Women in Wales Debate

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Department: HM Treasury
Tuesday 16th July 2013

(11 years, 5 months ago)

Westminster Hall
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Jessica Morden Portrait Jessica Morden
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My hon. Friend makes a valid point. Young families, in particular, will be hit by the cumulative impact of the loss of the child care element of tax credits, the child trust fund and maternity grants.

In Wales, most part-time jobs are undertaken by women; 27% of public sector employees work part time and 85% of those are women. Although it is true that many women want to work part time, many others have no choice.

Mark Williams Portrait Mr Mark Williams (Ceredigion) (LD)
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I have some sympathy with many of the points that the hon. Lady has made on the welfare reform agenda. On child care, does she acknowledge that the Government have announced a constructive package that will help many young mothers? The figures suggest that 5,700 people in Newport would benefit. Child care is a particular problem, and the Government are taking action. In a spirit of fairness, I am sure that she would acknowledge that that should be recognised.

Jessica Morden Portrait Jessica Morden
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As far as I can see, the action on child care is too little, too late. Many families in my constituency are struggling with huge child care costs, which are bigger than those in many countries around the world. The Government’s proposals will take time to filter through and will have no immediate impact on those families. In addition, the little bit of help that has been provided for child care is totally offset by the huge cuts to tax credits.

According to the Bevan Foundation report “Women, Work and the Recession in Wales”, the number of people in Wales who work part time because they were unable to find a full-time job has increased by 79% to one in five of all part-timers. In addition, the burden of unpaid work still falls on women. Child care responsibilities or caring for older people mean that many women have little choice but to work part time. Contrast the difference between the Labour Government in Cardiff, who are doubling the number of Flying Start places despite losing £1.4 billion from their budget, with the coalition in Westminster, who have cut the child care tax credit by up to £1,500 a year for low paid women while giving millionaires a tax cut of £2,000 a week.

In Wales, women make up two thirds of public sector employees, so the steady and sustained attack on jobs in the public sector has affected women disproportionately. In addition, the pay freeze has worsened the pay gap between men and women; the full-time pay gap now stands at 14.9%. In many parts of Wales, particularly in places such as my constituency, the public and private sectors are completely intertwined. If money is taken from public sector workers, less money will be spent in the local economy, which in turn hits the private sector. By affecting so many women in such a way, the Government are directly affecting the Welsh economy.

The living wage is one that meets the requirements for a basic quality of life and reduces families’ reliance on Government programmes for additional income. In 2012, it was calculated that 24% of all working women earn below the living wage and 62% of those earning less than the living wage are women. How do we stand in Wales? Wales has the second-highest proportion of people earning below the living wage in the UK, the highest proportion of part-time workers earning below the living wage and, at 44.5%, the highest proportion of female part-time workers earning below the living wage.

In Wales, many women are on zero-hour contracts, which were the subject of a debate secured by my hon. Friend the Member for Sunderland Central (Julie Elliott) in this Chamber last week. Recent UK estimates suggest that 97,000 people in Wales have such contracts, of which at the very least half will be women. I know from bitter experience, however, that Government answers to parliamentary questions on the matter are difficult to come by.

Labour wants universal credit to work, but even the impact assessment by the Department for Work and Pensions states that

“second earners may choose to reduce or rebalance their hours or leave work.”

As a result of pay inequality and time taken out of the labour market to raise children, fewer women tend to be primary earners in their households, so the policy will simply not work for many women. In addition, many people are concerned that women will be sanctioned because they struggle to find the child care to enable them to take a job. That question was raised in the Welsh Affairs Committee inquiry into the Work programme.

Government cuts are not only affecting women disproportionately but cutting off access to advice and legal support. At the same time as all the changes are being made to benefits, swingeing cuts are being made to advice services. Organisations such as Citizens Advice, Shelter Cymru and Consumer Focus Wales provide such services, but the sector is expected to lose approximately £3.36 million from various sources over the next 18 months, which is the equivalent of 50 full-time jobs. In fairness, the Welsh Government have recognised the importance of such services and recently provided £1.8 million of extra money to allow the organisations to adapt to the increased demand for their services.

My local citizens advice bureau in Newport, which does excellent work, has had 745 more cases this year than last, but that tells us only part of the story. The citizens advice bureau can only deal with the numbers for which it has funding and advisory capacity. The staff know that more demand exists, but they cannot meet that demand without additional funding. That is happening at a time when people need more help than ever before. As we all see in our surgeries, demand increases every week.

The changes to legal aid demonstrate yet again that the Government are willing to make cuts irrespective of their impact. I am already seeing heartbreaking cases in my surgery following the cuts to some family and civil legal aid. One mother of three children came to see me because her ex-husband had refused to return one of the children after a stay. The father has a high income but the mother is in receipt of benefits, so she sought legal advice but was informed that she does not qualify for legal aid. Because both parents are considered good parents, a court case will be required to solve the issue, but she does not have the money to pay for it. Her husband can have a solicitor but she cannot. She told me that

“the poor no longer have recourse to justice, only the well off.”

Unfortunately, she appears to be right.

Many victims of trafficking and domestic abuse will no longer be eligible for legal aid. According to research by Rights of Women and Welsh Women’s Aid, half of all domestic violence victims will not qualify for legal aid to help them and their children safely to separate from abusive relationships.