Gender Pay Gap

Dawn Butler Excerpts

Wednesday 5th December 2018 Westminster Hall

[Dawn Butler (Brent Central) (Lab)]

It is a pleasure to serve under your chairmanship this afternoon, Sir David. I congratulate my hon. Friend the Member for Walthamstow (Stella Creasy) on securing the debate. It is always great to collaborate with her on the work that she does on women and equalities to try to move the agenda forward.

We have heard some really great speeches today. I think we are almost in agreement that something needs to be done; I suppose it is about how it will be done, and when it will be done. Labour introduced the Equal Pay Act in 1970, but nearly 50 years later we are still discussing unequal pay, and women are still earning less than men. I loved the fact that on 10 November a lot of women put “out of office” messages on their email to show that they work for nothing from that day onwards. I thought about doing that myself, but the consequences would probably have been rather different.

We are still talking about the pay gap. The UK has slipped from 14th to 15th in the ranking of 33 OECD countries based on the five indicators of female economic empowerment. We really need to do better. There is a lot that we can and should do, so there is no excuse for not addressing the problem. After all, 51% of people in the country are women and the other 49% would not be here it were not for women. It is time we made those adjustments rather quickly.

Women have borne the brunt of Government cuts—87%—and everywhere we turn, women are struggling and suffering. My hon. Friend cited some really stark statistics that show that things are continually getting worse. Sometimes there are marginal gains, but they are really far too slow to work. The gap is at its lowest for women aged 18 to 21; I would call that good news, but the gap opens up significantly—to around 26%—for women in their 50s. What could that possibly be down to? Obviously it is a combination of sex and age, and we know that if we add race into the equation, the gap widens.

We need to take into consideration what is at the heart of the gender pay gap: discrimination. A lot of injustices globally are caused by the undervaluing and devaluing of women and the roles they play. The hon. Member for Livingston (Hannah Bardell) mentioned the issue of manual versus mental labour, which really drives home the point about the jobs women do, the roles we play and the way we are talked about. Our body, our hair, our looks, how we speak, how we walk—all those are additional barriers that men often do not face.

We really need to think intersectionally and look after other women who do not look white or middle-class or have kids. If we are really going to move the agenda at the pace it needs, we have to think about all women, in the round, so that we are not still having this discussion in 50 years’ time. Tackling these issues should be the Government’s main priority. I have sat opposite the Minister many times, and I know that she will say that the Government have done this report and that audit—but audits and reports are just not enough, because they are not getting the job done. We need solid action.

Hon. Members may ask, “What would Labour do?” We will ensure better provision of parental leave and more affordable childcare. We will encourage women and girls to go into male-dominated sectors so that they can achieve high salaries. We will also look at mental versus manual labour—I quite like that concept, so I might nick it from the hon. Member for Livingston.

[Hannah Bardell]

The hon. Lady is very welcome to nick it; we can share it and make it a cross-party tag line. Does she share my concern about comments from chief executives—particularly in the aviation industry, which has one of the worst pay gaps? Ryanair said that its gender pay gap of more than 70% was just because more men are pilots. We must call that out, but we must also encourage the industry to do more and work with organisations such as the Civil Aviation Authority to make sure that we have more female pilots and better support for women to get into such roles.

[Dawn Butler]

I absolutely agree. It is easy to reverse those roles; it is a proven fact that women are very calm under pressure, which is one of the traits that pilots need. There is an organisation in the airline industry—I cannot remember which—in which the woman who is chief exec is making great strides in encouraging women to become pilots. Why not? And why not equalise things the other way by having more male cabin crew? I totally agree that silly excuses are made. Men continue to dominate the most senior and best-paid roles. I know that that will take time to change, because they may have been in the job for a while and discrimination has being ongoing for years, but there is no excuse—we must tackle equality.

The Equality and Human Rights Commission estimates that 54,000 mothers a year are forced to leave their jobs early because they are pregnant. It is outrageous that that figure exists. To address such deep-rooted inequalities, we must ensure that we mandate that employers put action plans in place. It is great that employers now have to tell us their gender pay gaps as a result of regulations made under the Equality Act 2010, but they need to do more—just telling us that there is a gender pay gap without doing anything to address it is not enough.

The Government could do more. They could say—as a Labour Government would—that if an organisation pays its employees well and has an agenda to close the gender pay gap, they will ensure that it has access to Government contracts. If not, it should not get a Government contract, because it does not deserve one.

There is so much to be said, but I know that time is short and I am sure that hon. Members from all quarters of the House will secure more debates on the subject. It has been said that it has been very difficult to win the hearts and minds argument on the gender pay gap because companies are often not interested—they just ask what the bottom line is. However, my hon. Friend the Member for Walthamstow cited a figure of £150 billion that closing the gender pay gap could generate for our GDP. That figure fluctuates, but without a doubt, paying women well will ensure that we add billions to the economy.

--- Later in debate ---

[Victoria Atkins]

The hon. Lady raises a very important point. This is about changing conversations and attitudes in the wider society as much as it is about what we do in this place, which of course is important. Frankly, it is about ensuring that society modernises the way it treats men and women in the workplace. We know that some employers are better than others. I hope that employers who are not doing such a great job will recognise the business reality: given the choice, good people will not want to work for bad employers. This is very much part of us all contributing to the conversation to ensure that employers know how they should treat their workforce.

There is more to supporting people in the workforce. In addition to shared parental leave, we are extending the right to request flexible working. We are creating a £5 million fund to support returners and spending about £6 billion on childcare support by 2019-20. We know that closing the gap will require a collaborative effort from Government and businesses, but I am convinced that, to truly solve this, employers must be the driving force. Every single employer who was supposed to have reported has done so, which means that 10,500 businesses are having conversations—sometimes for the first time—about how they treat women in their workforce.

I absolutely accept what the shadow Minister and others said about the need for action plans. As she knows, we take a slightly different approach to this. I want businesses to come up with their own action plans—indeed, we understand that about 40% of eligible employers have done so. I want to bring businesses with us, but if in due course that does not happen, that option remains open. At this stage, we want the transparency created by reporting figures to be met and addressed further by businesses doing that for themselves through their action plans.

[Dawn Butler]

Will the Minister consider fining companies that refuse to make action plans or change their way of working, as is the case in Iceland?

[Victoria Atkins]

That is an interesting idea. As I said, I want to work with businesses on this. The figures suggest that they are getting the message, but we are all impatient for action and for pay gaps to be closed, so that is a very interesting thought.

I am drawing towards the end of my speech. I am conscious of the time and want to give the hon. Member for Walthamstow a minute, so if I may, I will canter through some of the other points raised. Hon. Members have rightly raised the issue of extending the regulations. We have had only one year of reporting, and I urge them to allow us a little more time to assess the impact of the regulations. We need to consider any changes fully, given the impact on the comparability of the data year on year. We want a foundation of data before considering whether or how to change the current requirements. I am conscious of the wish to lower the threshold at which employers have to report. Again, let us have a couple of years of reporting at the higher level and with big companies, which have human resources departments that can deal with this, with the hope that it trickles down—which I know it is—to smaller employers as well.

In order to give the hon. Lady time to respond, I will end by saying that we know that pay gaps are not restricted to gender. That is why the Prime Minister announced a consultation on ethnicity pay reporting in October, setting out a number of questions that need to be resolved to allow meaningful action to take place. We are mindful of those aspects of fairness in the workplace.

I am grateful to the hon. Member for Walthamstow for this fantastic chance to reflect on a truly momentous year on this agenda, and I am extremely grateful to her for her continued interest in this issue.