Throughout the UK, in all sectors and at all levels, women earn less than men. A woman educated to GCSE level can expect to earn just under a quarter of a million pounds less than her male counterpart over her lifetime if she has no children – the gap for mothers is still wider.
If I were Minister for Women, I would make closing the pay gap a priority not only because it is important to millions of working women, but because the gap in pay sustains broader inequalities between the sexes. The pay gap affects decisions that couples make about sharing unpaid caring work. In most cases, men earn more than women so any decision about taking a career break or working part-time to care for children will be heavily influenced by the fact that the couple are less likely to be able to afford to lose the male partner’s wages. Because women are more likely to reduce their hours to take on caring responsibilities, and earn less when they do work, they are more likely than men to live in poverty throughout their lives and, in particular, more likely to be poor in old age.
The Equal Opportunities Commission Task Force on equal pay concluded that, with concerted action by all key players, it would be possible to eliminate the gender gap entirely within eight years. As Minister for Women I would bear in mind that the two most significant reductions of the pay gap – following the introduction of equal pay legislation and the national minimum wage – happened not because employers were persuaded to change their policies, but as a result of action by a Labour government.
I would overhaul equal pay legislation to prevent cases dragging on for years, which is unfair to both employees and employers. I would take on board the recommendations of the EOC’s Task Force, including introducing a system of compulsory pay audits and allowing women in female-dominated industries to claim equal pay with a hypothetical male comparator. Increasing the level of the national minimum wage would have a huge impact on the pay of the lowest paid women, particularly part-time workers.
As Minister for Women I would want the public sector to take a lead on equal pay which means persuading the Treasury to fund closing the pay gap in the public sector. I would make pay audits and a concrete strategy to close the pay gap a condition of any contract with the public sector.
Of course, equal pay alone will not bring about the equality between women and men that a Minister for Women aims for. Women will always find it difficult to gain equality at work unless there is equality in the home, and a fairer sharing of childcare and other caring. But it would be an important start in tackling women’s poverty and encouraging broader equality between the sexes.