Equality: Autumn Statement

Sarah Champion Excerpts

Wednesday 14th December 2016 Commons Chamber

[Sarah Champion (Rotherham) (Lab)]

I beg to move,

That this House notes with concern the disproportionate impact of the Government’s policies on women; further notes that, as a result of proposals in the 2016 Autumn Statement, 86 per cent of net savings to the Treasury through tax and benefit changes since 2010 will come from women, according to the House of Commons Library; notes with concern analysis from the Women’s Budget Group which states that by 2020, in every income group, black and minority ethnic women will lose the greatest proportion of their individual income and that low income black and Asian women will lose around twice as much money as low income white men as a result of tax and benefit changes; and calls on the Government to affirm its commitment to ensuring that women and protected groups are not disproportionately affected by tax and benefits changes, to conduct an urgent assessment of the cumulative impact of its policies on women since 2010, to take the necessary remedial steps to mitigate any disproportionate burden of tax and benefits changes on women, to publish a full equality impact analysis with the 2017 Budget and to develop and publish a gender equality strategy to improve the position of women over the remainder of this Parliament.

It is a pleasure to be here today to discuss this important topic. The advancement of equal rights for women is often associated with certain historical milestones, such as the right to vote, the movement to end violence against women and girls, and reproductive rights. Although those are obviously hugely important, the key facet of the ongoing battle for gender equality is gender economic equality. Many women never question their right to open a bank account, own property, or even buy wine or beer in a pub, but those rights, now taken for granted, were actually hard-won. For much of history, and even up to 40 years ago, women were not allowed to handle money, and having a job was seen as a sign of financial desperation. It was only in the 19th century that women were allowed to own their own home. Until the Married Women’s Property Act 1882, common law in Britain deprived women of the right to keep their own property or even hold their own money. As late as the 1970s, working women were refused mortgages in their own right, and were only then granted mortgages if they could secure a male guarantor. It is only since 1980 that women have been able to apply for credit in their own name, and it was not until 1982 that women were allowed to spend their own money in pubs with the confidence that they would actually be served.

Those changes involved fearless and outspoken people challenging the status quo, questioning out-of-date assumptions, and pushing Governments and society to the realisation that economic equality and independence for women must be the norm. Today, Labour is pushing for the next step in this battle for economic equality: for the Government to ensure that their policies advance, rather than hinder, progress. Unfortunately, all the evidence points to the Conservative party turning back the clock on gender economic equality, and nowhere has that been more apparent than in their major financial announcements, such as the autumn statement.

Research from the House of Commons Library, commissioned by Labour, has revealed that as of the most recent autumn statement, 86% of net savings to the Treasury through tax and benefit changes since 2010 will have come from women. That figure is up on the one at last year’s autumn statement, which was 81%, but remains the same as the one at the Budget earlier this year. Someone who happens to be a woman from a black or minority ethnic background is set to lose out even more under this Government. Joint analysis from the Runnymede Trust and the Women’s Budget Group has shown that low-income black and Asian women are paying the highest price for this Government’s failed austerity agenda.

[Gloria De Piero (Ashfield) (Lab)]

Does my hon. Friend agree that when we talk about the disproportionate cuts affecting women, what that so often means in practice is their children going without? That is why we have seen a huge spike in child poverty, reversing all the good work that the last Labour Government did.

[Sarah Champion]

My hon. Friend, who has long been a campaigner in this area, is absolutely right about that. I do not understand why people do not consider the economic impact on the entire country if we hold back certain sectors of our population.

[Lucy Frazer (South East Cambridgeshire) (Con)]

Does the hon. Lady accept that more women who have children are in work in this country than in the rest of Europe?

[Sarah Champion]

That is a wonderful thing, and what we want is for them to reach their full economic potential, rather than, as happens at the moment, getting paid less than they ought.

The analysis shows that by 2020, individuals in the poorest households will lose most from tax and benefit changes, but in every income group, BME women will lose the greatest proportion of their individual income. Low-income black and Asian women will lose around twice as much money as low-income white men as a result of tax and benefit changes. The Women’s Budget Group has also highlighted analysis showing that disabled people are losing significantly more as a result of those changes than non-disabled people, and disabled women are losing more than disabled men. According to its analysis, disabled men are losing nine times as much income as non-disabled men. Disabled women are losing twice as much income as non-disabled women. By 2020, families with both disabled adults and disabled children will lose more than £5,000 a year as a result of tax and benefit changes, as well as services to the value of nearly £9,000 a year as a result of Government cuts to services. Do Ministers believe that that figure is acceptable and in line with assertions from the Prime Minister and the Chancellor that their party is the champion of equality and fairness? We know that Budgets and policy decisions are simply not gender-neutral.

[Suella Fernandes (Fareham) (Con)]

Does the hon. Lady recognise that she seems to be suggesting having no plan and no sustainability? Does she accept that welfare spending tripled in real terms between 1980-81 and 2014-15? We believe that that is unsustainable and does not balance the books.

[Sarah Champion]

I think I thank the hon. Lady for her intervention. Does she recognise that there are groups in our society now that are being made poorer by this Government? That is the position that we are in, and that is what the statistics are telling us.

It has been proved that this Government frequently do not recognise gender differentials, and that assumptions are made in policy making that include biases in favour of existing unequal gender relations. Women are particularly vulnerable to being hit harder by Government policies, for a number of reasons. First, social security payments make up a greater share of women’s income than men’s, as women earn less in the labour market. Secondly, women pay less direct tax than men, because they tend to earn less. Women make greater use of public sector care services than men, because they have greater caring responsibilities. Finally, women are hit harder by Government policies, because a higher proportion of women are employed in the public sector. I ask the Minister how those factors were taken into account in the drafting of the most recent autumn statement?

Labour has already committed to a gender audit of financial statements when in government, the aim of which is to make gender equality a significant element in considering and recommending policy options. That would ensure that proposed measures contained no legal, economic, social or cultural constraints to gender-equitable participation and that policies were implemented in a gender-sensitive and equitable manner.

That process, which is often referred to as gender auditing or gender budgeting, now takes place in more than 40 countries around the world. It was originally inspired by the early experiences of countries such as Australia and then given further momentum by the United Nations commitment to gender budgeting in the Beijing platform for action.

I wish to draw the House’s attention to two particular examples of best practice, in Sweden and Spain. Gender impact assessment is a relatively common instrument to support the gender mainstreaming of policy implementation in Sweden. It is strongly embedded and is carried out by different levels of government, from local to national. In national Government offices, gender impact assessments are most regularly performed when drawing up documents such as Government Bills and terms of reference for inquiry committees. The implementation of those assessments is conducted in the framework of the Swedish Government’s gender mainstreaming strategy.

In Spain, gender impact assessments have been required by law in the Basque country since 2005, in the framework of the Equal Opportunities between Women and Men Act. Since 2007, gender impact assessment reports have been issued on more than 500 decrees and laws. After seven years, gender impact assessment is a consolidated practice that is strongly embedded in the Basque regional government.

Those are just two examples to demonstrate that, when it comes to mainstreaming equalities into economic and wider policy, the Conservative party is light years behind some of our European colleagues.

[James Cartlidge (South Suffolk) (Con)]

What gender impact assessment has the hon. Lady made of the effects of the 2008 credit crunch, and the record deficit that we inherited? Does she not recognise that the decisions that we have had to take were based on restoring the nation’s finances, which is in the interests of everyone, not just a narrow interest group?

[Sarah Champion]

I hear what the hon. Gentleman is saying, but why do women need to bear the brunt of this Government’s austerity?

[James Cartlidge]

rose—

[Sarah Champion]

I am sorry, but I am not having a conversation.

Will the Minister agree today to follow the example set by many other nations and produce recommendations on how equalities considerations can be better integrated into the policy process?

[Lucy Frazer]

The hon. Lady mentioned that Spain carries out gender impact assessments. What does she think of the fact that, according to the global gender gap index of 2016, Britain ranks higher than Spain on inequality between men and women?

[Sarah Champion]

I ask the hon. and learned Lady to think how much better we would do if we actively audited what we were doing.

Legal and international obligations on the Government mean that they need to protect and advance women’s economic equality. The Equality Act 2010, which was introduced by Labour, enshrined in law the public sector equality duty, requiring public authorities to have due regard to a number of equality considerations when exercising their functions. Labour enshrined in section 149 of that Act the provision that any public body must, in the exercise of its functions, have due regard to the need to “eliminate discrimination” and “advance equality of opportunity” for those with protected characteristics, which include gender and ethnicity.

The case of Bracking and others v. the Secretary of State for Work and Pensions is one of the leading cases on the application of section 149 of the Equality Act. The principles outlined in the judgment were recently summarised by Mr Justice Gilbart in Moore and another v. the Secretary of State for Communities and Local Government, and crucially include the following: that the relevant duty is on the Minister, or other decision maker, personally; that a Minister must assess the risk and extent of any adverse impact and the ways in which such risk may be eliminated before the adoption of a proposed policy, and not simply as a “rearguard action” following a concluded decision; and that the duty of due regard under the statute requires public authorities to be properly informed before taking a decision. If the relevant material is not available, there will be a duty to acquire it, and that will frequently mean that some further consideration with appropriate groups is required.

Specifically, I ask the Minister to outline how the most recent autumn statement, as well as policy announcements since her party came to Government, comply with section 149 of the Equality Act and the requirements outlined by Mr Justice Gilbart. Assumptions and reassurances will not suffice, and the public demand to see how the autumn statement and Government policies comply with relevant sections of the Equality Act and with case law. I ask the Minister to kindly make that information available through the House of Commons Library at the earliest possible opportunity.

We should not have to hold the Government’s feet to the fire to ensure that their policies are not disproportionately impacting one particular group and reversing progress on economic equality. Sadly, previous words from the Conservative party do not fill us with much hope. On 19 November 2012, the then Prime Minister spoke at the Confederation of British Industry’s annual conference. He announced that Government Departments would no longer be required to carry out equality impact assessments. He referred to equality impact assessments as “reams of bureaucratic nonsense” and “tick-box stuff”. Do the current Prime Minister and Chancellor agree with that analysis?

[Suella Fernandes]

The hon. Lady talks about progress, but what does she think about the fact that the gender pay gap has narrowed to a record level, and has been virtually eliminated for women under the age of 40? We have more women-led businesses than ever before. Should she not acknowledge that progress?

[Sarah Champion]

I have to say that it pains me that it is a woman Member who is asking that. Should I go back to my constituents and ask them to be grateful that it will only take another 60 years before they have parity of pay?

If the Government are set to continue their contemptuous attitude on equality impact assessments, will the Minster explain how else they have managed to show that due regard has been given to the impact of the autumn statement on those with protected characteristics?

The Government know how to conduct a proper audit of their policies on women and those with protected characteristics. The Equality and Human Rights Commission and the Women’s Budget Group, among many others, have outlined suggested methodologies very clearly. We have to ask why, in the light of the availability of those methodologies, the Government continue to be so evasive. Labour Members will not let go of this point. We will continue to commission and publish our own analysis at every future Budget and spring statement for as long as it takes the Government to do their duty. The question is how long the Government will continue to stick their head in the sand regarding the impact of their policies on women, disabled people and people from ethnic minority backgrounds. Will things change when the impact figure rises from 86% to 89%? Perhaps it will be 95%, or perhaps we have to reach 100% before the Government carry out an audit.

The situation has become increasingly embarrassing, as the Government continue to let women down time and time again. The Treasury refuses to send a Minister to appear before the Women and Equalities Committee to answer questions on the gender impact of the autumn statement. The Government have provided insubstantial data, and last year they voted down an Opposition motion on publishing a cumulative gender impact assessment of their policies. In their amendment to today’s motion, the Government point to their distributional analysis, which provides no overall analysis of the impact of the measures announced in the autumn statement on women, black and minority ethnic people or disabled people.

A few days before the autumn statement, the Women and Equalities Committee published a report criticising the Government for their lack of clarity both on how the 2015 spending review affected women, black and minority ethnic people and disabled people, and on how the equalities impact assessment had been undertaken. The Chair of the Committee, the highly regarded Conservative MP, the right hon. Member for Basingstoke (Mrs Miller), said:

“Without the information we have asked for or ministerial evidence it’s not been possible to form a view of the Government’s work under the public sector equality duty. Promotion of transparency is a central aim of the Public Sector Equality Duty requirements.”

The Committee, numerous organisations and, indeed, the Opposition have all made it clear that the distributional analysis produced by the Government is inadequate for judging compliance with the Equality Acts. The evasiveness must stop. Women and those with protected characteristics up down the country deserve and expect better. Various Ministers have refused to accept the analysis produced by the House of Commons Library that is cited in the motion. If the Minister disagrees with independent House of Commons analysis, will he say whether the Government would be willing to produce their own and make it available to colleagues? It is simply not good enough for the Government to criticise the Library analysis without producing their own.

[Kelly Tolhurst (Rochester and Strood) (Con)]

Will the hon. Lady explain whether the House of Commons analysis includes the national living wage? Two thirds of women benefit from the national living wage policy.

[Sarah Champion]

The problem with the national living wage is that it is a misnomer. It is welcome that it has been increased, but we are seeking a real living wage that brings people out of poverty, and we have not seen that.

[Christian Matheson (City of Chester) (Lab)]

Does my hon. Friend accept that if someone represents a party whose sole interest is to conserve the wealth of people who already have it, it is absolutely inevitable that people who are unfortunately still at the bottom of the pile will remain there as long as that party remains in government?

[Sarah Champion]

I agree with my hon. Friend, and I am proud that I represent a party that wants wealth to be shared, wants everyone to reach their potential, and will not leave anyone behind.

As I have stated, the Government know how to conduct an adequate equalities audit of their financial statements and policies. Clear methodologies have been produced by the Equality and Human Rights Commission, and they have chosen not to use them. Will the Minister agree to explain to the House how future announcements can properly take into account the impact on women, particularly those from BME backgrounds? Will the Government agree to put an end to the ducking and diving and send a Minister to the Women and Equalities Committee to answer questions on the matter? Will they agree to publish a full cumulative gender impact analysis of their policies since 2010, and will they outline how the autumn statement, and future financial and policy announcements, will demonstrate compliance with the UK’s legal and international obligations?

As I outlined in my opening remarks, gender economic equality has been at the heart of the fight for equal rights in this country. Progress has been all too slow and the victories hard-won. The Opposition can be proud that almost every major piece of legislation that improves the lives of working women has been introduced by a Labour Government. It was a Labour Government who introduced legislative protections for women under the Equal Pay Act 1970, the Sex Discrimination Act 1975 and the Equality Act 2010. The Labour Administration were the first since the second world war to accept state responsibility for developing childcare policy, and they introduced paternity leave and increased maternity leave. We brought in Sure Start centres, working tax credits and all-women shortlists, and we have more women MPs than all the other parties in the House combined.

In 2016, under the current Government, women in the UK are more likely to work for less pay than men. They are more likely to be in chronically low-paid and insecure sectors of the economy and to be disproportionately affected by unprecedented cuts to public services.

[Several hon. Members rose—]

[Sarah Champion]

I shall not give way, because other Members wish to contribute.

Unlawful maternity discrimination has become increasingly pervasive on the Government’s watch, with an estimated 54,000 pregnant women and new mothers forced out of their job every year. According to the Equality and Human Rights Commission, just 1% of those women have taken their case to an employment tribunal since the introduction of prohibitive tribunal fees of up to £1,200. As I stated at the beginning of my speech, as of the most recent autumn statement, 86% of net savings to the Treasury through tax and benefit changes since 2010 have come from women. Today, the Government have a chance to decide whether they want that to be their lasting legacy in the fight for gender economic equality. Ministers have a choice: do the Government stand by, evade their responsibilities and make life worse for millions of women in this country, or do they put their warm words into action, rectify their mistakes and create a new era of transparency and accountability on the impact of Government policy on women, disabled people, and black and ethnic minority people? We expect them to make the right choice.

--- Later in debate ---

[Mr Gauke]

My hon. Friend makes an interesting point. I did not know that and I am grateful to him for drawing it to the attention of the House. The national living wage, which was brought in by this Government, disproportionately benefits women.

The number of black and minority ethnic women in work is at a near record high, with nearly 400,000 women finding work since 2010, and the employment rate for people in black and minority ethnic groups is at a record high of 64.5%, its highest level since records began in 2001.

[Sarah Champion]

I am grateful to the Minister for outlining what companies are doing to help women and the black, Asian and ethnic minorities. That is fabulous, but the debate is about what this Government are doing and how the Government’s austerity is adversely affecting those groups.

[Mr Gauke]

The logic of the hon. Lady’s point appears to be that there is no link between what happens in the economy and Government policies. What has been demonstrated over the past 10 years is that there is a very clear link between Government policies and what happens in the economy, and it is because of the policies of this—[Interruption.] We are the fastest-growing economy in the G7 at present, so it is going quite well, given that, among the major economies, we were the economy that was most affected by the crash in 2008. We have put in place an environment where we are creating jobs and seeing living standards improving, and that is happening across the economy for men and women.

It is, of course, right that we continue our work to address long-standing barriers to work for BME people, including through Baroness McGregor-Smith’s review, new support in schools, and new guidance for jobcentres and local partners. We have also set a public target to increase the proportion of apprenticeships started by people from BME backgrounds to 20% by 2020, building on good progress since 2010.

So we are strengthening our economy by managing stable public finances, backing our businesses and creating jobs. At the same time, we are helping people regardless of gender or race make their money go further in their day-to-day lives. That is why we confirmed in the autumn statement that we will raise the personal allowance to £12,500 by the end of the Parliament. By 2020, it will have increased by over 90% since 2010, taking millions of the lowest paid out of paying income tax, and representing a tax cut for over 13 million women by 2018, compared to 2015.

We have also introduced the national living wage at £7.20 an hour to help over a million people on the lowest wages, and we announced at the autumn statement that we would raise this to £7.50 in 2017. The national living wage is focused on hard-working, low-paid workers, regardless of their gender or race, and hon. Members should note that women are expected to account for around two thirds of those who will benefit from this, with people from BME communities expected to gain disproportionately.