Gender Pay Gap

Debate between Helen Whately and Jess Phillips

Wednesday 5th December 2018 Westminster Hall

[Helen Whately (Faversham and Mid Kent) (Con)]

Thank you, Sir David. I congratulate the hon. Member for Walthamstow (Stella Creasy) on securing this debate and on her speech, which she delivered with characteristic passion and peppered with huge quantities of data. I start by reflecting that the gender pay gap is at an historic low of 8.9%. We should acknowledge that, but also that it persists—we do not want it to persist; we want it to close and to end up without a gender pay gap—and that practically, most women’s incomes are still hit by having children.

When I was a new mum, I was lucky; I had a supportive employer that allowed me to work flexibly. It was working hard to encourage women to stay at work, having children, and to move up the organisation. I benefited from that, but I recognise that a huge number of women do not have that. In fact, only 11% of jobs that pay more than £20,000 are advertised with flexible working as an option, while the demand is estimated to be closer to 90%. That means that many women are not able to continue working in the job they were working in, and have to make choices that are not the ones they want to make. We know that by the time a couple’s first child is aged 20, mothers are earning on average nearly a third less than fathers.

[Jess Phillips]

Does the hon. Lady agree that one way we could stop some of these problems with the gap between men and women would be to pay men more to stay off work? If we gave men 90% of their pay for the first six weeks of their baby’s life, as we do with women, it might encourage a different atmosphere. Does she agree?

[Helen Whately]

I will say a bit more about maternity and paternity pay later, but we absolutely must ensure that it is equally possible for men to take time off work when they become new dads, and that there is a more equal sharing of childcare responsibilities between mums and dads. One reason why that is not happening is that there are financial barriers to doing so.

I acknowledge the work that the Government are doing to tackle the gender pay gap. For instance, last year it was made mandatory for companies with 250 or more employees to report their gender pay gap. There was some speculation at the time as to the difference that would make, and that companies would not bother to comply. I imagine the Minister will confirm this, but my understanding is that there was 100% compliance and that companies did report it, even if it often did not reflect very well on them. That reporting is making a difference. I checked on what my previous employer was doing, because its reporting did not make it look that great. It did a whole report about the actions it was going to try to take to close the gender pay gap on the back of that reporting. If companies across the country are all doing that, that will make a difference. Now that we have had large companies do that, I am keen to see smaller companies do the same.

The headline point is that it makes good economic sense to close the gender pay gap. It makes sense for companies. We know that companies with greater gender equality do better. They perform better for their shareholders, it is good for their reputation and it helps them attract better candidates. When companies are struggling to recruit for the skills they want, clearly they need to ensure that they attract good women as well as good men. Greater gender equality also makes economic sense for the whole country. If we fail to make the most of the capabilities of women, we are failing to make the most of half the country’s workforce.

It is not just about women, however. Making things better for women has knock-on benefits for men, too. I know lots of dads who wish they had been able to spend more time with their children in the early years. Shared parental leave was introduced by the Conservative-led Government in 2014 to enable dads to do exactly that, but as Members have alluded to, there are barriers to men’s taking up paternity leave. There is more to be done to ensure much more equal taking up of maternity and paternity leave, to help dads play that greater role in their children’s early years and mums to keep their careers going.

I welcome the fact that the Government are looking at placing the onus on companies to assess whether a job could be done flexibly, and to make that clear when advertising it, rather than just relying on people—particularly women, but men too—coming forward asking for their job to be flexible. Anecdotally, I have heard that it is men who come across particular barriers when asking for a job to be flexible. We need to address that, too. I would also like to see greater transparency from large companies in publishing their parental leave and pay policies, so that they are absolutely clear to potential job candidates. There is a whole question around maternity discrimination, which we know is illegal, but is still pervasive. Too many women are forced out of work, whether that is having to take maternity leave early because they are pregnant, being made redundant while on maternity leave, or one way or another finding that they are unable to return to the workplace after having children.

Just to sum up, bearing in mind the time, I urge the Government to keep on pushing to close the gender pay gap. I urge them to keep pushing employers, business, the public sector and Parliament itself to do better.