Clause 73

Part of Equality Bill – in a Public Bill Committee at 12:00 pm on 23 June 2009.

Alert me about debates like this

Photo of John Penrose John Penrose Shadow Minister (Business, Innovation and Skills) 12:00, 23 June 2009

I applaud the hon. Lady’s instinct in tabling the two amendments, even though I suspect that we would disagree strongly about the means and mechanisms. It is important to put it on record that I hope and expect Committee members from all parties  to share the common goal—I am sure that we do—of reducing and eliminating the gender pay gap by whatever means necessary.

However, we disagree with the hon. Lady’s proposed mechanisms. Although a degree of employer-based discrimination is clearly part of the gender pay gap, most analyses also make the valid point that a number of other important factors are at work. It is important not to pursue or base legislation on the notion that employers are the only cause. It is also necessary to ensure that any means that we take to drive through reduction of the gender pay gap are proportionate.

With your permission, Mr. Benton, I will expand on our concerns during clause stand part debate, but we contend—I think that the Government’s own analysis supports this—that the gender pay gap has many other causes, which have to do with disadvantage in society in everything from access to education and onwards. However, within companies where differentials exist between men’s and women’s pay, any direct discrimination must clearly be dealt with vigorously and strongly. That is why, during our debate on clause 72, the hon. Lady and I both emphasised our support for measures designed to ensure that it is illegal to have a contract term that stops men and women in the same company communicating about their pay. That is an important mechanism. However, there are many other reasons why pay differentials might exist in the same company. For example, women might not be well represented at senior levels. That would inevitably lead to differentials.