Women in Wales Debate

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Department: HM Treasury
Tuesday 16th July 2013

(10 years, 10 months ago)

Westminster Hall
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Jessica Morden Portrait Jessica Morden (Newport East) (Lab)
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It is good to start early on this hot, sunny July afternoon, Mr Benton.

Last year, I looked at the financial cost for women in Wales of the policies of the coalition Government. The study, which was based on parliamentary questions and Library research, revealed that, directly due to coalition policies, £1 billion would be taken away from Welsh women. It highlighted that more than £700 million would be lost to women in Wales as a direct result of pension changes; housing benefit changes, not including the ruthless bedroom tax, would account for more than £13 million; nearly £40 million would be lost due to changes in working tax credits; and public sector pay restraint would cut £300 million out of families’ pockets.

Have things got any better since then? Clearly, the answer is a resounding no. Things continue to get worse for women in Wales, whether because of the replacement of well-paid jobs by lower-paid ones, sustained attacks on public sector jobs, the increase in zero hours contracts and part-time working, cuts to child care, or direct tax or benefit changes, such as the bedroom tax. Whichever cut it is, women in Wales are being hit hard.

Why is this situation affecting women so badly? Women are, on average, poorer than men. Some 64% of low-paid workers are women and in later life women’s average personal pensions are only 62% of the average for men. Women also live longer, often spending the final years of their lives alone. Women are more likely to be the primary carers for children, older people, the sick or the disabled. Nearly three quarters of carer’s allowance claimants are women, confirming that women take responsibility for the majority of care. Women are also far more likely to be lone parents. Indeed, in Wales 95% of lone parents are women and that group is much more likely to be below the poverty line. Women are also more likely to be the victims of domestic and sexual violence.

Given that women use public services and benefits more than men, it is clear that when provision is cut it will hit women even harder. The fact that women are bearing the brunt of the Government’s deficit reduction plans is proven by Library research. Of the £14.4 billion raised in 2014-15, through changes to taxes, benefits, pay and pensions, £11.4 billion—some 79%—comes from women and £2.9 billion from men. In a Cabinet with three times as many men as women, it is hardly surprising that women’s voices are not being heard at the highest level.

Siân C. James Portrait Mrs Siân C. James (Swansea East) (Lab)
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The cuts in the public sector are particularly affecting us in Swansea East, because we have high dependency on public sector jobs. Does my hon. Friend agree that the cuts are impacting much more strongly on women than on men, because more jobs are being developed for men, but not as many for women?

Jessica Morden Portrait Jessica Morden
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In terms of public sector employment and cuts to it, my hon. Friend is right. I will mention that later.

Let us look for instance at tax and benefit changes. The coalition Government and Ministers at the Department for Work and Pensions have consistently described their welfare cuts as fair. Clearly, they are unaware of or are ignoring the disproportionate impact they are having on women in Wales. A recent Office for National Statistics study on the effect that benefit and tax changes have had on incomes by household types demonstrates the negative financial consequences for women and families. That study, which covered the financial years 2010 to 2012, shows that a lone parent household with dependent children is £2,248 worse off. We have already established that the vast majority—95%—of lone parents in Wales are women. For other families, the situation does not get any better. A household with two adults and two children is nearly £5,000 worse off. The stress on parents who are trying to accommodate such an income fall, bearing in mind the huge hike in living costs, adds a great deal of pressure for people who are already working hard to keep their heads above water.

A recent report by the TUC showed that most jobs created since the recession have been in low-paid industries such as retail, the service sector and residential care. That was borne out by the ongoing inquiry by the Welsh Affairs Committee into the Work programme. Nearly 8% of the 587,000 net new jobs since June 2010 have been in sectors where the average pay is £7.95 an hour or less. Figures from the Office for National Statistics show that long-term unemployment has increased by nearly 100,000 since May 2010, and a shocking 86% of that increase is among women. Young Welsh women are particularly struggling in the labour market, with one in five out of work. In the figures released in June, the overall unemployment rate in Wales remained unchanged at 8.4% but the number of unemployed women rose again.

--- Later in debate ---
Stephen Crabb Portrait Stephen Crabb
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The context is important, and it is valid. I reject what the hon. Gentleman says.

The Labour party is committed at the moment to cutting £7 out of every £8 that the coalition Government are cutting. The Labour party has said that it is committed to that level of budget cuts. Of course, it will not say where. I listened to the hon. Member for Newport East give a long list of cuts to which she objects, but she will not say what her party would have cut. She is also not saying that her party, if it were in government, would actually increase spending on any of those services. I hope she will forgive me for saying this, but it is a little disingenuous to attack all the efforts that we are making to restore discipline to our national finances without also being up front by saying, “As a party, if we were in government, we would probably be cutting all of these things, too.”

Siân C. James Portrait Mrs Siân C. James
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Let us move away from cuts and look at job creation. In Swansea East, the most recent figures show that between May 2012 and May 2013 female unemployment rose by 13.5%, yet male unemployment fell by 1.5%. Things are just not working for women, are they? That is really what the debate is all about. My hon. Friend the Member for Newport East (Jessica Morden) was attempting to say—and I think she said it very succinctly—that it is not working for women. What are this Government going to do on their behalf?

Stephen Crabb Portrait Stephen Crabb
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There are communities in Wales in which unemployment among women remains a very serious problem, and I recently spent a day visiting various initiatives in the valleys, looking at job creation schemes and efforts to address long-term unemployment among men and women. I completely recognise the point that the hon. Lady is making, but let us step back and look at the bigger picture.

More women in this country went out to work today than ever before in history. There are now 13.8 million women in employment, which is more than ever before. Female unemployment actually rose under the last Labour Government by 30%. Under this Government, since May 2010, the number of women employed in the UK has increased by more than 350,000; in Wales, the number of women employed has increased by 21,000. The picture is not as gloomy as the hon. Member for Newport East presents. The employment rate in Wales among women is up by 1.2 percentage points, which is good progress. We are not complacent about that, and we need to be ambitious about improving it, but the trajectory is positive.

In the hon. Lady’s constituency of Newport East, there are now 2,400 more women in employment than two years ago. Surely she must welcome that. The employment rate among women in her constituency is up by more than 6%. Some positive things are happening.