Gender Pay Gap

Debate between Stella Creasy and Hannah Bardell

Wednesday 5th December 2018 Westminster Hall

[Stella Creasy (Walthamstow) (Lab/Co-op)]

I beg to move,

That this House has considered the gender pay gap.

It is a pleasure to serve under your chairmanship, Sir David. I feel very greedy for having just intervened in the last debate and now having my own debate, but both debates are on matters that are close to my heart, because both make a big difference to our local communities.

I mean no disrespect to the Minister present—the Minister for Women—but I see this subject as a matter for the Treasury first and foremost, because I think that closing the gender pay gap is one of the most positive economic policies that we could have in this country, given the benefits that it would bring to our country as a whole. We have spent the past eight years, since I was first elected to this House, arguing about austerity—I know that there are different views on it, but Labour Members are pretty clear that it has not been a good economic policy. There are probably different views across this Chamber as to whether Brexit is a good economic policy—many of us are certainly concerned about the impact on our economy—but I hope there is agreement across the House that closing the gender pay gap would have a positive impact on our economy.

For me, it is interesting and telling that we do not see this matter first and foremost as one of economics. That is one of the challenges we have to address, because we know that closing the UK’s gender pay gap would add £150 billion to our GDP in the next couple of years and that an extra 840,000 women would be added to the UK workforce. Those figures reflect what the gender pay gap really is: untapped talent in our society. Given that we have gone through the horrors of austerity and we appear to be going through the horrors of Brexit, never more have we needed positive economic policies that tap into that talent, to help us try to redress the balance. To the person who tweeted me earlier this afternoon, saying that in debating the gender pay gap I may as well be debating “unicorns”, I say that today the “unicorns” are in the main Chamber, in relation to Brexit. This debate is very much a reality.

The gender pay gap is a reality that we have always known existed; we have always had data to show a general gender pay gap in this country. We know from the annual survey by the Office for National Statistics that the average gap is about 13%. However, what has changed in this debate in the last year has been the data about particular companies, busting open the argument in people’s workplaces and revealing to them the variations between different sectors. It has shown that 78% of companies in this country that have more than 250 employees are paying the men they employ more than the women—that is on average, so it is not just about individual men and women. That is a systematic undervaluing by those companies and organisations of the women who work for them, and of the possibilities that they could bring to their company or organisation.

[Hannah Bardell (Livingston) (SNP)]

I am delighted that the hon. Lady has secured this debate and it is a pleasure to join her in it. I was on the Delegated Legislation Committee that considered the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 and put them through. I was surprised, as I am sure she was, that the bar was set at 250 employees. I know that is a good start, but does she agree that some of the biggest challenges are in the small and medium-sized companies that have fewer than 250 staff, and that it would be fantastic to hear at least an expression of willingness from the Government Benches to extend that legislation as soon as possible?

[Stella Creasy]

I completely agree with the hon. Lady. At the moment, only about 60% of the British workforce are covered by that legislation, so when we talk about understanding the gender pay gap in this country, we still have 40% of the gap to understand. I will come on to that issue later because, like her, I am impatient and, also like her, I have a passion for that piece of legislation.

We should honour all of the parliamentarians involved in this, including my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman), whose determination to get the Equality Act 2010 through set us on course to where we are today. Sometimes her contribution to this process is forgotten, perhaps by Members who are new to the House. Anyone who has ever dealt with her on these issues knows full well how passionate she is about them and everyone should recognise that.

The variation within sectors is also pretty telling for us, in terms of the kinds of experiences that women in our country—our constituents—might face.

--- Later in debate ---

[Stella Creasy]

Absolutely. One of the things I want to come on to is the rise in self-employment, and in particular how that affects a lot of women who have lost their jobs in industries where self-employment is now the norm. A lot of our equal pay legislation and gender pay work is out of date because of the way in which people are now working, and I would love to hear the Minister’s thoughts on whether we need an equal pay Act for the 21st century that can take account of what a comparator is for somebody who is self-employed. Certainly, for a lot of those women, that will be a live issue.

Equal pay is still a problem. The Equal Pay Act 1970 is older than I am, but we know that women are still facing basic problems in being paid the same as men to do the same jobs. We know that the 84% drop in the number of cases is more to do with the cuts in legal aid than with an end to the problem, as the legal cases involving the BBC and Asda prove all too well. However, the gender pay gap is not illegal; it is just immoral and, frankly, inefficient. That is the issue that we have to get right, because it is an issue that our competitors are getting right.

That is the third thing that I want to say to the Minister. We can argue about the data—I press her to improve the quality of the data we get with the second lot in 2019, because there is more we can do—but data is not enough. Indeed, the data and the reaction to it shows that people are quite comfortable with the idea that we should have a gender pay gap, in a way that they would not be comfortable with poor productivity in their firms. We have to change that culture, and when our competitors are doing that we have a real problem.

[Hannah Bardell]

On the matter of culture, does the hon. Lady agree that the erroneous and inappropriate misuse of non-disclosure agreements is making a massive contribution to poor culture, with women particularly being silenced, resulting in the suppression and oppression of women and their voices in the workplace?

[Stella Creasy]

I absolutely agree. Indeed, that hostility to women’s voices being heard at all is one of the things that has come out of the #PayMeToo data. The fact that someone is powerful and has the money to silence someone else does not mean that that person’s voice should not be heard. I will support any of the measures on non-disclosure agreements that I know the Select Committee on Women and Equalities is looking at, not just about sexual harassment but about harassment in the workplace, because it is clear from the data we are getting that women do not feel able to come forward and do not feel protected. Indeed, when we see the BBC—a major public employer—trying to silence women, what message does that send to women who want to talk about equal pay?

We can learn lessons from our competitors. We can learn from Iceland, which has brought in some very serious fines to make sure that there is enforcement of equal pay. It is no good having legislation if there are no real teeth to enforce it. In Germany, employees can now get the details of six of their colleagues’ pay so that they can do a direct comparison, which has had a big impact on changing conversations about the worth of women in the workplace.

However, I am also here to say to the Minister that time is up for asking nicely, because we have been asking nicely for some time for these issues around pay and progression to be dealt with, and the pace of change is glacial. When our competitors in Germany, Belgium, France, and elsewhere across the EU—even in California, for Christ’s sake, which is hardly a bastion of socialist public policy—are introducing quotas and recognising that pushing those quotas helps push the pipeline, the question for us is, “Why do we want to be left behind as a nation?” Left behind we will be, because even if we can struggle to get a few more women on boards to meet that target for 2020, we are not doing anything about that pipeline. We are not doing anything fundamental to ensure that the talent that exists on the shop floor that is currently underpaid is being picked up and fast-tracked. That would help change the country.

That matters because of the economic impact of failing to pick up that talent. It matters when we hear companies saying that when it comes to promoting women, “Most women don’t want the hassle or pressure of sitting on a board.” Of course, we know that women do not deal well with pressure, obviously. They say, “All the good women have already been snapped up. That’s why you can’t find them,” or, “We already have one woman, so that’s enough, surely.” Of course, all women can be represented by one woman on a board. They say, “Shareholders just aren’t interested in this issue.” Frankly, if shareholders are not interested, they are not watching the world or their bottom line.

A global analysis of more than 2,000 companies showed that companies with women in at least 30% of leadership positions had profits that were on average 15% higher. If shareholders are not pushing for and demanding change, clearly they do not want to make any money, but that is what is happening now. We can keep asking nicely and trying to improve the data, but even if we improve the data there is that comfort with having a gender pay gap that means our economy is going to be held back, and that needs to change.

We should be asking about part-time work and whether we need to lower the threshold, at least from 250 to 100 employees. We should hold to account those companies that try to avoid putting in their partnership data, and we should get the data on black and ethnic minority employment and disability within our workplace. But we should also make a commitment that we will act, and acting means doing what our competitors are doing. It means setting some clear targets and having consequences for those firms that fail to act.

We know that next April we might see data that is a little bit better. After all, they will have had a year to try to figure out how to game the system, but gaming the system does not get the economic benefit. Let us stop apologising for wanting to close the gender pay gap and start demanding that we do, because this country cannot afford not to. What will the Minister do to ensure that the data we get next year is better, clearer and more diverse? What does she think is the appropriate timescale to keep asking nicely? Will she commit to when we might bring in quotas if we do not see change? She will find friends and champions across the House if she does. I also know that if she does not, Britain will not get the productive workers it needs. Blaming women for the problem will not help our economy. Helping ensure that every firm, every public sector organisation and every charitable organisation makes the best use of its staff will give this country the brighter future that the Prime Minister claims she wants. We want more than one woman at the top; we want many. That is what Britain deserves.