Women and the Economy

Ian Blackford Excerpts

Wednesday 9th December 2015 Commons Chamber

[Caroline Dinenage]

My hon. Friend is absolutely right. These people make an incredible contribution to our economy and need to be supported in everything they do.

Not only are more women in work than ever before, but we are taking steps to ensure that work always pays. The national living wage, beginning next April and reaching more than £9 by 2020, will disproportionately benefit women. We expect that 65% of the beneficiaries made financially better off will be women. Further increases in the personal allowance will lift 660,000 people out of income tax by 2018, and 60% of them will be women. This reform, too, will make women financially better off.

We also have more women than ever right at the top of business. These fantastic role models are inspiring others to follow in their footsteps. Thanks to the business-led, Government-backed approach and the passion of business leaders such as Lord Davies, we have doubled the number of women on FTSE 100 boards since 2011.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

The Minister trumpets the fact that women will disproportionately benefit from the higher so-called living wage that the Government are bringing in. Does she not recognise that the reason more women will benefit from an increase in the minimum wage is that there are more low-paid women?

[Caroline Dinenage]

The hon. Gentleman could not have put it better. These are the women who, as I have said, were educated under the last Labour Government. Under our education reforms, these are the women who will be aspiring to higher paid work in the future. When Labour left power, there were more than 20 all-male boards in our FTSE 100 companies. Now, there are none.

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[Seema Kennedy (South Ribble) (Con)]

It is a pleasure to follow the hon. Member for Sunderland Central (Julie Elliott). I have listened carefully to the contributions to the debate, and particularly to that of my right hon. Friend the Member for Basingstoke (Mrs Miller). The motion is very wide and covers a lot of matters, but I shall focus on a couple of them. The first relates to infrastructure investment. Labour Members have spent a lot of time in this Parliament and the previous one talking about productivity, and they often use examples such as France. We could have a debate about whether the productivity figures they cite reflect the fact that we now have record numbers of people in work and those other countries have more unemployed people, but productivity is a challenge of our time, and I am glad that the Government and my right hon. Friends the Business Secretary and the Chancellor have recognised that in their productivity agenda. Labour Members talk about the proposals for infrastructure investment, saying that they are predominantly focused on sectors that typically employ more men than women.

If we look at the autumn statement, we see that we are talking about building roads, railways and flood defences. We are investing in the arteries of the country, but unfortunately at the moment these areas are still dominated by men—roads still tend to be built predominantly by men. I have met more and more women apprentices. I have employed them, in my former life, in the building trade and we want to see more of them. We are setting off down a wrong track if we say that investing in infrastructure will not benefit the whole country. Surely the whole premise of this debate, and of what the Government and all of us here are doing, is that we should be building a stronger country for not only our daughters, but our sons—unfortunately, I do not have any daughters but I do have sons. That should be for all of us.

I was slightly puzzled that the Labour party spent a long time attacking us on productivity, because when we try to do something about it, Labour Members say we are discriminating against—

[Ian Blackford]

The hon. Lady is right to reflect on the fact that between 2008 and 2014 productivity did not increase in the UK. What policies does she think will improve productivity over the next five years?

[Seema Kennedy]

I suggest that the hon. Gentleman reads the productivity agenda that was written in July, as he will see some good activity there. Productivity is the challenge, and if we want to compete in the global economy, we have got to be investing in this area. For his benefit, I should say that the report was called “Fixing the foundations”.

Another part of the same bit of the autumn statement deals with investing in education and in childcare, sectors where a lot of women are employed; childcare does not just benefit those women who can go out to work. We have got more childcare promised in the autumn statement. Those industries predominantly employ women, but again we need to be thinking about men working in them as well. We need to stop this divisive conversation that says, “Only men can be builders and women can look after children.” All of us, particularly those of us who are mothers, know how much we rely on our husbands and partners.

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[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I thank my hon. Friend the Member for Stretford and Urmston (Kate Green) for opening today’s debate. It is also a pleasure to follow the hon. Member for Portsmouth South (Mrs Drummond),as I hope to work with her on the new all-party parliamentary group on women and work.

Women form over half the UK population, yet their contribution to the economy is sadly not equal, and I fear that, thanks to the decisions of this Government, they will form an even smaller contribution to the economy. The right hon. Member for Basingstoke (Mrs Miller), under whom I have the honour to serve on the Women and Equalities Select Committee, said that we cannot address many of the issues raised in this debate without a stronger economy. My question is, how will the Government ensure that women benefit equally from the economic growth that they predict? Far too many women feel that they are not benefiting from whatever growth may be taking place now.

According to the Women’s Budget Group, pursuing deficit reduction on the back of women—particularly lone mothers and single female pensioners, who are the most affected—is just plain wrong. If the Government had the slightest interest in fairness, they would conduct a detailed impact assessment and a review, and, if they were prepared to do so, they would revise some of their decisions as a consequence.

Why does there need to be a women’s perspective on the economy? Let us look at pay. My hon. Friend the Member for Stretford and Urmston once told us about a meeting that she had had with a group of women in Camden who had recently been granted the living wage—the true living wage. One of the women had said that those extra few pounds an hour enabled her to save a bit of money each month, and that she hoped eventually to save enough to go on holiday with her family. Those extra few pounds meant a great deal to her, because she had never had a holiday before.

Moreover, the little impact of the payment of a living wage by that woman’s employer was not only good for her and for her colleagues, but good for the company for which they worked, because the resulting increase in staff satisfaction led to higher retention rates. The company had generally found that 40 vacancies needed to be filled, but this year they needed to fill only two. Moreover, the change benefited not just that woman, her colleagues and their families, but the local economy where she lived, and the economy of whatever area she visited when she went on holiday, which may have been a part of the United Kingdom that depends on the pounds that are spent by holidaymakers.

The fact that a large section of our workforce are on low incomes that the Chancellor’s changes will not address is not only bad for women, but bad for children, bad for business and bad for the economy, both local and national. As the economy is the underpinning element of the debate, I shall now quote from an important document. It states:

“Ensuring that women achieve their full potential will have a significant impact on our economy:

Equalising women’s productivity and employment to the same levels as men’s could add almost £600 billion to our economy. This could clear a third of our national debt.”

Who said that? In fact, it was in the foreword to the Government’s consultation paper on the gender pay gap, which was written by the Minister for Women and Equalities, the right hon. Member for Loughborough (Nicky Morgan).

I am pleased to note that the Government have taken some lessons from the last Labour Government, including the lesson that, for most women—especially women on low pay—childcare is a barrier to labour market participation. However, if Members want to hark back to the awful days of previous Governments—as some did earlier—I am happy to oblige. My children were under-fives under the last Conservative Government, in the mid-1990s, and we had to pay our childminder out of our after-tax income. At that time, many women, especially lone parents, were effectively excluded from the job market. The Labour Government introduced tax credit, childcare vouchers and the Sure Start initiative.

We welcome the spirit of the current Government’s Childcare Bill, which offers five hours a week more childcare than the Labour manifesto, but, unlike the Labour offer, the Conservative offer was initially underfunded, and there are still a great many questions to which the Government must respond if they are to persuade us that that childcare will be flexible and affordable.

[Ian Blackford]

rose—

[Mr Speaker]

Order. The shadow Chief Secretary must begin her speech at 6.40, but the hon. Gentleman can speak briefly now.

[Ian Blackford]

(Ross, Skye and Lochaber) (SNP): I want to raise, very briefly, the issue of unfairness to women and pensioners. Today, at the Institute for Government, the former Pensions Minister said,

“we made a bad decision”,

referring to state pension age rises. I think that many of us would agree with that statement, especially in the light of previous pension age changes which allowed a transition period of 15 years. Women are being penalised by the fact that the period is only five years for the current changes. Will the Government urgently recognise that this is a wrong that must be righted? Women must be protected. The Government must act now.

[Mr Speaker]

Splendid succinctness by the hon. Gentleman, upon which he is to be congratulated.

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[Harriett Baldwin]

I will make some progress. We want to make sure that the pay gap narrows further and faster. From next year, we will require large companies to publish differences in pay.

[Ian Blackford]

rose—

[Harriett Baldwin]

I do not have much time, so I will make a bit of progress. Some 56% of the people who have been taken out of income tax altogether—in other words, who have had a 100% reduction in their income tax—through our increases to the personal allowance are women. Some 58% of those who receive the state pension are women—I will address the point made by the hon. Member for Worsley and Eccles South (Barbara Keeley) in a moment—and we have protected that under the triple lock. Almost two thirds of the people who will benefit from our introduction of the national living wage are women. Since 2010, women’s employment has increased faster than in the three previous Parliaments combined.

Let us compare and contrast that with the record of the previous Labour Government, under which the number of unemployed women rose by more than 200,000, or 25%. The fastest way to damage the livelihoods of hard-working women and families is to lose control of the public finances. That is the damage that we have had to fix, and we are making sure that that catastrophic situation does not happen again.

I want to address some of the important points raised today in a range of speeches—speeches from the hon. Member for Lanark and Hamilton East (Angela Crawley), my right hon. Friend the Member for Basingstoke (Mrs Miller), the hon. Member for Sunderland Central (Julie Elliott), my hon. Friend the Member for South Ribble (Seema Kennedy), the hon. Member for Paisley and Renfrewshire South (Mhairi Black), my hon. Friend the Member for Eastleigh (Mims Davies), the hon. Member for Mitcham and Morden (Siobhain McDonagh), my hon. Friend the Member for Dudley South (Mike Wood), the hon. Member for Wirral South (Alison McGovern), my hon. Friend the Member for Lewes (Maria Caulfield), the hon. Member for Worsley and Eccles South (Barbara Keeley), my hon. Friend the Member for Portsmouth South (Mrs Drummond), the hon. Member for Brentford and Isleworth (Ruth Cadbury) and the hon. Member for Ross, Skye and Lochaber (Ian Blackford).

A number of people have mentioned part-time work. It is worth remembering that 80% of the people who work part time do so because they want to. However, I agree wholeheartedly with the Chair of the Women and Equalities Committee, my right hon. Friend the Member for Basingstoke, who said that she wanted greater equality in the form of more men working part time. There is evidence that that is beginning to happen, enabling parental leave opportunities to be shared more equally.