Women and the Economy

Debate between Jo Stevens and Angela Crawley

Wednesday 9th December 2015 Commons Chamber

[Angela Crawley]

I agree with my hon. Friend. As I said, I hope the Government will take serious action on tribunal fees, because they are acting as a barrier to women taking serious action against rogue employers in the workplace.

[Jo Stevens]

On the review of employment tribunal fees that is under way—I understand that the report is with the Minister at the moment—nothing in the terms of reference allows for consideration of the abolition of those fees. I questioned the Minister on that in a Westminster Hall debate last week. Does the hon. Lady agree that this is a gaping hole in the review’s terms of reference?

[Angela Crawley]

I agree, and I hope that the Government will take serious action and seriously consider the impact that tribunal fees have on women in the workplace. It is important for the House to acknowledge that, given the state of the economy. According to the Women’s Budget Group, women stand to lose more and gain less, especially women in low-paid work, women with children and other caring responsibilities, and women who access services that have been successively eroded in the name of austerity.

In considering the effects of the economy on women, the Scottish National party—the effective Opposition in the House—calls on the Government to recognise that their spending cuts adversely affect women more deeply than men; to understand that measures to remove services can and will drive women into a poverty trap; and to accept that the signs of economic recovery hailed by the Chancellor have in fact disproportionately benefited male workers.

The SNP welcomes the Chancellor’s decision to reverse the tax credit cuts. It must have been a tough decision for him, but it means that the constituents of Members on both sides of the House will not have to make even tougher decisions, choosing between the basic necessities of life. That is especially important to those in low-paid employment and on zero-hours contracts, who, more often than not, are women. The immediate result of the Chancellor’s reversal of his tax credit plans is that working families have far less to worry about, but there are still £12 billion of cuts in the spending review, and, ultimately, they will disproportionately affect women. The tax credit reversal means that women can worry less, but they will continue to worry as they struggle with rent and bills and are unable to keep up payments. Single mothers, raising children on their own, should not have to worry about such matters. However, I applaud the Chancellor for listening to his opponents here and in the other place, and reversing the tax credits decision.

In analysing the effects of the economy on women, we must consider the differences in employment trends according to gender. We must bear in mind that in the UK, 69% of women are employed, compared with 78.5% of men. While that difference is not overwhelming, there is a gender-related difference. Of those women in work, 8.4 million are in full-time employment and 6.2 million are in part-time work. The comparable figures for men show that the vast majority are in full-time employment. That means that 42% of the female workforce are in part-time employment, compared with 13% of men. Those figures expose massive gender inequality in the workplace. If we look more closely at the composition of women’s employment, we see that women are more likely than men to work as employees rather than employers, and are less likely to be self-employed. In fact, only 32% of all self-employed people are women.

Research carried out recently by the International Monetary Fund found that when women work, economies grow, and that economic growth is even more dramatic when the gap between women’s and men’s participation in the labour force is reduced. Given the current figures and in the absence of any increased effort to close the gender gap, we are putting our economy at a disadvantage. In 2014, figures showed that 1.1 million small and medium-sized enterprises in the UK were led by women—only 20% of the total. In October this year, it was reported that only 26% of FTSE 100 directors were female. That simply is not good enough. Women’s participation in the workforce should be safeguarded and encouraged. In short, the gender pay gap must be addressed.

The autumn statement confirmed the Chancellor’s acknowledgement that removing tax credits would not automatically correct the problem. I urge the Government to change tack and recognise that the right way to bring about economic recovery is to stimulate our workforce. In particular, they should ensure that our female workforce are protected, rather than forcing people into deeper poverty and decimating social welfare.

The £12 billion that will be cut from the welfare budget includes cuts in carer’s allowance, disability benefits and employment and support allowance. Given that child benefit is to apply only to a woman’s first two children, that will mean hardship for families, not to mention the absolutely abhorrent rape clause, which the Government have repeatedly failed to justify. The benefits to which I have referred are most frequently accessed by women. For example, 58% of carers in the UK are women; the figure rises to 60% when those who care for more than 50 hours per week are taken into account. Women make up 73% of those who receive carer’s allowance for caring for more than 35 hours per week.

In Scotland alone, there are an estimated 759,000 unpaid carers: a huge section of society. The work done by carers—people prepared to put aside their own needs to look after an ill or disabled loved one—must be recognised by all Governments. It is vital to our society, and can take up the time most people commit to full-time employment, which carers could otherwise be in.

Carers UK has found that, on top of caring for loved ones, carers are twice as likely to suffer ill health. These are certainly not the people who should be punished by the cuts to the welfare budget. In fact, we should be championing the efforts of carers in this country. When we consider the billions of pounds the NHS saves, year on year, due to the contribution and diligence of unpaid carers, it is time that the Government stood up and recognised the hard-working carers across our society. They contribute massively to our economy, a contribution that amounts to a net saving in the healthcare budget. Is this not exactly the sort of practice promoted by the Prime Minister under the concept of the big society? If so, it is unjust for the Government even to consider the removal of the carer’s allowance lifeline.

The Chancellor has again made a great deal of the economic recovery. However, the benefits of the recovery have been exclusively for men. I have spoken repeatedly in the House against the gender pay gap. At present, a woman takes home 85p for every pound earned by a man. That has a serious economic impact on working women and on our economy. Perhaps we are supposed to be pacified by the introduction of the new living wage, but it is by no means a living wage at all. As I have said, women are more often on zero-hours contracts and in part-time work, so a slight increase to the hourly wage will not help women who cannot work as many hours as men, perhaps due to caring or childcare responsibilities.

If we look at the people the Government are aiming to help, they are almost exclusively those on higher incomes. The Conservatives have cut income tax for all workers, most of whom are men, and increased the individual savings account allowance benefit for those with high savings, who, incidentally, tend to be men. The beneficiaries of the transferable tax allowance are 84% male. We have allowances for tax cuts largely for men. Where have such allowances come from? The welfare budget—in other words, services accessed mostly by women. These neo-liberal policies consistently deliver more for men than women. As the International Monetary Fund suggests, an increased gender gap restricts economic growth.

I want to highlight the fact that women are most harmed by the welfare cuts, and that the impact of austerity can be measured mostly in the loss of money in women’s purses and family budgets, and in their decreased spending power relative to men’s. I will leave the House with this thought: the report by the Women’s Budget Group stated that by equalising men’s and women’s participation rates, we could add more than 10% to the size of the economy. Let us not simply pay lip service. Let us deliver on that promise.