Sanitary Products Debate

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Department: HM Treasury
Thursday 30th March 2017

(7 years, 8 months ago)

Commons Chamber
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Jane Ellison Portrait The Financial Secretary to the Treasury (Jane Ellison)
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I congratulate the hon. Member for Dewsbury (Paula Sherriff) on her continuing and committed work in ensuring the affordability of sanitary products. During the passage of last year’s Finance Bill, she and I had reason to discuss this issue on several occasions, not least in relation to her successful amendment to reduce the level of VAT on sanitary products. I of course stand by the pledges the Government made at the time. Those pledges have been legislated for, as she knows and has acknowledged. I recognise, as I think all hon. Members do, the clear and evident passion with which she spoke, and we know how sincerely she campaigns for the rights of women and girls. I hope to be able to respond to some extent, if not to all her wider points, at least to some of the specific points she made.

Before I narrow down to the specific points, let me turn to the broader ones. The Government have been clear that tackling disadvantage is a priority for us. That includes taking action to help the most disadvantaged, with a real focus on tackling not the symptoms but the root causes of poverty. We are determined to reform the welfare system to incentivise work and to help people to achieve their potential. We believe that, as we have seen during the past six years, our reforms have helped to improve lives and living standards for some of the most vulnerable in our country, most prominently by helping people to get back into work.

That is why in our approach to general taxation we are increasing the personal allowance to £12,500 by the end of this Parliament. Next week, increases in the personal allowance and higher rate threshold will have cut taxes for 31 million people and taken 1.3 million of the lowest paid out of income tax altogether, compared with 2015-16. A significant proportion of them will of course be women. Next week, we will increase the national living wage to £7.50 an hour, which marks a £1,400 a year increase in earnings for a full-time worker on the national minimum wage since the introduction of the national living wage in April 2016. It is also why we are reducing the universal credit taper to 63% from April, so people who progress into work can keep more of what they earn, which will enhance the support provided to working families in meeting day-to-day costs; why we will double free childcare to 30 hours a week, which is worth up to £5,000 a year for eligible working parents of three and four-year-olds; and why we will introduce tax-free childcare in the coming month. These are just some of a range of measures that we are taking to ensure that work always pays and that hard-working families can earn more and keep more of the money they earn. It is by taking these steps that we are supporting ordinary working families, including the women about whom the hon. Lady spoke.

Let me turn to the tampon tax fund, because we have had a timely update from the Under-Secretary of State for Culture, Media and Sport, my hon. Friend the Member for Reading East (Mr Wilson), who is the Minister for Civil Society. I will take a moment—I think I have enough time—to update the House on some of the work that the fund is going to support. That is important, not least in the light of the hon. Lady’s successful campaign to change the law so that we reduce VAT, as soon as we practically can, as has been mentioned, within the constraints of EU law. In the meantime, we have established the £15 million a year tampon tax fund, which, as hon. Members will know, is equivalent to the amount of VAT paid on sanitary products each year.

Since the 2015 autumn statement, £32 million of tampon tax funding has been allocated to women’s charities. The majority of that funding is through grants to frontline charities that aim to improve the lives of disadvantaged women and girls. Those include health, wellbeing and education initiatives and support services for vulnerable women. A significant proportion of this round’s funding will focus on initiatives that help to tackle violence against women and girls—something that all of us across this House want to see borne down on—alongside a broader criterion to support disadvantaged women and girls.

Jason McCartney Portrait Jason McCartney
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I saw today’s update on where the tampon tax funds have gone. Rather than point scoring, I want something positive to come from this debate. Will the Minister please consider using some of those funds to help with supplies of sanitary products for schools, to make sure that all girls, no matter what their economic background, have access to tampons, pads and towels?

Jane Ellison Portrait Jane Ellison
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I will certainly draw my hon. Friend’s comments to the attention of my hon. Friend the Member for Reading East, the Minister for Civil Society, and I will come to some of the support available in schools and the work already under way as a response to recent questions in Parliament.

My hon. Friend the Minister for Civil Society has today announced the full list of funding for charities from the latest round of the tampon tax fund. That means that more than 90 charities are now set to benefit from the fund over this Parliament. The fund continues to benefit organisations in every corner of the UK, from Children North East to the Women’s Rape and Sexual Abuse Centre in Cornwall. It is helping to improve the lives of women and girls who suffer disadvantage, supporting our wider ambition to create a fairer society for everyone.

Paula Sherriff Portrait Paula Sherriff
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I recognise that some excellent charities are receiving funds from the tampon tax, including Jo’s Cervical Cancer Trust, which I have been working with very closely. How will those charities be provided for when we finally see the abolition of the tampon tax, which I hope will come very soon?

Jane Ellison Portrait Jane Ellison
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Indeed; that is something we have explored in debates. We said at the time that while this is inevitably a time-limited fund by its nature, we will look at all those issues in the round. It is, of course, only one of a number of sources from which we support civil society organisations. I am glad that the hon. Lady picked out Jo’s Cervical Cancer Trust, a charity that I greatly enjoyed working with when I was at the Department of Health and that does excellent work.

A number of worthwhile organisations are going to benefit from the money, and the Government have committed to continuing the fund until EU rules allow a zero rate of VAT to be applied on women’s sanitary products, or until the UK leaves the EU—whichever comes first within the legal framework. The hon. Lady mentioned this in her speech, but I note that she has recently championed national retailers in her constituency to support the cause through charitable means, as she has outlined today, for those least able to afford sanitary products. I noted her work with her local Boots on that.

Turning to practical matters, like hon. Members on both sides of the House, I, too, heard the same BBC Radio Leeds report that has been referred to. It was a distressing listen. It was very difficult to hear about the girls in Leeds who were unable to attend school because they could not afford sanitary products. Of course, if this country is going to work for everyone, we clearly need an education system that enables people to achieve their potential. That is the Government’s clear aspiration. If someone cannot attend school on the days that they are having their period, it is obviously much harder for them to reach their potential.

My hon. Friend the Member for Colne Valley (Jason McCartney) talked about school funding. Schools do have discretion over how they use their funding. The Department for Education does not currently give schools guidance on this specific issue, as we believe that headteachers should be able to use their professional judgment. However, we do encourage all schools to use their resources to support their pupils to be safe, healthy and ready to learn each day, so schools are free to support girls in this way if they need to. The evidence is clear—we have all seen that every extra day of school missed can affect a pupil’s chances of achieving good GCSEs, with a lasting effect on their life chances. We therefore strongly encourage all parents and schools to do everything they can to support children to attend schools.

The hon. Member for Dewsbury made a number of suggestions about funding. As one would expect, that question has been raised in recent days by a number of hon. Members. In fact, in response to the hon. Member for Leeds North West (Greg Mulholland), the Secretary of State for Education acknowledged the importance of the issue and said that she is looking carefully at it, and she has undertaken to write to him. I think there is more to be said by the Department for Education on this subject. The Secretary of State was very clear about the seriousness with which she takes the issue and her own commitment to gender equality is well documented.

We touched on the support available through the education system and the wider welfare system. We talked about the legal commitment we have made to zero-rating sanitary products as soon as possible, fully recognising the importance of the issue. In the meantime, we are using the VAT we receive to benefit women’s charities. I hope those responses go some way towards addressing the issues raised in the debate.

More widely, I believe the Government can hold their head up high on supporting women. The gender pay gap is at a record low and the number of women in work is close to a record high. We are one of the first countries in the world to introduce gender pay gap reporting, but we always acknowledge that we can go further. As I mentioned earlier, the national living wage will be increased to £7.50 an hour from next month. We expect that two thirds of those who will benefit from the rise in the national living wage will be women.

As well as continuing our efforts to get more women back into the workplace, we are providing an additional £20 million of funding over this Parliament to support organisations working to tackle domestic violence and abuse—a strong personal priority for the Prime Minister. She has committed to bringing forward a domestic violence and abuse Bill. The funding I have just mentioned increases the total funding for the Government’s violence against women and girls strategy to £100 million over this Parliament.

The hon. Lady raised the additional vulnerability of homeless women, which I think we all acknowledge. In October, the Prime Minister announced a new £40 million programme to provide an innovative approach to tackling homelessness, with prevention at its heart, looking at the complex underlying causes that I think all of us as constituency MPs acknowledge can lead to a person losing their home. That includes a £10 million rough sleeping prevention fund and £20 million for local authorities to trial new initiatives for those most at risk. I will draw the hon. Lady’s particular concerns about the additional vulnerabilities of homeless women to the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Nuneaton (Mr Jones).

All in all, the Government are committed to supporting those who are struggling to get by. I congratulate the hon. Lady on bringing this important issue to the attention of Parliament. We feel that by taking steps to improve the living standards of ordinary working families across the country, committing to eliminating the VAT charge on sanitary products, and striving to provide greater equality more generally for women, the Government are showing they are sensitive to these issues. There are 200,000 fewer children in low-income households than in 2010, which is one of the ways in which we have demonstrated our commitment to tackling the root causes of disadvantage. I hope that in my response today I have shown that the Government take these issues seriously. We are looking carefully at the points raised today and will aim to respond further to them.

In closing, I echo the words of the hon. Lady in paying tribute to the actions of many of the staff of the House in recent days, and in wishing you, Madam Deputy Speaker, as well as hon. Members on all sides and all staff of the House, a restful Easter recess.

Question put and agreed to.