Money

Despite sustained attempts to close the gap, there is still a difference between the pay received by men and women for doing the same job. Currently, this pay gap is running at 17.2%[3] on an internationally comparable measure – although the lowest since records began, this difference is clearly not acceptable. Part time work is currently up to 36% less well paid per hour for women compared to men, with 42% of women in employment working part time, compared with around 10%of men.[4]

We acknowledge that the average woman is currently significantly worse off than the average man in terms of both private and state pension provision. Our existing pensions policy, Action to Improve Life for Older People (March 2005) sets out our plans for a Citizens Pension.

Compared to men, women are less likely to be in debt, but are more likely to have problems with any debt they do have and are far more likely to use sub-prime credit forms. Over-indebtedness disproportionately affects women; as lone-parents, carers, low-paid workers and those with fluctuating working patterns.[5] Transition periods in women’s lives often leave them vulnerable to debt, for example relationship breakdown, change of employment circumstances or a new child.

Divorce or separation is a traumatic time for both parties, and statistics show that women often go on to experience a great deal of challenges as a result of such transition. In addition, there is little legal protection for the increasing number of couples who choose not to marry at all, leaving both men and women vulnerable. This legal black hole is exacerbated by the continuing incorrect belief that there is such a thing as ‘common law marriage’ which gives cohabitants the same rights as married couples.[6]

  1. How can/should the government act to tackle a) the gender pay gap, b) the pensions gap, c) the inequalities caused by part-time working?
  2. What advice should be made available publicly (e.g. through schools, FE/HE institutions, the Citizens’ Advice Bureau) to assist individuals in managing their finances and understanding the support systems available?
  3. How can we make sure that women are better informed about their rights and legal position in a relationship? Are there any legislative changes you would make to clarify the position between unmarried co-habitants? For those who don’t feel comfortable with marriage, should the option of civil partnerships be extended to mixed-sex couples?

[3] http://www.statistics.gov.uk/cci/nugget.asp?id=167
[4] http://www.statistics.gov.uk/elmr/02_07/downloads/ELMR02_07Walling.pdf
[5] Department of Trade and Industry, Over-indebtedness in Britain, Elaine Kempson, 2002
[6] British Attitudes Survey January 2008.

One Response to “Money”

  1. Elzbieta Vine Says:
    June 5th, 2010 at 8:17 pm

    To tacle to pensions’ gap, the time that women take off of work to bring up their families should be counted towards pension, that means National Contributions should be paid by the Governemnt on behalf of those women.

    Two mechanisms should be helpful in takcling the gender pay gap:
    1. The salaries of all employees in the company should be openly published, and this must be required by law, and
    2. there must be a mechanism that allows employess to aks their employer ( in writing) to explain a pay gap, if any exists.
    Please leave your comments, if you have any.

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