Oral Answers to Questions — Minister for Women – in the House of Commons at 11:30 am on 27 January 2005.
What recent assessment she has made of the rates of pay for men and women doing the same job.
Although the gender pay gap is at an all-time low, at 14.4 per cent. it is still too high. That is why we promoted equal pay reviews, which have now been completed by all 88 Government Departments and agencies, and strengthened the law in this area.
It is as astonishing as it is unacceptable that, despite the growing number of women workers—indeed, they now outnumber men in half the local authority areas in Britain—they and we tolerate female rates of pay that are up to 25 per cent. lower than male ones. Does my right hon. Friend agree that, in addition to the legal and moral question, such inequality is now having an adverse economic impact? Women having less money to spend is unnecessarily restricting development of the service sector, as we see in many parts of the United Kingdom.
Like my hon. Friend, I have always argued that unequal pay is both unfair to the individuals affected and damaging to business, employers and the economy. Local councils, like other public sector bodies, are absolutely committed to equal pay and I am glad to say that, in most cases, they have reviewed their pay structures to rectify the historical wrong that has been done to millions of women.
Will the right hon. Lady acknowledge that the Opposition entirely agree with everything that she has just said, and that equal pay for men and women is an extremely important principle that we defend? However, principles are no good unless they can be enforced. Will she consider the Equal Opportunities Commission's proposal to make enforcement of equal pay rates easier, while not putting unnecessary burdens on businesses, particularly small businesses?
We are of course looking carefully at the EOC's proposal. Indeed, we established the Women and Work Commission, which is chaired by Baroness Prosser, to examine the action that needs to be taken to deal with the fundamental causes of the gender pay gap. We have already strengthened the law in this area and are creating specialist equal pay tribunals. We will, of course, continue to look at proposals for further action, while recognising that we must balance the demands that we make on business with the proper standards that we set to protect individuals. I welcome the hon. Lady's commitment to that principle.