Gender Pay Gap

Dawn Butler Excerpts

Wednesday 18th April 2018 Commons Chamber

[Victoria Atkins]

I am extremely grateful to my right hon. Friend for that question; I am always grateful for her thoughts and suggestions on this issue and the other subjects that her Select Committee examines. I completely endorse what she said about pregnancy discrimination: discrimination on the grounds of pregnancy is unlawful and wrong. Anyone who suffers from that form of discrimination has the support of the law. My right hon. Friend and other colleagues have raised the issue of the three-month time limit. Tribunals have the power to extend that time limit if they feel it is just and equitable to do so, but I am very conscious of the issues that colleagues have raised in relation to the time limit and am looking into it.

[Dawn Butler (Brent Central) (Lab)]

I thank my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman) for tabling the urgent question and I thank you, Mr Speaker, for granting it. I also thank my right hon. and learned Friend for her work on section 78 of the Equality Act 2010.

We need actions, not audits. More than 10,000 companies have reported their gender pay gap, which shows that the Government underestimated the number of organisations that should report. The Government might therefore like to review the figure. It is great that more than 10,000 organisations have reported. Labour’s Equality Act—the legislation—was just step 1 of a five-step programme to narrow and close the gender pay gap. In the sisterly way in which these exchanges are being conducted, I wish to tell the Minister the other four steps. She is very welcome to steal them.

Step 1 is the focus on mandatory auditing. Step 2 is companies’ and organisations’ action plans to close the pay gap. Step 3 is Government certification for fair equality practices, which would ensure that those organisations that are doing well are given certification to show their progress. Step 4 is to follow in the footsteps of Iceland with further auditing and fines for those organisations that fail to get certification of their equality practices, taking into consideration their action plans and reporting. Step 5, which is extremely important, is to shift the responsibility to unequal pay from the employee to the employer, so that instead of the employee having to go through court cases to prove unequal pay, it would be the employer’s responsibility.

In addition, the Equality and Human Rights Commission, which I am sure has been mentioned a number of times today, needs more resources. Seventy per cent. cuts to its resources will jeopardise its ability to enforce sanctions, so the Government will need to review the cuts that they have levied on the organisation. Labour wants to follow in the footsteps of Iceland, which consistently ranks as the No. 1 country for gender equality. I hope that the Government will see Labour’s five-step plan as a way to accomplish that. The deep-rooted social and economic inequality facing women runs deeper than the pay gap. Women have borne the brunt of 86% of Conservative cuts. More than 60% of those currently earning less than the living wage are women. We need to tackle all the issues.

[Victoria Atkins]

I am actually more ambitious than the hon. Lady. I do not just want to impose regulations on business; I want a change in the culture of business, a change in the culture of the public sector where we know there are gender pay gaps and a change in the culture of schools and universities. This cannot be imposed from the top down; it must be driven with enthusiasm by the organisations themselves. I hope that this will empower women to begin asking very difficult questions of their employers. I would like women to begin thinking about this when they apply for jobs. They should look at the gender pay gap and make decisions about how that shows how that employer treats their female workforce.

The hon. Lady mentioned the number of companies in the Government’s first estimate. This is just the first year. This was always going to be a bit of a learning exercise not just for the Government, but for businesses and the way they manage the system. We are delighted that there are more companies than we initially estimated that meet the criteria. As she knows, the criteria cover businesses that employ 250 or more people, which means big, successful businesses. We are delighted that there are more of those than our initial estimates suggested.

I am very pleased that we have the support of the shadow Front-Bench team in our common ambition to help women in the workplace to get a fairer deal. Of course we must always seek to do better—and we must use the data to improve the way in which women are treated—but I am pleased to note that we have more women in employment than ever before and, what is more, the full-time gender pay gap is at a record low of 9.1%—that is 9.1% too high, but it is at a record low, and it is on a downward trajectory. I am sure that we all support that in this House.