§ 20. Hugh Bayley (City of York) (Lab)What contribution the national minimum wage has made to reducing the gap between male and female earnings for low-paid workers. [143337]
§ The Minister for Women and Equality (Ms Patricia Hewitt)Around 70 per cent. of those who will benefit from the latest uprating of the national minimum wage are women. There is no doubt that the national minimum wage has contributed significantly to the closing of the pay gap for part-time workers, the vast majority of whom are of course women.
§ Hugh BayleyGiven the important role played by the minimum wage in closing that pay gap, especially for lower-paid and part-time female workers, would the Minister consider instructing the Low Pay Commission to consider specifically the impact of its recommendations on future minimum wage rates and on the gap between men's and women's pay?
§ Ms HewittMy hon. Friend makes an interesting and important point. The Low Pay Commission is well aware of the extent of the problem of the gender pay gap. When advising on upratings, it pays particular attention to the balance that must be struck between helping the low paid by increasing the minimum wage and ensuring that employment levels are maintained. I will, however, reflect further on what my hon. Friend has said, and discuss it with Adair Turner, chair of the commission.
§ Mrs. Caroline Spelman (Meriden) (Con)When women take leave to care for their children, the issue of pay on re-entry to the workplace becomes a real problem. According to figures from the British household panel survey, a woman rejoining the work force after taking time off to serve as a full-time carer is paid, on average, 16 per cent. less than her previous wage. Does the Minister agree that such discrimination against female returners must be tackled if we are to see a significant reduction in the pay gap?
§ Ms HewittThe hon. Lady is absolutely right. The longer women stay out of employment to care for children or elderly relatives, the worse will be the difficulties that they are likely to encounter on their return. We need to think carefully about what we do to strengthen their rights. The extended maternity leave package that we introduced in April—maternity leave of up to 12 months is now possible—ensured that more women would benefit from the right to return to the same job, or a job at the same level. I look forward to receiving help and support from the Conservatives, rather than their usual whingeing about red tape when we discuss proper standards for people at work.
§ Sandra Gidley (Romsey) (Lib Dem)The national minimum wage has been welcomed and has improved the lot of many women, but 4.7 million women—43 per cent. of female employees—still earn less than £5 an hour. Many work in the care industry, in jobs that are traditionally low-paid. What is the Minister doing to bring about fairer pay levels in industries in which women employees predominate?
§ Ms HewittMy memory may be faulty, but I do not recall our having the enthusiastic support of Liberal Democrats when it came to legislating for the national minimum wage. Nevertheless, I welcome the hon. 1193 Lady's belated conversion.
On low-paid occupations, the hon. Lady is quite right: 60 per cent. of women work in just 10 occupations, and those are typically much lower paid and account for the bulk of the pay gap. Of course, we are not only ensuring fairer pay for women in public service occupations through our investment in public services; 1194 through our skills strategy, we are also making it much easier for women to get better skills, and therefore to get better and higher paid jobs. The hon. Lady should not forget the very important role of the child tax credit and the working tax credit in helping to ensure that, even for people in low-paid jobs, work pays and enables people to support themselves and their families