not be interpreted as an affirmation? I am completely impartial in my job. Over to the Minister.

[The Minister for Skills (Nick Boles)]

Mr Davies, it is a pleasure to serve under your chairmanship. Whatever utterances you choose to make, I will still enjoy serving under your chairmanship.

I congratulate the hon. Member for Halifax (Holly Lynch) on securing the debate and for setting out her argument as clearly as she did. Hers was one of the more reasonable and well-founded arguments made, but listening even to her speech one would have thought it was not the Labour Government who introduced the idea of age-related minimum wages. Because you are, Mr Davies, like me, of a somewhat older generation than some of the contributors to the debate, you will remember that age-related rates were an integral part of the original National Minimum Wage Act 1998—Labour are right to be proud of that achievement. It was integral that the design should allow rates to vary up to the age of 26. That was done by the Labour Government explicitly to protect young workers in the labour market.

In advancing the argument that the national living wage is somehow an egregious act of discrimination, the Labour party and the hon. Member for Halifax have to accept that they are advancing the argument that the last Labour Government to win an election were a discriminatory Government. Although I am sure that the hon. Members from the Scottish National party would be only too happy to endorse that suggestion, I suspect that the hon. Member for Halifax and the shadow Minister, the hon. Member for Lancaster and Fleetwood (Cat Smith), would not want to go quite that far.

Let me turn to the impact on employment opportunities. Hon. Members seem to forget that there is a real reason why raising legal minimum wages for younger workers too quickly is a risk. When the last Labour Government—the same Labour Government who brought in the minimum wage with age-related bands—finally limped out of office in 2010, unemployment was high in general, but it was particularly high for young people. In the first quarter of 2010, more than 930,000 young people throughout the United Kingdom aged between 16 and 24 were unemployed. The unemployment rate was much higher as a percentage than the rate for people over 24.

I am glad to say that under the coalition Government and the current Government, we have managed to bring unemployment down not only for people over 24, but particularly for people under 24. Now, 307,000 fewer people between the ages of 16 and 24 are unemployed than when the last Labour Government completed their term in office. The risk of unemployment for young people is a sensitive issue because we all know that a protracted period of unemployment can have long-term negative effects on people’s chances as they go through life.

[Cat Smith]

Will the Minister give way?

[Nick Boles]

No. I heard a lot from the hon. Lady.

It is especially important that young people are given early opportunities, which explains the original construction of the national minimum wage. Opposition Members surely recognise that the Low Pay Commission is an independent body charged with advising the Government on what is a responsible increase for the national minimum wage. The commission is charged with looking in particular at what is called—forgive me for the rather unpleasant jargon—the varying bites of minimum wage rises. That refers to the percentage of the median wage for someone of that age that the national minimum wage would represent at that particular level. I am sure everybody can understand, because it is a matter of common sense, that the closer the national minimum wage rate for somebody of that age gets to the median wage, the greater the risk that raising the national minimum wage rate will reduce employment opportunities.

Schools White Paper

Cat Smith Excerpts

Wednesday 13th April 2016 Commons Chamber

[Dawn Butler (Brent Central) (Lab)]

I want to pick up on what the hon. Member for Telford (Lucy Allan) has said. All Members, from all parts of the House, strive to make sure that every school is a good school, and that children are taught by great teachers. Academisation of schools does not, in itself, achieve that. It is important that we make that clear and that we do not pretend otherwise.

I would like to send my condolences to the family of John Cope, a former regional secretary of the GMB, who passed away yesterday. John fought long and hard for teachers all across north London, fighting to ensure that all schools were good ones, and those schools always welcomed John to their school. This might be wide of the mark—I could be completely wrong—but as I read and tried to make sense of the White Paper, I thought that part of this policy might be about stopping trade unions supporting their members. Now, more than at any other time, the one thing that will keep people —whether they work as a teacher, a cleaner, a dinner lady or a teaching assistant—connected and united in an educational establishment is the trade union movement. Rest in peace, John. The fight continues.

In Brent Central, we have five academies. Of all our other schools, only one is rated inadequate. The schools that became academies under Labour were failing schools that became academies in order to turn themselves around, which has indeed worked. That was a process for schools, rather than something that was forced on them. That point will be made throughout this debate.

In 2015, a parent contacted me in complete distress, saying, “They are forcing us to turn into an academy.” She asked me to go to a meeting, and I said, “Yes, not a problem.” I was quite surprised at how distressed all the parents and teachers were at the meeting. I was careful to obtain all the facts before forming an opinion, because that is what we do. I was told that, despite the objections of the unions and the parents, no proper information had been given to them. The parents wanted to have a ballot—a secret one, even—and they were willing to pay for it, but the school would not allow that to happen. Strikes and marches by the parents followed, and the kids were distressed, because the school was forced to turn into an academy. I worry that that will follow when other schools are forced to turn into academies.

Councillor Melinda Tilley, the cabinet member for education on Oxfordshire County Council, said on BBC Radio 4’s “Today” programme last month:

“It means a lot of little primary schools will be forced to go into multi-academy trusts and I just feel it’s the wrong time, in the wrong place. I’m fed up with diktats from above saying you will do this and you won’t do that. This is not why I became a Conservative. It makes my blood boil. I’m put in a position where I can’t protect schools. One size does not fit all. I think they’ve gone bonkers.”

[Cat Smith (Lancaster and Fleetwood) (Lab)]

My hon. Friend is making some very good points about small rural schools. I do not believe that the Secretary of State addressed those points when she was questioned by MPs from her own side of the House. I have schools in my constituency with as few as 13 pupils. What kind of academy trust will want to take on a school that small?

Budget Resolutions and Economic Situation

Cat Smith Excerpts

Thursday 17th March 2016 Commons Chamber

[Cat Smith (Lancaster and Fleetwood) (Lab)]

Growth has been revised down last year, this year and for every year of the forecast. Business investment has been revised down last year, this year and for every year of the forecast. In this Budget the Chancellor has failed to provide a future for the next generation.

I have some fantastic schools in my constituency and I have been privileged recently to visit two of those schools which have improved their Ofsted results, Fleetwood High School and Carter’s Charity Primary School in Preesall, both coastal schools which, with strong leadership and under the headships of Richard Barnes and Brendan Hassett, respectively, are showing great signs of improving, with the support of the local authority. But all this is at risk from the Chancellor’s reckless plans to force all schools to become academies, whether they want to or not. Parents must have a say in the future of local schools, and it is wrong for this Government to impose a one-size-fits-all solution on schools. That will take away the national curriculum, accountability to local people through councils, and the ability of parents and of the community to obtain information to find out what is going on through freedom of information requests.

How does removing local authorities’ role from our schools put power in the hands of local people? Michael Wilshaw, the chief inspector of schools, has written to the Secretary of State, highlighting to her the serious weaknesses in academy chains, but this Government have failed to listen to the evidence.

I have great concerns for my constituents about the future of museums. Although I welcome the announcement in the Budget of support for museums, that is of little comfort to my constituents, who are worried about the future of Fleetwood Museum, the Maritime Museum in Lancaster, the Judges’ Lodgings and the Cottage Museum, all of which are supported by Lancashire County Council, but after budget cuts year after year, the council is unable to provide that support and we risk losing our northern museums.

On disability, I pay tribute to my constituent Graeme Ellis who, until yesterday, had been a lifelong Conservative party member. He felt that the choices made by the Chancellor to hit disabled people to give tax breaks to the rich was a step too far. He resigned in style.

I welcome the principle of the sugar tax as a positive step towards encouraging people to make healthy choices. As an MP with a heavy dairy-farming constituency, I welcome the decision to remove milk-based drinks from the levy. The situation in the dairy industry is far from good right now. Average dairy farm incomes are forecast to fall by half in 2015-16 and arable incomes are expected to be down by almost a quarter. Sadly, there is little comfort for the 90% of UK farm businesses which are unincorporated and therefore will not be beneficiaries of the Chancellor’s continued focus on reducing corporation tax.

Three months on from Storm Desmond, the Chancellor’s announcement of £700 million for flood defences is welcome for the parts of the country that benefit from it. I was concerned to see that Lancashire was not included, and it is little comfort to my constituents around the River Cocker and in Winmarleigh and Thurnham, who suffered so badly in the flooding.

One of the biggest issues, which fills my inbox every week, is the effect of council cuts and losing local services, but there is nothing in the Budget that helps councils. This Budget fails local government.

Rather than investing in building new homes to fix Britain’s broken housing market and cut housing benefit costs, the Chancellor has slashed housing investment by 60%, and housing benefit has risen by more than £4 billion a year in cash terms.

This Budget is a failure, it lacks any fairness and it offers nothing for the future. If anything it only amplifies the question: how can we trust the Chancellor to get it right for the next four years, when he has not had it right in the last four months?

Oral Answers to Questions

Cat Smith Excerpts

Tuesday 15th March 2016 Commons Chamber

[Mr Vaizey]

The hon. Lady makes an excellent point and I am pleased that her constituency will achieve levels of 96% broadband coverage. The point she makes, which I would like to emphasise to the Opposition spokeswoman, the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), is why we have brought forward Labour’s target by two years. We have achieved by the end of 2015 what Labour planned to achieve by the end of 2017.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

Many of my rural and farming constituents are looking to diversify, and are setting up their own businesses and working from home. Frustrated with the wait for BT to deliver superfast broadband, many have been left in the position of digging their own trenches and working with Broadband 4 the Rural North to deliver superfast broadband so that they can run their businesses. What message does the Minister have for my constituents who have been left in this situation?

[Mr Vaizey]

My message to the hon. Lady, as opposed to her constituents, is that people have to make up their mind. One moment I am being berated because BT has a monopoly and now I am being berated because people are choosing a different provider. Broadband 4 the Rural North is a fantastic community broadband programme. We encourage lots of competition for BT and I am pleased that B4RN is thriving and providing an excellent service to her constituents.

Oral Answers to Questions

Cat Smith Excerpts

Monday 25th January 2016 Commons Chamber

[Mr Gyimah]

There are a number of ways to develop comprehensive careers advice and guidance. The Careers and Enterprise Company, in which we invested £20 million, is one part of that. As my right hon. Friend the Secretary of State has said, in the spring we will publish a comprehensive strategy for how schools can work with the company and the plethora of other organisations out there to deliver the right level of careers education, starting from primary level right through to the end of school.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

T1. If she will make a statement on her departmental responsibilities.

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

First, let me congratulate the 107 people who were recognised for their services to education and children’s services in the latest new year’s honours list. They include headteachers, classroom teachers, school governors, foster carers, children’s social workers and people working in adoption and early years settings. I am sure the whole House will want to congratulate them and thank them for the work they do.

May I also extend my support to all the pupils, teachers and communities affected by the recent floods in the north of England? I saw for myself the impact on schools in Carlisle recently, and the Minister for Schools has visited Yorkshire and Lancashire to see the impact for himself.

[Cat Smith]

The Minister will be aware of the case of Poppi Worthington, a constituent of my hon. Friend the Member for Barrow and Furness (John Woodcock), and her tragic death. Does she support the calls from both sides of the House for an independent investigation into the circumstances and failings before and after Poppi’s death?

[Nicky Morgan]

Poppi’s death was clearly an absolute tragedy. It is vital that we understand what has happened and have the opportunity to learn any lessons. The serious case review into her death will be published shortly, and I welcome the announcement by the Crown Prosecution Service that it will review the case. We do have concerns about Cumbria children’s services. They were inspected in May last year and found to be inadequate. There have been some improvements, but not enough. We will review progress in the workings of the children’s services in March and take a further decision. It is right to wait for the serious case review and the CPS review, but of course we will keep this matter actively under review, including the demands for an independent inquiry.

Feminism in the School Curriculum

Cat Smith Excerpts

Monday 11th January 2016 Commons Chamber

[Cat Smith (Lancaster and Fleetwood) (Lab)]

I congratulate my hon. Friend on securing this important debate. I discovered feminism through doing my A-levels—not A-level politics, but A-level sociology—which opened my eyes to the inequality that women face. Does she agree that women’s voices are often silenced in political debates, and that seems to be a way to silence the women from the past as well as those of the future?

[Dr Huq]

My hon. Friend makes a very correct point, and anticipates part of my speech. Women’s studies should not just be for women; this matters to all of us.

The proposed syllabus implies that women do not belong in politics and that their contributions are not significant. That toxic message has been condemned roundly by loads of people, including the girl guides, whom one would not usually think of as a dangerous radical group. The Daily Telegraph, which is normally a loyal, cheerleading Conservative paper, has reported that there will be concessions after, in its words,

“plans to drop feminism backfire”.

I am encouraged by the story in The Independent on Sunday that feminism will be taught at A-level, and by a tweet from The Telegraph today saying that it will be made compulsory.

I would like assurances from the Minister about what is actually going on—to quote Donald Trump involuntarily, “What the hell is going on?”—because this should not be left for us to make inferences from press rumours and the Twittersphere. The Government must now be clear and confirm the number of women thinkers on the new syllabus, their names and whether feminism will be fully reinstated. This is not the first Government U-turn in matters curricular that I have witnessed since becoming an MP.

Women and Low Pay

Cat Smith Excerpts

Wednesday 18th November 2015 Westminster Hall

[Cat Smith (Lancaster and Fleetwood) (Lab)]

It is a pleasure to serve under your chairship, Mr Howarth. I congratulate my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) on securing this important debate, and I pay tribute to the many people on Twitter who are tweeting this morning on #WomenandLowPay, and are contributing to this debate as part of the digital opening up of Parliament.

We have heard this morning that the gender pay gap in the UK remains, and that women earn 81p for every pound that men earn. Many reasons have been given for that, including a system of occupational segregation in the UK; all too often, women find themselves in low-paid sectors such as retail, hospitality and care, and work part time because they have caring responsibilities. Women face barriers in going to employment tribunals because of maternity discrimination. They face barriers to training and development, including apprenticeships. Sadly, this Government have failed to build on Labour’s achievements, and their cuts are hitting women hardest.

My hon. Friend gave a good example of women’s work being valued less than men’s. She referred to a Father Christmas earning £12 an hour and a Mrs Claus earning the national minimum wage—half the hourly wage of Father Christmas. That got me thinking about a few things, including the message that sends to the children who visit that Father Christmas—that we value his work more than Mrs Claus’s. Frankly, I doubt whether Father Christmas could get round the world in one night without the support of a wife like Mrs Claus.

The majority of low-paid workers in this country are women. Three in five national minimum wage jobs are held by women, and over a quarter earn less than the living wage; the figure for men is one in six. Women are pushed into clerical, caring, catering, cashiering and cleaning occupations, as we have heard, and I will add another “C” to the list: classroom assistant. That brings me to my mother, who was born in the 1950s and works as a classroom assistant. With her union, she challenged her employer on equal pay legislation and on why classroom assistants were earning far less than men who were working for the council in similar jobs of equal worth.

My hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) referred to pensions discrimination. I call on the Minister to outline what transitional protection he will introduce for women who have been caught in that trap.

The Resolution Foundation estimates that care workers, 78% of whom are women, are collectively paid £130 million below the national minimum wage, because employers fail to pay for travel time between appointments, and make deductions for items necessary for their job, such as uniforms, mobile phones and petrol. Women are forced into work in which they are undervalued and low paid. For example, 63% of those in retail and customer service are women.

What are the Government doing to end gender segregation and undervaluation of women’s work? Will the Minister give a commitment to take action to encourage women to consider traditionally male-dominated jobs, especially in science, technology, engineering and maths—STEM careers—as well as encouraging men to consider, for example, the caring professions, to ensure that these careers are properly valued and paid at the rate they deserve? We should ask ourselves as a society why we do not value the work that women do to the same extent as that done by men. Some 42% of women are employed part time, but the average part-time hourly rate is less than a third of the full-time hourly wage.

[Angela Crawley]

Does the hon. Lady agree that zero-hours contracts only exacerbate inequality? Will she join me in calling on the Government to ban exploitative zero-hours contracts, particularly as we are coming up to Christmas, when the retail industry in particular exploits such contracts?

[Cat Smith]

The hon. Lady predicts where I am going. I agree that zero-hours contracts make it very difficult—for women, predominantly—to plan, especially at this time of year. Reference has been made to Father Christmas; this is an important time of year for families to come together. It can be an expensive time of year. Budgeting when on low pay is essential, but if someone does not know what wage they will take home at the end of the month, it is very difficult to budget at all.

What are the Government doing to create more well-paid jobs with reduced hours or flexibility? The TUC has researched the issue of single-parent families, who are twice as likely as couple-parent families to live in poverty, and 90% of single parents are women. Women’s low pay arises hugely from the fact that they are often a single parent in a household. Single mothers are more likely than mothers in couples to be in low-skilled work, reflecting the difficulties in finding well-paid work that fits around caring responsibilities.

Research from 2005 showed that 30,000 women were forced out of work through pregnancy discrimination, but 10 years later, that figure has almost doubled to 54,000. What are the Government doing to tackle maternity discrimination, and to ensure that women who are victims of such discrimination have access to justice?

As part of my research for the debate, I contacted the National Union of Students and asked it for the information that it has about apprenticeships as part of the work that it is doing. I pay tribute to Shelly Asquith, its vice-president, welfare, who provided me with the information. On average, young men earn 21% more than young women while doing an apprenticeship. According to the poll, female apprentices earn just £4.82 an hour, compared with £5.85 an hour for male apprentices. What steps are the Government taking to improve training opportunities for women, and to ensure that apprenticeships do not discriminate by gender?

My hon. Friend the Member for Brentford and Isleworth set out Labour’s record on equality issues. The Equal Pay Act 1970, the minimum wage, the Sex Discrimination Act 1975 and the Equality Act 2010 were all introduced by a Labour Government. In government, we have also strengthened maternity and paternity rights. What we have seen from the current Government is a lot of job losses in the public sector. Of the local government job losses since 2010, 96,000 have fallen on men, while 141,000 have fallen on women. With the pay for low-paid work being 8% higher in the public sector than in the private sector, how many of these women are being forced out of their public sector jobs into equivalent private sector jobs and in effect receiving a pay cut?

Will the Minister commit to developing all tax and spending in a way that takes on board the likely impact on women’s equality? I ask that because 85% of the tax credit and benefit changes have fallen on women, and 70% of the savings made by cuts to tax credits have fallen on women. Will the Minister include in the new gender pay gap reporting regulations a requirement for employers to publish information on the earnings distribution of men and women in their workforce? I ask that because unless women know that they are receiving less pay for an equal-value job, it is very difficult for them ever to take any action to challenge that.

The full-time gender pay gap is 9.4%, but that masks the adverse experience of those working part time, where pay is typically lower, resulting in an overall gender pay gap of 19.1%. Indeed, the UK’s gender pay gap is above the EU average, and at the current rate of progress, it will take 50 years to close it. Although I am a young MP, I plan to be retired in 50 years’ time. I am not prepared to wait that long, and I am sure that the Minister is not, either. I therefore hope that he will have positive answers to my questions. I leave him with this thought: why do we value women’s work so much less than we value the work that men do?

--- Later in debate ---

[Nick Boles]

As the hon. Lady is aware, all decisions, legislation and regulations are subject to equality impact assessments, in which all those things are considered. Her intervention leads me neatly to my conclusion. For all that the steps that I described—transparency, leadership, childcare provision and increasing the national minimum wage through the introduction of the national living wage—are powerful, the most important source of opportunity to improve the pay of women and close the pay gap is a strong economy that creates lots of new jobs. Those new jobs and employment opportunities give women the opportunity to go out and command better wages.

Although I understand that the hon. Lady opposes public spending cuts, it is nevertheless the case that as a result of the consistent policy of slow but steady deficit reduction, this economy has created more jobs than any other country in Europe, and more women are in work than ever before. It might have been possible for Opposition Members, while properly opposing the Government on specifics, to give some acknowledgement of the fundamental achievement of creating jobs, which create opportunities, including the opportunity for women to improve the wages that they earn.

[Cat Smith]

Will the Minister give way?

[Nick Boles]

I have concluded.

[Ruth Cadbury]

Thank you, Mr Howarth, for chairing the debate and for your understanding. This is the first Westminster Hall debate that I have secured, and my speech was the first I have made in which I have not been severely time-constrained. Like many new Members, I am still getting used to the procedures and practices in this place, so I thank you for your generosity and your support. I have been particularly pleased to serve under your chairmanship.

In concluding the debate, I thank those who helped me in the preparation of my speech, in particular the TUC, the staff of the Women and Equalities Committee, Oxfam and Age UK. They all provided useful, informative material. I thank fellow Members who have contributed to the debate. I notice that there has been only one contributor from the Conservative party—the Minister. I regret that there have not been more contributions from Members of the governing party, as I know that they all represent large numbers of women in their constituencies, many of whom will be affected by the issue of low pay.

My hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) eloquently described the impact of a working life on low pay, and what that means for then being a pensioner on low pay. She specifically mentioned the women, born only a few years earlier than me, who had planned for retirement at a particular age but have now had their plans ruined and cannot properly budget for their retirement because of the change in their pension arrangements. Transitional protection is vital for them. Those women will have to work for low pay for longer, and they will be very vulnerable in the workplace over the next few years.

I thank the hon. Member for Lanark and Hamilton East (Angela Crawley), with whom I serve on the Women and Equalities Committee. She outlined the public sector challenges and some of the issues for women in Scotland, particularly in her constituency. My hon. Friend the Member for Coventry North East (Colleen Fletcher) eloquently described what low pay means in the city of Coventry, particularly in her constituency, where the gap between men’s and women’s pay is even higher than the national average. That just shows how dependent the women of that city are on low-paid work. She and other Members also mentioned how zero-hours contracts affect low pay.

I do not have daughters. I have two sons. All the work that they have done to date has been on the minimum wage and on zero-hours contracts. It is all right for them, because they live with us. We always have food in the fridge and there is always a washing machine for them to use—occasionally, admittedly. They would like to earn more. However, the women they work with are trying to pay rent, feed children and run a family, and they cannot do so on the minimum wage, particularly where we live in outer west London.

The hon. Member for Airdrie and Shotts (Neil Gray) pointed out that the new national minimum wage applies only to people who are 25 and over. That might not affect as much young people who still live in the family home where a number of people are bringing in money, but many young people under 25 live on their own and have to pay rent and household bills. Why should they be left out of the new national minimum wage, which is effectively a rebadged minimum wage?

[Cat Smith]

Is my hon. Friend aware of any shops that will sell a loaf of bread or a pint of milk for less money to someone under the age of 25 than to someone over the age of 25? Should not a living wage be enough to live off? When living costs are equal, we should have equality in the living wage as well.

[Ruth Cadbury]

My hon. Friend is absolutely right. That is why the Living Wage Foundation carefully researches what a living wage should be. A living wage should be enough to live on, which is why the living wage is fully researched and accredited, and why it is higher in London than in the rest of the country.

Trade Union Bill

Cat Smith Excerpts

Tuesday 10th November 2015 Commons Chamber

[Kevin Brennan]

The hon. Lady is absolutely right; I do not think that those provisions would be in the Bill if the Government did not intend to use them. Parliament should not grant the Government those reserved powers on any assumption other than the assumption that they intend to use them. Conservative Members should think very carefully about what they are granting in this Bill.

There are significant questions to be asked about the legal basis of such a change in relation to European Union law on health and safety representatives, on the rights of trade union representatives to facility time during consultations on collective redundancies, on outsourcing, and on rights protected by the European convention on human rights and the International Labour Organisation conventions. Moreover, according to research commissioned in 2007 by the Department of Trade and Industry—now the Department for Business, Innovation and Skills—workplaces with facility arrangements have lower voluntary exit rates, which leads to significant savings in recruitment costs.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

Does my hon. Friend agree that the cuts in facility time, along with the employment tribunal charges, will deter women from pursuing cases of maternity discrimination? The number of those cases is apparently rising, but women have not been receiving justice recently.

[Kevin Brennan]

My hon. Friend is quite right. Other Members have also drawn attention to the degree to which the Bill discriminates against women in the workplace.

Trade Union Bill

Cat Smith Excerpts

Monday 14th September 2015 Commons Chamber

[Cat Smith (Lancaster and Fleetwood) (Lab)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests and declare that I, too, am a member of Unite the union and the GMB. I am also the daughter and grandaughter of two trade unionists. I am very well aware that I stand on the shoulders of giants from the generations that have gone before me and fought for my rights in the workplace—the rights for a weekend, for maternity pay and for sick pay. Those rights make workers more productive and happy. If those on the Government Benches are serious about protecting and growing our economy, they would take trade unions seriously as a partner and strengthen their rights, not remove them.

I am interested in seeing improvements to trade union rights in this country. Many colleagues have mentioned e-balloting. If we want more people to participate in a ballot, we should make it easier for them to do so.

The thresholds proposed in the Bill are a hypocrisy. Why should we apply a higher standard to working people who wish to organise unions in this country than we apply to ourselves? I would not be serving in this House today if I had been expected to meet the thresholds that have been proposed for our trade unions. It is an attack on civil liberties. As has been mentioned, article 11 of the European convention on human rights states:

“Everyone has the right to freedom of peaceful assembly and to freedom of association, including the right to form and join trade unions”—

for the protection of their interests. This Bill puts a restriction on people’s rights, and I note that the briefing note sent to MPs from Liberty supports that view.

I wish to move now to a subject that has not been covered quite so much today. It is a sorry state of affairs that the Government cannot see the huge economic benefits of trade union membership and strong trade unions. Looking at the relationship between two major economic trends since the 1970s, namely declining union membership and a shrinking share of wages and salaries in national income, it becomes clear that the UK has paid a heavy economic price for years of labour market deregulation and anti-union policies. The UK is wages-led: it is wages, not profits, that drive growth in our economy. If profit shares go up, as has been the case for the past four decades, demand actually decreases. A 1% increase in the profit share leads to a 0.13% decrease in demand, which is a loss of £2.21 billion to the economy at today’s levels.

The role of trade unions in ensuring a successful economy must be recognised if the damaging decline in the portion of national income going to wages is to be reversed. It is for that reason that I will oppose this Bill this evening, and I urge Government Members to do the same.

Equal Pay and the Gender Pay Gap

Cat Smith Excerpts

Wednesday 1st July 2015 Commons Chamber

[Cat Smith (Lancaster and Fleetwood) (Lab)]

I congratulate the hon. Member for Inverclyde (Ronnie Cowan) on an excellent maiden speech and on raising some good points around austerity.

I am proud to speak in support of this important motion. It is 45 years since we passed the Equal Pay Act 1970, but in my constituency of Lancaster and Fleetwood women still earn just 87p for every male pound. I am pleased to note, however, that that is above the national average of 81p, but any gap is too large.

There is a saying that what counts is measured, and what is measured counts. That is why the motion to task the Equality and Human Rights Commission to perform an annual equal pay check to collate and analyse published information, and to make recommendations for action, is so important.

The Equality Act 2010 included rules on pay transparency that would have required employers of more than 250 employees to publish details of the average pay of men and women in their workforce and the gender pay gap. However, when the coalition came to government, it announced that it would not implement the provisions for mandatory reporting, which seems to be a clear indication that the gender pay gap is not important to those on the Government Benches because they did not think that it was important to measure it.

The coalition Government did, however, invite companies to report voluntarily—a policy adopted by only a fraction of companies. Perhaps that explains why the UK performs so poorly on measures of gender pay inequality globally. We have the sixth highest gender pay gap in the EU, and in 2014 slipped out of the top 20 in the global gender gap index for the first time, with the high gender pay gap cited as a significant reason for that.

While Labour was in government, there was a clear focus on closing the gender pay gap and real progress was made. In the five years before 2010, under a Labour Government, the gender pay gap narrowed by 2.4%, but in the past five years, under a Conservative and Liberal Democrat coalition Government, progress slowed and the gap closed by only a further 0.7%.

It would seem not unreasonable, therefore, to argue that the Government, in telling companies that they were not interested in measuring the gender pay gap, were also telling companies that the gender pay gap did not matter. The incentive of public disclosure represented by the reporting measures that Labour included in section 78 of the Equality Act was removed by the coalition Government, the focus on closing the gender pay gap was lost and progress slowed.

Pay transparency works, and it is not a new idea. Countries such as Sweden, Denmark, Finland, Belgium and Australia have gender pay reporting requirements, and they all score better than the UK on the global gender equality index.

The Office for National Statistics reports a rolled-up figure for the gender pay gap, but, as we know, women are over-represented in low-pay sectors and more likely to work part-time than men, so disaggregating the information is vital if we are to understand the problem properly and work out how to address it.

An equal day’s pay for an equal day’s work has been an idea long at the heart of the Labour movement and the campaign for women’s pay equity has crossed into popular culture, with the story of the campaign of the women workers at the Ford car factory in Dagenham being made into not only a film, but, more recently, a west end musical. The story from Dagenham illustrates some of the complexities of equal pay, for it is about not only women being paid the same as men when they do the same job, but recognising that those trades and professions that have traditionally been occupied by women are generally paid less.

Women’s work across the economy is undervalued. We see that in the gender pay gap, but also in the austerity measures of this Government—cutting the funding for public services and then pushing services from the public sector into the charity and voluntary sector, where employees are more likely to be women, wages are more likely to be lower and more work will be unpaid.

This situation only highlights the contradictions inherent in Government policy. Introducing his plans to cut working tax credits, the Prime Minister made the argument that the Government should not be subsidising large companies to underpay their workforce. This is a position I agree with, but for me it has two logical consequences—first, that the minimum wage must be a living wage, and secondly, that organisations funded by any level of government to provide public services must be funded at a level that ensures that each of their workers receives at least a living wage, and preferably one that reflects the skill and centrality of public services to our community.

In conclusion, the UN says that at the current rate of progress it will take Britain another 70 years to close the gender pay gap. That would be another 70 years on top of the 45 years since the Equal Pay Act was passed. Surely 115 years is just too long. It certainly is for the women of my constituency, which is why I support the motion and call on all Members to do so.