Equal Pay and the Gender Pay Gap

Debate between Gloria De Piero and Stephen Phillips

Wednesday 1st July 2015 Commons Chamber

[Gloria De Piero]

The Labour Government did some fantastic work on equal pay. My hon. Friend will know that we Labour Members never stop fighting for progress and never stop challenging. That is why today is part of the overall journey; we must monitor what happens to make sure that we do not go backwards.

[Stephen Phillips (Sleaford and North Hykeham) (Con)]

The hon. Lady is generous in giving way. I have to say that I have never had any difficulty in being short. The last Labour Government might have done a great deal in this area, but one thing they did not do was indicate that they would bring into force section 78 of the Equality Act 2010. It has taken this Government to do that, so will she explain why the last Labour Government did not consider transparency important?

[Gloria De Piero]

Gosh—let me explain what happened. Just before we left office, we introduced—led by my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman), the acting leader of the Labour party—the Equality Act 2010. We passed the Act and section 78 merely needed to be implemented, but the coalition parties decided to ditch that section. [Interruption.] Yes, that is what happened, so I am grateful to the hon. and learned Gentleman for enabling me to remind the House of what happened.

It is extraordinary that even in professions dominated by women—hairdressing, catering, cleaning—the pay gap still exists, while women in skilled trades, including plumbers and mechanics, suffer the biggest pay gap of all. They are paid close to 30% less than their male colleagues. That is an astonishing statistic.

The information that companies will start publishing next year will provide the most comprehensive account of the gender pay gap in this country. It can tell us where progress needs to be made—sector by sector, industry by industry—but only if a central independent watchdog is tasked with ensuring that that happens.

Today, girls are outperforming boys at school and university, but even at ages 18 to 21, women are paid less on average than young men of their age. When women hit their 20s, they are already 5p behind male colleagues. This gap continues to widen throughout women’s working lives, peaking when women reach their 50s when they can expect to earn just 73p for every male pound.