Women and Low Pay

Neil Gray Excerpts

Wednesday 18th November 2015 Westminster Hall

[Neil Gray (Airdrie and Shotts) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Howarth. I congratulate the hon. Member for Brentford and Isleworth (Ruth Cadbury) on securing this important Westminster Hall debate. I welcome her noteworthy and impressive contribution, as well as the contributions from other Members who have spoken.

The hon. Lady said that there has been a focus on high-paid jobs. It is important that women are given equal representation in high-paid jobs—and in boardrooms, political parties and Government Cabinets—so I can understand why she makes the point, but I think it is important that we focus on both high-paid and low-paid jobs. She highlighted the fact that three out of five jobs in minimum wage work are held by women. I have to admit that I was not aware of that startling figure, but I am glad that she raised it. That is why sorting equal pay claims from councils across the country is so important.

The hon. Lady highlighted the issue of the damaging branding of the Chancellor’s minimum wage premium as a national living wage. It is not national—it is only available to over-25s—and it is not a living wage; it falls way short of the Living Wage Foundation’s independently set living wage, which is calculated based on the cost of living. She mentioned that having a gender pay gap is bad for business. The statistic that she used to highlight that is absolutely correct and it is worth sharing it again: if we were to equalise the gender pay gap, we would boost productivity by an estimated £600 billion in this country. Frankly, that is astonishing. I thank her again for securing the debate.

The hon. Member for Worsley and Eccles South (Barbara Keeley) raised a number of very important points about problems with pensions, particularly for women born in the 1950s. Those issues were discussed just yesterday in a Westminster Hall debate secured by my hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford). The hon. Member for Coventry South (Mr Cunningham) made very important points during that debate, as well as during this one. The hon. Lady, on behalf of the WASPI campaign group, made some very important points, which I welcome and which are supported by SNP Members.

My hon. Friend the Member for Lanark and Hamilton East (Angela Crawley) made a typically powerful speech. She made the point that gender equality is not a dream and should not be a dream. It needs to be a reality. She also said that women get paid two months short compared with their male counterparts.

[Margaret Greenwood]

Some years ago, I was fortunate enough to have a job teaching on a “women back to work” programme. The vast majority of the women were divorced. It was a really fantastic experience for me to see how quickly they improved their skills and educational base in a very short space of time. Does the hon. Gentleman agree that it is very important to provide training and educational opportunities for women—not just women in employment, but those who are unemployed, so that they can get back to work and generate the kind of economic activity that will boost their life chances?

[Neil Gray]

Absolutely. There is nothing that I can disagree with in that intervention, and I will come to some of those issues later in my speech.

Returning to the contribution from my hon. Friend the Member for Lanark and Hamilton East, the gender pay gap still exists even in what would be traditionally or stereotypically described as “female jobs”. That is still wrong and needs to be addressed. No man wants to see his daughter suffering a gender pay gap—that is absolutely right. I speak as a the father of a one-year-old daughter who I hope will go on to employment where she will earn the same as her male counterparts, so I stand here today on that basis.

The hon. Member for Coventry North East (Colleen Fletcher) effectively highlighted the issues of gender inequality in her city of Coventry. Again, I highlight the contribution made by the hon. Member for Coventry South, who, as I said, also made noteworthy contributions to the debate on pensions yesterday.

It is disappointing that in 2015 we are still discussing matters of gender equality. Nevertheless, it is important to take cognisance of the fact that a real pay gap between men and women remains. Low pay affects women disproportionately. In 1999, the gender pay gap for full-time employees in Scotland stood at 16.7%, but by 2014 it had been reduced to 9%, and it is 9.4% in the rest of the UK. This year, the Scottish Government launched the Partnership for Change programme, wherein public, private and third-sector organisations make a voluntary commitment to work toward a 50:50 gender balance on their boards by 2020. As of 9 November, 160 organisations and businesses have signed up, which I am delighted to see, although more work is clearly needed. On this year’s equal pay day, 9 November, First Minister Nicola Sturgeon pledged to do everything she can to advance equal pay and gender equality in Scotland as part of the Fawcett Society’s pay gap pledge campaign. The First Minister has been leading the way on the issues, starting clearly and publicly with her 50:50 gender balanced Cabinet.

Many women shoulder a disproportionate amount of childcare or family responsibilities, and they are unable to take up promotion and other opportunities because they do not have alternative care arrangements. The Children and Young People (Scotland) Act 2014 provides further assistance to women and young families by providing that all three and four-year-olds and the most disadvantaged two year-olds are entitled to 600 hours of early learning and childcare. By the end of the next Parliament, the Scottish Government will have doubled the hours from 16 to 30 per week. Increasing childcare will not only improve outcomes for children, but support more women into work.

The Scottish Government have also provided Skills Development Scotland with additional funding as part of a wider £3 million allocation in 2014-15 to develop a range of equality activities, including tackling gender segregation. The Scottish Government are doing all they can with the tools on offer to provide tangible improvements.

[Angela Crawley]

Does my hon. Friend agree that providing Scotland with powers over the minimum wage and welfare, which still sit with this House, would allow Scotland to address needs and ensure that inequality is abolished in Scotland?

[Neil Gray]

Absolutely—I wholeheartedly agree with my hon. Friend.

In Scotland, councils are now responsible for meeting legal obligations to their employees, including on equal pay, but clearly more work needs to be done. My hon. Friend highlighted the issues in South Lanarkshire. My constituency falls under North Lanarkshire Council’s jurisdiction. The council has been embroiled in a long-running and legally very costly equal pay dispute in which the council has dragged equal pay claims through the courts for several years. That is utterly shameful and needs to be addressed urgently. All equal pay cases need to be resolved with urgency and commitment, so that those affected receive their legal entitlement. Again, I am making the point not on a party political basis, but on the basis of doing what is right by our workers.

To conclude, despite the passage of the Equal Pay Act 45 years ago, more work needs to be done to address low pay. Although it is important to recognise that female employment in Scotland is at record levels, that the gap between male and female employment is at its smallest ever, and that the gender pay gap is smaller than in the rest of the UK, a great deal of work remains to be done to ensure women receive parity with their male colleagues. Low pay for women is both a symptom and a cause of gender inequality. We must do all we can to eradicate the gap between men and women to create a fairer and more prosperous society.