Women (Government Policies) Debate

Full Debate: Read Full Debate
Department: Home Office

Women (Government Policies)

Yvette Cooper Excerpts
Wednesday 8th June 2011

(13 years, 6 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Yvette Cooper Portrait Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)
- Hansard - -

I beg to move,

That this House regrets that the Government’s policies are hitting women and families hardest, including direct tax and benefit changes, cuts to childcare support and Sure Start which are making it harder for women to work, reductions in domestic and sexual violence specialist support, and their impact on the provision of social care; opposes plans that will make 300,000 women born between December 1953 and October 1954 wait an additional 18 months or longer to receive their state pension; calls on the Government to maintain the commitment given in the Coalition Agreement that the state pension age for women will not start to rise to 66 sooner than 2020; believes that promoting equality for women is vital to building a fairer society; and calls on the Government to commission independent, robust assessments of the impact of its policies on women and to prevent the implementation of policies that could widen inequality between women and men.

I got an e-mail from a woman called Michelle, who lives in my constituency. Michelle is a single mother with a toddler; she works part-time in a bank to support her family; and she studies part-time at the Open university, because she wants to get on and build a better future for herself and her child. Right now, she is very worried. Her train fares are going up and she is afraid that her course fees will go up, but the really big blow for her is that her child tax credit is being cut from 80% to 70%.

Michelle wrote:

“This is really devastating for me. My nursery fees are £530 a month, and my salary is £600 a month. This is an extra £50 each month out of my already very tight budget. This sadly is going to force me out of work and onto benefits, which I desperately don’t want to do. It is so unfair and I am very angry. I want David Cameron, George Osborne and the rest of the coalition to acknowledge this is happening to myself and thousands of other single parents, but that will never happen.”

It is because of Michelle and the stories that we have heard from so many women throughout the country that we have called this debate today. We are deeply worried about women who are struggling to work because of the changes that the Government have made; women who are finding it harder to make ends meet; women who are losing their own income and some of the independence that they value; women who are losing thousands of pounds of their pensions; and women such as Michelle who are finding it more difficult to work because of the sheer scale of the assault on families throughout the country—20% cuts to the Sure Start budget, cuts to child care tax credit and cuts to child tax credit.

The Government are taking more money from support for children than they are from the banks as part of their deficit reduction plan, and mothers throughout the country are taking the strain. Time and again, the Government hit women and families hardest, and I fear that for the first time in many generations equality and progress for women is being rolled back.

All Members know and will celebrate the major advances that we have seen in women’s equality over the past century. When we celebrated the centenary of international women’s day, I met a woman called Hetty Bower, who is already more than 100 years old and has received her telegram from the Queen. When Hetty was born, however, women did not have the vote, and when she had her first child there was no maternity care on the NHS—indeed, there was no NHS. She worked, but she certainly did not get maternity pay, family allowance or child benefit. By the time her daughter started work, it was still legal to pay women less than men to do the same job, and even when her granddaughter started work there was still little child care and little help for women wanting to work part-time or to care for their elderly parents.

When the Secretary of State and I were elected to Parliament, maternity leave was just 14 weeks, compared with 52 weeks today, and there were child care places for only one in eight children, rather than the one in four today. Of course, here in Westminster itself we had no nursery, but we still had a shooting range.

All the progress that we have seen for women over those years has been hard-won, and we should not take it for granted. From the suffragettes to the Dagenham strikers, women have campaigned and worked hard for those changes.

We know that there is still a long way to go, and if we look at the facts we find that, even some 40 years after passing the Equal Pay Act 1970, the pay gap remains at 15%. Women still make up only 12.5% of the boards of the UK’s top 100 companies. One in four women is a victim of domestic violence in their lifetime. Women here still represent only 22% of our Parliament. Some 30,000 women lose their jobs every year because of pregnancy. So yes, we have come a long way, but we have further to travel yet.

I think that the Minister for Women and Equalities and the Minister for Equalities support progress for women and agree that it should go further and faster. The trouble is that their Government are not delivering; instead, they are turning back the clock.

Claire Perry Portrait Claire Perry (Devizes) (Con)
- Hansard - - - Excerpts

Would the right hon. Lady like to take this opportunity officially to dissociate herself from her previous Government’s disastrous 10p tax policy, which did so much to hit the lowest paid, especially women across the country?

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

I think that it was right to change the policy on the 10p tax rate, which did cause problems for a lot of women—the hon. Lady is right. However, often the very same women for whom we had to make changes to ensure that they got help because they were being affected by the 10p tax rate are now being affected by what her Government are doing to change the pension age and equalise pensions so quickly. The 10p tax rate did affect women, but not on the scale under this Government of hitting them with more than £10,000 of losses. Yes, she is right to point out the problems with the 10p rate, but she also needs to point out to her Government the serious damage that they are doing not only to women approaching pension age but to many other women across the board.

--- Later in debate ---
Yvette Cooper Portrait Yvette Cooper
- Hansard - -

I will make progress and then take an intervention from the hon. Lady.

In area after area, whether it is income, employment, child care, public services or action on violence against women, we are seeing the clock turned back. Today we want to concentrate on the Government’s reforms to the pension age and what is happening to women as a result. We understand the Government’s concern about rising longevity; of course we are all living longer and that has consequences. However, the nature and timing of the changes they have chosen is hitting women much harder than men. Bringing equalisation down to 2016 from 2018, combined with increasing the age again straight after that, means that women currently in their late 50s are getting a very bad deal. No men will see their state pension age increase by more than a year, but half a million women will do so. Those women, who are already in their mid to late 50s, are suddenly seeing their retirement plans ripped up. A third of a million women will have to wait an extra 18 months, and 33,000 women will have to wait an extra two years.

Let us think about what that really means. These women are already around 57 years old. They have been expecting to get their retirement pension in about seven years’ time. They will already have made financial plans; many will already have made retirement plans. These women are often the rock of their families. They are the ones who stopped work to look after their grandchildren so that their daughters could work, or they are working part-time and looking after elderly relatives. They have worked out how they can manage it, and how they can stretch their savings until the pension kicks in, and suddenly the Government are ripping all that up.

Anne Begg Portrait Dame Anne Begg (Aberdeen South) (Lab)
- Hansard - - - Excerpts

The group of women who, when they started work, would have expected to retire at 60, had already accepted that because of the equalisation of the state pension age they would have to work until they were 64, but it is the two years on top of that which is very difficult for them to swallow.

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

My hon. Friend is exactly right. Those women have already made changes to their retirement plans, but these further changes are very late in the day, when it is extremely difficult for them to rearrange their plans. The consequence is that the equivalent of about £5,000 is being taken from half a million women, £10,000 is being taken from thousands of women, and £15,000 is being taken from those who are hardest hit—and they have less than seven years to work out how to cope. For most of those women it is too late to make changes to their financial plans and their career plans.

Let us take the case of Christine. She was born in July 1954. She is still working as a self-employed bookkeeper, and works about 25 hours a week. Like a lot of women her age, Christine says that she put her career on hold to bring up her children, so she does not have much of a private pension. She does not have extra savings to help her to cope and to make good the gap. Women in their late 50s have average pension savings of £9,100 compared with an average of £52,000 for men of the same age. These are women who took time out to look after their families, who worked part-time, and who started work in the ’70s when the pay gap was bigger. The pension system never properly recognised the contributions that they made to their families and to society, and now, as a result of what the Government are doing, it is kicking them in the teeth again.

The Government cannot tell us that this is being done to cut the deficit, because in 2016, when these changes come in, their structural deficit is supposed to have been eliminated. The best that the coalition has been able to come up with in its defence is to say that some of the poorest male pensioners who get pension credit will be quite hard hit too. I do not think that people such as Christine will consider that much consolation. Today, the Prime Minister tried to claim, “Well, it’s all right, it means that pensioners will be £15,000 better off because this is restoring the link with earnings,” but the link with earnings had already been restored as part of the Turner review. Making such a change now does not provide any benefits for women for many years to come. Instead, in the next few years, it hits extremely hard women who have worked hard for their families and for society.

Women on the Government Front Bench and Back Benches ought to do something about this. They should stand up and be counted; otherwise they are letting down women in their constituencies.

Anne Begg Portrait Dame Anne Begg
- Hansard - - - Excerpts

Does my right hon. Friend agree that it was not good enough for the Minister responsible for pensions to say to my Select Committee that it is all right because these women can get jobseeker’s allowance or employment and support allowance instead?

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

My hon. Friend is exactly right. It is appalling to suggest that these women can get jobseeker’s allowance, because many of them have claimed very little throughout their lives. They have believed in working hard, doing their bit, and making their contributions to their family and their society, and the state pension was what they had earned—what they had saved for and contributed towards. Saying to them that they should claim jobseeker’s allowance, which is set at a much lower level, or that, having perhaps taken early retirement to look after the grandchildren only now to find that they cannot do so because they cannot make their savings stretch, they must suddenly try to find work after so long out of the labour market, misunderstands the reality of their lives and the pressures they are under. Something needs to change. The Government have done U-turns on issues such as forests; they have paused on the NHS; and they should make a massive change on this policy.

Jessica Morden Portrait Jessica Morden (Newport East) (Lab)
- Hansard - - - Excerpts

Does my right hon. Friend agree that not only is this change coming in very quickly but thousands of women out there are not aware of it, despite the excellent campaign, because the Government have provided very inadequate information?

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

My hon. Friend is right. To the extent that women can plan for such change, they need to know what is going on. At the moment, a lot of women do not know what is happening and are worried. They are starting to hear about the change, but do not know what it is going to mean for them and for their personal circumstances.

Unfortunately, I heard one of the men on the Conservative Benches mutter “Deluded” in response to my call for the Government to U-turn. I have to say to him that he is deluded if he thinks that women across the country will not feel extremely angry. The more that they realise what the Government are doing, the more they will be knocking on the doors of their constituency MPs and asking why their MP is allowing them to lose up to £10,000 as a result of deeply unfair changes.

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

I give way to the hon. Gentleman; I hope that he can defend the proposals.

James Gray Portrait Mr Gray
- Hansard - - - Excerpts

I am grateful to the right hon. Lady for giving way. As one of the two Conservative men who signed the early-day motion on this subject, the other being my hon. Friend the Member for Worthing West (Sir Peter Bottomley), I very much sympathise with the point that she is making on behalf of women born in 1953 and 1954—like me; 1954 was a vintage year. Does she not regret that in the motion she has chosen to make a broad sideswipe at the Government that is much less well thought through than her point about that particular cohort of women? Had she focused her attention on that, she might well have found one or two of us joining her in the Lobby.

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

I apologise for my slightly aggressive reaction to the hon. Gentleman when he stood up; I should have checked the EDM beforehand. I commend him for his defence of his vintage, of all sexes. He is right that this issue is of extreme concern, and I hope that we will have further opportunities to vote on it.

I will turn to the wider points in the motion that the hon. Gentleman criticised, but which I think are important. It is women rather than men who are taking the biggest burden in the Government’s deficit reduction plans. The Government know of our deep concern that they are cutting too far and too fast, and that they are hitting growth and pushing up unemployment, which will cost us more. However, even those who support the scale and pace of the Government’s plans should be worried about the way in which they are carrying them out.

The House of Commons Library has produced detailed analysis of the direct tax and benefit changes in the Government’s emergency Budget and the spending review. A net total of £16 billion is being raised. That takes account of the increase in tax allowances and the cuts to tax credits. It looks at the extra money as well as the cuts. The conclusion is that £5 billion is coming from men and £11 billion is coming from women. Women are paying more than twice as much as men to get the deficit down, yet women still earn less and own less than men. How can that be fair?

Harriett Baldwin Portrait Harriett Baldwin (West Worcestershire) (Con)
- Hansard - - - Excerpts

Will the right hon. Lady confirm that the numbers she is citing include the £3.75 billion from the child benefit cuts for higher rate taxpayers such as me, who obviously are predominantly women?

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

The figures include everything, so they do include the child benefit changes, as well as the change in tax allowances, the cuts to housing benefit, the cuts to public sector pensions and a series of other things. The point is that the cumulative impact will hit women much harder than men. Women who are on higher incomes will be hit much harder than men who are on higher incomes. Women who are on lower incomes in households where the man is on a higher income will also be hard hit, even though they may only be on part-time or low earnings. The hon. Lady is right that the analysis does not separate women on the basis of different levels of earnings, but it does show that at every level of earnings, in every sector of the economy and in every sector of society, women are being hit harder than men.

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

I give way to the hon. Member for West Worcestershire (Harriett Baldwin) first.

Harriett Baldwin Portrait Harriett Baldwin
- Hansard - - - Excerpts

Is the right hon. Lady saying that she would like my child benefit of £81.20 every four weeks to be reinstated, despite the fact that I make more than £65,000 a year as an MP?

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

We have said that we think there is a serious advantage in some universal benefits. I do not think that the hon. Lady should be paid child tax credit, and she is not, because it is right that some things depend on people’s incomes. However, it is important that some things are universal. That is why we have said that there are serious problems with what the Government are doing on child benefit. She needs to take seriously the point that at every level of income and in every sector of society, women rather than men are the hardest hit.

Kate Green Portrait Kate Green (Stretford and Urmston) (Lab)
- Hansard - - - Excerpts

As someone who has staunchly defended universal child benefit precisely because of the reach that it secures for the poorest families—better than the means-tested benefits that are designed to reach them—I am pleased to tell the hon. Member for West Worcestershire (Harriett Baldwin) that I will certainly campaign for the reinstatement of child benefit for all parents. Does my right hon. Friend agree that one reason why it is so important to have benefits that are predominantly directed at women is that even in the best-off households, the way in which income is divided between a couple often favours the man? It is important to give women some independent income to protect their financial independence within the household.

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

My hon. Friend is right, because who gets the income in the household matters for a lot of women. Child benefit was about giving women an independent income, and it has given women a greater ability to make choices about their own lives.

The Government have dismissed the figures about the impact on women and men. They say that those figures cannot be calculated, but they have calculated no figures of their own. They claim that it cannot be done. That is rubbish, because the House of Commons Library did it, and pretty quickly. They also claim that it is not possible for the Government to come up with such figures, but the Treasury has done it before. When the Minister for Women and Equalities and I were new Back Benchers, I asked Treasury Ministers a written question on exactly the same thing. I asked what was the impact on women compared with men of the 1997, 1998 and 1999 Budgets. Treasury Ministers were able to calculate it then and they can calculate it now. The answer was that men benefited by £2.30 per week and that women benefited by £5.30 per week from the changes brought in by the Labour Government. This is the contrast: the Labour Government’s first Budget helped women twice as much as men; the Tory-led Government’s first Budget hit women twice as hard as men.

The Government say that one cannot look at men and women separately, but that one must look at households. That is the point that my hon. Friend the Member for Stretford and Urmston (Kate Green) made. The Government’s plans for universal credit have the same kind of flaw. They are talking about a single payment being paid to a single household member, with the risk that it will go predominantly to the man. What the Government say is just not true. Of course people choose to share their money in the household and in the family, but that is the point—they choose to share their money. Who gets the money in the first place matters. Beveridge understood that 60 years ago. That is why he introduced the family allowance, which led to child benefit. I do not understand why Government Members and the Government are so blind to this issue. Women on the Government Benches would be horrified if suddenly their salaries were paid to their husbands on the basis that it does not really matter because they are in the same household. That is the logical consequence of the Government’s arguments about households and for not being able to do such analysis.

None Portrait Mrs Louise Mensch (Corby) (Con)
- Hansard -

The right hon. Lady is pretending that child benefit is an income for women that is paid to women, but it is a benefit that is paid for the benefit of the child. It is not and never has been income for women.

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

The hon. Lady does not seem to understand that most women do the spending for the children. That is why, originally, Beveridge wanted to ensure that women got some money. Right now—[Interruption.] Government Members obviously do not talk to women in their constituencies about the way in which child benefit money matters massively as part of their income. Of course a lot of that money is spent on children, but however women spend it, the fact that it is they who get the income gives them choices about how it is spent.

I suggest that the hon. Member for Corby (Mrs Mensch) listens to the recording of “Woman’s Hour” from soon after the Government’s announcement of their plan to take child benefit from those on the highest earnings. A lot of women called in to describe how they were on a low income, even though their husbands were on a higher income. They spoke about the difference that it made to have some money that came to them and over which they made the decisions, even if it was then spent on the children and their future.

Louise Mensch Portrait Mrs Mensch
- Hansard - - - Excerpts

I am grateful to the right hon. Lady for being generous and giving way to me again. My constituency of Corby in east Northamptonshire has a large proportion of lower-income women. The women who come to my surgeries are delighted that higher-income women and families will not be paid this benefit, because they regard it as fundamentally unfair that rich people receive benefits. They cannot understand why it is the Labour party that is protecting benefits that are paid to the rich.

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

Are those constituents equally delighted by the cuts to child tax credit, the cuts to the baby tax credit that is paid in the first year, the cuts to the Sure Start allowance, the cuts to their Sure Start centres, and the huge cuts that are hitting low-income women across the country? I bet they are not. I bet the hon. Lady did not ask them about those things when they came in and she started talking to them just about child benefit for higher earners.

Baroness Morgan of Cotes Portrait Nicky Morgan (Loughborough) (Con)
- Hansard - - - Excerpts

Those same women—we are talking about these abstract women—are also extremely unhappy about the massive deficit left behind by the previous Government. Whether someone is a mother or a father, their children are facing an enormous debt. This Government are tackling the debt that the right hon. Lady’s Government left behind.

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

If we had not had the increase in the deficit during the global financial crisis, we would have seen recession turn into slump. We would have seen huge numbers of women lose their jobs and be stuck in long-term unemployment. We would have seen women and their families lose their homes and savings, so it was right to support the economy during the recession. As a result of our decisions, the economy grew and the deficit came down. Unfortunately, the Minister’s Government have decided to put a political timetable for deficit reduction into place far ahead of the interests of the economy. They are hitting public services far faster than they needed to, but they are also hitting jobs and pushing far more women out of work and on to benefits and the dole, so that they cannot support their families.

Even if the Minister for Women and Equalities believes that the Government should cut the deficit this far and this fast, how can she possibly think it is fair for women to be paying £11 billion of the £16 billion reduction that is coming from tax and benefits, while men pay £5 billion? How can it be fair for women to pay twice as much as men, despite the fact that they still earn less and own less?

Sometimes I think that the Prime Minister has a blind spot about women, but most of the time I think the truth is probably far worse. This is an ideological problem for the Tories and Liberal Democrats. Despite the fact that there are many women in both parties who strongly want to see greater progress for women, the overall ideology of both parties at the moment is that the public sector should not worry about supporting families, about who gets the money within families or about what happens to families, because that is a private matter that the public sector should not engage in. They believe that such things as tax credits are bad, because they breed dependency. The truth is that for millions of women, pension payments or tax credits create not dependence but independence. They give women greater choice about how to balance work and family life, and about whether they can afford to stay at home while the kids are young or cover their child care payments so that they can go out to work.

I know that this is not easy for the Minister, because she does not control what happens in other Departments. She did the right thing at the very beginning of the Government’s time in office when she warned Ministers of their obligations to consider equality and the impact of policies on women. Unfortunately, few of those Ministers seem to have been listening. Several may indeed have told her to calm down.

Even if the right hon. Lady is not fully aware of what is happening across the Government, she does have responsibility in her own Department, the Home Office, and there are serious grounds for concern there. The committee on women in policing, for example, did not meet for more than a year. It would be helpful if she told the House whether it has yet met, and whether it is now doing any work to support more women to get into the police.

The right hon. Lady has followed the previous Government’s example of announcing a cross-Government strategy to tackle violence against women, which we welcome. We also welcome her support for rape crisis centres, but she does not seem to be reflecting what is actually happening on the ground, with one in five domestic violence courts closing; specialist domestic violence officers in police forces up and down the country being cut as a result of her 20% cuts to the police; refuges having to close their doors; DNA not being held in rape cases in which charges are not brought; and sentences for rapists potentially being halved if they plead guilty. We have seen her refusal and reluctance to sign the trafficking directive until pressure mounted in the House, a U-turn on anonymity for rape defendants only after pressure from the House, and her resistance, still, of the Council of Europe’s convention on violence against women.

Those matters have deep consequences in practice. The POPPY project has told me of the story of Lucy, who was heavily pregnant and being treated for a life-threatening disease, and who had been severely beaten by her father. Lucy’s doctor was trying to find accommodation for her. Due to the squeeze on local government budgets, the homeless persons unit said that it could not treat Lucy as being in priority need, and social services wrongly said that they did not need to help her because the baby had not yet been born.

Lucy was getting ready to sleep on the street for the weekend. The doctor could find only one refuge space, but it was too far away. The worker explained to the doctor that Lucy needed a legal letter telling social services and the homeless persons unit that they had a duty of care to her. Experience showed that only that legal threat would make the services act. Unfortunately, as hon. Members know, legal aid cuts are now biting, and solicitors were scarce and none had the space to take Lucy’s case. In the end, her doctor persuaded the hospital contract doctor to write a letter. It was not his responsibility, but he did so, and Lucy was given temporary accommodation. It came in the nick of time, because the refuge workers said that on that day, five other women fleeing domestic violence came in and asked for help, and were not as lucky as Lucy. They tell me that some ended up sleeping on the street. That is the reality of what is happening to vulnerable women at the sharp end of the cuts.

Geraint Davies Portrait Geraint Davies (Swansea West) (Lab/Co-op)
- Hansard - - - Excerpts

My right hon. Friend mentioned in passing the fact that 65% of public sector workers are women, so they will be hit disproportionately. In my constituency, some 40% of workers are in the public sector. Does she accept, given what she has just said, that further cuts will tend to generate more domestic violence because of the economic pressure put on family life? There is a disproportionate impact on women not just economically but through domestic violence and the lack of funding to support increasing demand for services at a time when there are also cuts to the police budget. That is terrible for communities such as the one I represent.

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

My hon. Friend is right. There are increased pressures on services, as well as cuts to many resources. Women workers in public services are feeling the strain, too.

The Minister for Women and Equalities will doubtless tell us about the good work that she and the Minister for Equalities are doing to improve women’s lives, which we welcome, but we believe that we need to go further and do more. We want to support them in their work, but we need them to do much more than they are doing now. We need them to start standing up for women in the Government. We will back them if they do, and we will support them even if their colleagues do not. However, they must act. They cannot just stand on the sidelines. They have a duty to stand up for women in this country, and to get in there and fight. They need to undertake some proper, independent research on the impact of the cuts and their reforms on women. They should use the work that has been done by women’s organisations in Coventry with the university of Warwick, because if they do not, we will. We will work with local groups and institutions to monitor what is happening to women across the country.

The truth is that equality for women is not just about women, it is about everyone. A fairer society for women and an economy that uses women’s talents is better not just for families but for everybody. I have always believed that every generation of women would do better than the last, have more opportunities and choices, break through more glass ceilings and challenge more conventions. However, I fear for our daughters and granddaughters as a result of what the Government are doing. We owe it to them to further the march for women’s equality and not to be the generation of women who turn back the clock.

Baroness May of Maidenhead Portrait The Secretary of State for the Home Department and Minister for Women and Equalities (Mrs Theresa May)
- Hansard - - - Excerpts

Yet again, we have heard a speech from the Opposition Benches that included no recognition of the economic mess that the last Government left us, no constructive suggestions and no positive policy proposals for the future of this country. That is not constructive opposition, it is shameless opportunism.

Let me remind the Opposition once more why we are having to take action to restore sanity to our public finances. They left us with the largest budget deficit in our peacetime history, and they left us spending £120 million every single day just on paying the interest on the debt that they racked up. That is more than we spend each day on policing, schools or child benefit. They left us with a deficit higher than that of Portugal or Greece, which have had to go cap in hand to the EU for a bail out. The experience of those countries shows that the risks of not dealing with Labour’s deficit are not imaginary but very real.

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

Does the right hon. Lady think that the Labour Government should have cut public spending in the middle of a recession, and not allowed additional support for those who were unemployed and for businesses? If so, does she think the economy would have been growing at the time of the election if that had been done?

Baroness May of Maidenhead Portrait Mrs May
- Hansard - - - Excerpts

The Labour party, and the right hon. Lady as a former Treasury Minister, knows full well the risks of failing to deal with the deficit today. That is shown not just by what we are doing, but by what the Labour party itself said it would do if it was in government. I am talking about the position that we are in today, which was left us by the Labour Government, and the actions that we are having to take to deal with it. She must recognise that if the Labour party were in government today, it would be cutting £7 for every £8 that the current Government are cutting.

--- Later in debate ---
Baroness May of Maidenhead Portrait Mrs May
- Hansard - - - Excerpts

I shall make some progress.

Yes, the Government have taken the difficult decision to remove tax credits from higher earning families, but that has meant that we can increase child tax credits for the poorest families, protecting against increases in child poverty. In fact, that decision has meant that we can increase child tax credits by £180 and then £110 a year over and above the level promised by Labour. Those policies are not just about helping women, but about protecting the most vulnerable.

Yvette Cooper Portrait Yvette Cooper
- Hansard - -

The right hon. Lady said that the increase in tax allowances helps women. In fact, the figures produced by the House of Commons Library show that the increase in the tax allowance benefited 13,500 women and 16,800 men. Even what she did to benefit households benefited more men than women. In addition, her cuts—in child tax credits, child benefit and so on—all came from women. That is the point. She is taking far more from women, but when she gives some back, she gives more back to men.

Baroness May of Maidenhead Portrait Mrs May
- Hansard - - - Excerpts

It is absolutely clear that the majority of the lowest-paid workers are women, as are the majority of workers who were taken out of tax. The right hon. Lady refers again to the House of Commons Library figures—she keeps quoting them—but they were produced on a remit that she gave to the Library. Interestingly, she earlier spoke of the distribution and sharing of incomes within households. However, the assumptions on benefits made in the figures that she quotes go against what she was saying about what happens within families.

For the first time, people will have the information to judge for themselves whether they think the Government’s decisions are fair. We have been making some difficult decisions, but for the first time the Government published an overview of the impact of the spending review on groups that are protected by equalities legislation, including women. The analysis demonstrated that our decisions mean that services used by women are protected. With our Budgets in 2010 and this year, and with the spending review, we published unprecedented distributional analysis of our proposals, as the IFS has acknowledged. Such analyses were never published by the previous Government. Perhaps if they had thought to publish such information, they would have avoided policies that hit some of the poorest the hardest, such as scrapping the 10p tax rate, which my hon. Friend the Member for Devizes (Claire Perry) mentioned.

I reject the Opposition notion that we can judge the value of a policy simply by looking at the number of men or women who are affected by it. We should not reduce the amount that we invest in tackling youth unemployment just because more young men than young women are unemployed, but that is exactly what the Opposition’s analysis suggests we should do. They say that spending on tackling youth unemployment would be unfair on women.

We should not stop investment in policies that will return Britain to growth, such as cutting corporation tax, because more men run companies than women. However, again that is exactly what the Opposition’s analysis suggests we should do. I reject that argument. We need to ensure that more women can start businesses as we invest in getting Britain’s economy going. In fact, one symptom of the inequality between men and women is that more women than men rely on state spending.

We need to continue to support all women who need it, which is why we have ensured that we have protected child benefit and tax credits for women on low incomes, and why we will increase the value of the state pension, and protect benefits such as the winter fuel allowance and free bus passes for older women. However, if the previous Government taught us one thing, it is that more state spending might help to deal with the symptoms of inequality, but it does not address the causes. This Government are determined to get to grips with the causes of inequality between men and women, from job opportunities to the number of women in top, senior positions, to tackling the shameful levels of violence against women, and working to reverse the commercialisation and sexualisation of childhood.

--- Later in debate ---
Yvette Cooper Portrait Yvette Cooper
- Hansard - -

Does the Minister think that public spending should have been cut in the middle of a recession—and if it had been, will she tell us whether she thinks that we would have had growth by the time of the election?

Baroness Featherstone Portrait Lynne Featherstone
- Hansard - - - Excerpts

The point is that we are dealing with the structural deficit. If we do not get our house in order now we never will, and it will be future generations who suffer because of Labour’s failure to address it—[Interruption.] Chuntering away at me will not help the right hon. Lady.

Fairness is the reason why in April we lifted 880,000 of the lowest-paid workers out of income tax—and it does not stop there, because more will be added to their number every year of this Parliament. It is why we are protecting the lowest-paid public sector workers—the majority of whom are women—from the public sector pay freeze, and they will get pay rises. It is why we are increasing child tax credits for the poorest families by more than the level promised by the last Government. And it is precisely why we are getting to grips with the deficit so that we do not fritter away more and more on debt interest, and destroy the crucial public services that so many women need and depend on.

Cuts—and the impact that Opposition Members say they have—are not all that we care about for women. We care about being ambitious and about taking them out of poverty. We care about giving them the tools to lift themselves out, not just continuing what went on before. If fairness were simply a matter of benefits, taxes and snapshot comparisons of income, it would be easy to achieve—