Women's Incomes (Hansard, 21 February 2000)

§ Ms Jowell

We have published today and will be placing in the Library our document "Women's Incomes over the Lifetime".

The research set out to examine the key features of women's incomes over their lifetimes, and to identify, and quantify, the factors behind men and women's lifetime incomes, drawing on existing research and undertaking new analysis. While we know quite a lot about income comparisons between individuals at particular moments in time, these do not tell us about the impact over women's lifetimes of the pattern and level of their earnings, the effect of the tax and benefit systems and the importance to women's incomes of transfers within families.

Women's lives have undergone a revolution in the last 25 years. Nearly eight out of 10 of all mothers are in paid work. Overwhelmingly mothers work because they want to—seven out of 10 saying they would rather work even if they could afford not to. But when children are young and dependent there must be a choice; therefore the Government has delivered the Working Families Tax Credit which guarantees low-paid families with one full-time worker a minimum income of £190 a week with no tax to pay on incomes below £220.

Lone parents often find it the most difficult to go back to work, but thanks to the New Deal for Lone Parents many are now finding jobs that are giving them on average, an extra £39 a week in their pockets.

Women already working are benefiting from a whole host of policies put in place by the Government. The National Minimum Wage, which the Government have announced will be uprated by 10p in October, has given around 1.5 million people, the majority of whom are women, an immediate pay rise. The new 10p tax rate halved the tax paid by over one million women.

Maternity pay has been improved for part-time women, women who have only been working for a year and those who are self-employed. Therefore getting pregnant while in work should no longer mean giving up jobs.

Many women work part-time because it gives them the best chance of balancing work and home life. New improved part-time employment rights mean that women working part-time now have the same rights, and therefore security, as other employees.

And the biggest ever increase in child benefit last April, straight into mum's purse, will help ensure women are not worse off in work. Next April will come another boost so that mums get £15 for the first child and £10 for the second.

Through this action we are committed to equipping women for the challenges of the new economy—one that values a broader range of skills, diversity and knowledge and one that provides new opportunities for women.