PARLIAMENTARY DEBATE
Future Earnings: Impact of Socioeconomic Disadvantage - 18 December 2024 (Commons/Commons Chamber)

This Government are determined to break the link between background and success. Through the opportunity mission and the child poverty taskforce, we will break down the barriers to opportunity for all, by setting up every child for the best start in life, helping them to achieve and thrive, and building skills for opportunity and growth, so that background is no barrier to success.

Research from the Bloody Good Period campaign shows that one in five women and girls is now experiencing period poverty, so not only is there a socioeconomic disadvantage, but a further gender penalty. This gender-based injustice costs the UK billions—some £3.3 billion—in lost work annually. Will the Minister tell the House what the Government are doing to tackle period poverty, and are there plans for the taskforce on this to reconvene?

We are tackling the root causes of poverty through measures to make work pay by boosting the living wage and investing in our public services, so that no one, including women, have to go without the essentials. There are also lots of great programmes that support women and girls with period products, such as the scheme in my own Department, which provides free products in education settings.

Proper paternity and maternity pay are essential for breaking the link between current income and further life opportunities for families. Currently, one in five fathers does not take the paternity leave available to them because it is financially inadequate. Inadequate paternity leave drives family inequality, increases the gender pay gap as women pick up greater caring responsibilities, and lowers household income. Does the Minister agree that, while the Conservative party might think that paid parental leave is too high, we on the Labour Benches recognise its crucial role in giving children the best start in life? What actions are Ministers considering to better support parents and families?

I strongly agree with my hon. Friend that, while the Conservatives have said that they think parental leave is excessive, we want to give families more choices. Through the Employment Rights Bill, we will make paternity leave available from day one in a new job and enable it to be taken after shared parental leave. We are also committed to reviewing the parental leave system to ensure that it better supports working families.

Independent research from the Social Mobility Foundation highlights a stark class pay gap, with professionals from working-class backgrounds earning, on average, 12% less than their more privileged counterparts in the same roles, and one in 10 people from lower socioeconomic backgrounds finding it difficult to get higher-skilled managerial and professional occupations. Despite the fact that socioeconomic background remains one of the biggest determinants in chances for life for young people in this country, few large organisations monitor it. Will the Minister consider mandating larger organisations to monitor socioeconomic backgrounds, so that we can properly highlight social mobility and give it the attention that it deserves?

I share my hon. Friend’s concern in this area, which is why we are committed to enacting the socioeconomic duty of the Equality Act 2010, and we shall give more information on this in due course. I also encourage businesses and organisations to collect data where they can, so that we can take action to tackle some of those deep-rooted inequalities that my hon. Friend describes.

Merry Christmas to you and yours, Mr Speaker.

There is a clear link between low household income and poorer educational outcomes leading to reduced future earnings. In Stoke-on-Trent, median pay is nearly £70 less per week than the England average. Does the Minister agree that tackling regional income inequalities is critical if we are to promote social mobility and to enable all of our people to succeed in life?

I agree with my hon. Friend that it is absolutely crucial that we take action on regional inequalities. He champions that cause very strongly on his constituents’ behalf. He will know that we have set out an ambitious plan for the future of the minimum wage, and we are taking action to make sure that all workers receive more money in their pockets to spend. He also draws our attention to the importance of children having a great start in life, which is why we as a Government are committed to making sure that more children than ever arrive at school and get the support they need, so that, by the end of reception, they are ready to move on to the next stage in their journey.

In the City of London, one of the big remaining challenges is to ensure that the maximum number of people from the widest socioeconomic backgrounds can get into that industry. Recently, I met people from Progress Together. Vincent Keaveny, a recent Lord Mayor of the City of London, has made massive progress to understand that the data collection process does not need to be expensive. Will the Secretary of State get in touch with her ministerial colleagues and the Financial Conduct Authority to alert them to the opportunity to collect data at little expense, which would really raise the profile of the remaining challenge?

I am more than happy to do that. I congratulate the right hon. Gentleman on his work in this area and the attention that he has drawn to it, because it is a cause that we can all get behind. There is more that employers can be asked to do, as he describes, and more that we can do as a Government. That is why it is important that all young people have access to good work experience and careers guidance, so that they understand the full range of opportunities out there in the world.

Women carers are far more likely to reduce their working hours or give up work entirely to look after their loved ones, putting them at a significant financial disadvantage. Does the Secretary of State agree that the Lib Dem policy to reform social care and introduce free personal care would keep more women in work for longer?

I understand the hon. Lady’s important point. She will know that in the Budget we increased the threshold for the carer’s allowance and delivered a big boost to the payments that people can receive, but I understand the wider challenge that she sets out around social care. That is why the Health Secretary is taking action to ensure that we transform social care across our country. I am sure that Ministers would be happy to discuss that with her further.

I do not know which Bill the hon. Lady has been reading, but it is not the Bill that we presented to the House yesterday. I am determined to drive high and rising standards right across our schools system. She might be satisfied that one in four disadvantaged children leave primary school without reaching a good standard in English and maths, but I am not happy about that. Nor am I happy about the fact that one in five children are persistently absent from school and that we inherited a special educational needs and disabilities system in crisis. We will turn that around, and deliver better life chances for all our children.

Low-earning women are far less likely to have sufficient private pensions than their male counterparts. Is that why the Secretary of State decided that governmental responsibility ends when working age ends?

The hon. Lady raises an important point about some of the differences in pensions. I am more than happy to pick that up with the relevant Minister to ensure that she receives a full response.

I call the shadow Minister.

Merry Christmas, Mr Speaker. Here’s to festive tipples in our locals, but it is certainly not a cheery Christmas for the Women Against State Pension Inequality, whom Labour has betrayed.

Hospitality is at the heart of our economy, with a diverse workforce: 17% of the sector’s workers are disabled under the Equality Act 2010; 20% are from ethnic minority groups; and over 54% are women. Will the Secretary of State tell the House what conversations have taken place between her and the Chancellor on the chilling effect on future earnings of the Labour Government’s jobs tax and higher business rates, underpinned by £3.4 billion of increased costs according to UKHospitality, which will drive down future earnings?

I agree that the hospitality sector is crucial to our economy, and at this time of the year, when many people will be working across Christmas, I pay tribute to them for their work and thank them for their contribution to our economy. On her wider question, the hon. Lady knows as well as I do that the Government inherited a £22 billion black hole from the Conservative party. We have had to make some difficult decisions in order to stabilise our economy and get it back on track.