Workplace Pay Gaps

Christine Jardine Excerpts

Tuesday 7th January 2025 Westminster Hall

[Christine Jardine (Edinburgh West) (LD)]

It is a pleasure to serve under your chairmanship, Sir Roger. I wish you and everybody else a happy new year, and hope that in 2025 we do again make progress in this area.

I thank the hon. Member for Brent East (Dawn Butler) for securing this debate because, for me and I am sure everybody in this room, closing the gender pay gap—and all the pay gaps—is fundamental to creating a more equal society. We cannot have true freedom and equality of opportunity, quality of life, standard of life or anything in this country if we do not have equality of pay. The hon. Member for Walthamstow (Ms Creasy) mentioned Barbara Castle, which made me think about the fact that the Equal Pay Act was actually passed in 1963. I was a toddler—[Interruption]—yes, I was a toddler—and now here we are, when I can just see retirement appearing on the horizon, and we are still talking about equal pay for women, but also for ethnicity, disability and LGBT issues. It is sad that it has taken us so long.

We have, of course, made progress, but so many of the statistics are frightening—none of them are encouraging reading. According to the Office for National Statistics, the median hourly pay for full-time employees is 7% less for women. It goes up to 13.1% when taken across all hourly paid employees. As the hon. Member for Brent East mentioned, we have, I fear, even more serious issues in terms of both ethnicity and disability, because they have not had the attention over the past 61 years that gender has had.

As I say, we have made progress. In government, the Liberal Democrats were instrumental in pushing for large employers to be required to report on gender pay gaps in their organisations. That has led to some transparency and thrown light on some very serious issues, including high-profile, controversial revelations, particularly in the media sector, where we have seen massive disparities. That underlines how far we still have to go, particularly in tackling inequalities in terms of ethnicity, disability and LGBT, where pay gaps are still not published—we do need publication of those gaps.

Moving forward, this Government must tackle the specific economic barriers facing women, ethnic minorities, the disabled and LGBT by expanding access to flexible, affordable childcare, doubling statutory maternity pay and, critically, expanding shared parental leave, because— I agree with the hon. Member for Walthamstow about this—there is no point in making it about mothers. It has to be about parents, or we simply emphasise the difference, and keep that going.

Flexible, affordable childcare and early years education are critical to our economic infrastructure, and help to close the attainment gap between the wealthy and the poor. They give parents more choice over how to organise their lives and help them to return to work if they want to. Back in 1963, that was not an option that women had. My mother had to give up work when she had me. When she had my sister seven years later, she had gone back to work, and had to give it up again. Then, when she had my youngest sister in 1972, almost 10 years after that equal pay legislation was passed, she still had to give up work—there was no option to go back to work—so it is critical that we address that. It should be a choice.

Lack of access to affordable childcare is a key driver of the gender pay gap. Women lose ground when they do not go back to work after they have had children. I gave up a successful career in journalism not long after my daughter was born because it was simply too expensive, and that was in the 1990s. The progress that we had made by 1997, when I made that decision, was very limited.

We have more to do. As well as improving that specific area, the Government have to look at improving diversity in the workplace and public life. I want to see large employers monitor and publish data on gender, ethnicity, disability and LGBT+ employment levels, pay gaps and progression, and publish five-year aspirational diversity targets. They should extend the use of name-blind recruitment processes in the public sector and encourage their use in the private sector. That is critical, because that is the first step to ensuring that employees are treated fairly. They have to improve diversity in public appointment by setting ambitious targets and requiring progress reports to Parliament, with explanations when targets are not met. As we have heard, we have to start to see heavy fines when that does not happen.

I have been fortunate in my working life, and in those 60 years since the Equal Pay Act, and in the Equality Act 2010, which made a huge difference. I would like to see this Labour Government take this further and ensure that our country manages to achieve the equality that we have striven for. The hon. Member for Brent East says it is predicted to take another 40 years—I will not be here by then, but I would like to see it.