Women’s Contribution to the Economy

Sheila Gilmore Excerpts

Thursday 6th March 2014 Westminster Hall

[Mrs Spelman]

Testosterone is far too racy a subject to start talking about mid-afternoon on a Thursday. Actually, my hon. Friend makes a good point. I applaud moves such as the one by the chief executive of Barclays, who is introducing quotas for women within his company, so that women get a really good opportunity to be represented in the higher-paid echelons of the banking business. I wish that we saw more of that.

[Sheila Gilmore (Edinburgh East) (Lab)]

I apologise in advance for having to depart; I hope to come back later, but I am on a Public Bill Committee and I think that my turn to speak will come quite shortly. One thing that various investigations of professional groups—even, for example, people teaching in universities—show is that at younger ages men and women are often quite equally paid; they seem to be on the same sort of earnings levels. However, there is a disparity later, which is closely related to family responsibilities.

[Mrs Spelman]

Absolutely. The hon. Lady makes a good point and she shows perfect timing. I have a lot of material for today’s debate, and I may not use it all, but I want to come on to the issue of the costs of child care, because it is a significant factor and it affects women’s earning potential. If they have to take a career break, it eventually has a negative impact on their earnings during their career.

The ONS report from last year showed that the age of children and the relationship status of the mother are important factors in determining the likelihood of mothers being able to go to work. Only 39% of single mothers whose youngest child is aged three or below are in work, compared with a figure of 65% for those mothers who are in a couple. That situation changes later on, with 61% of single mothers who have a youngest child of primary school age in work, because it becomes possible for the lone parent to get back into the workplace.

The cost of child care is a real challenge. There was a report only this week that showed that child care costs more than the average mortgage, which should concern us all. However, the Government have taken significant steps to try to help women with the cost of child care: introducing shared parental leave from April 2015; funding 15 hours a week of free child care for all three and four-year-olds, which will save families approximately £380 a year per child; funding 15 hours a week of free child care for disadvantaged two-year-olds, which will save the most disadvantaged families more than £2,400 a year per child; introducing tax-free child care for lone parents in work, and for families with two working parents who each earn less than £150,000; and increasing child tax credit to £3,625 a year. These are all steps in the right direction, but for a lot of women, the cost of child care remains a significant deterrent to being active in the economy.