Labour MPs highlight economic loss from gender inequality
A group of influential female Labour MPs have warned Andy Burnham and John Healey that £113bn is being lost in economic activity every year because women are excluded from paid work on equal terms with men, reports BritPanorama.
In a strategic move ahead of Wednesday’s Budget, a dozen MPs with the Women’s Budget Group (WBG) and the thinktank the Good Growth Foundation (GGF) are set to publish a report making demands for systemic changes.
The document, titled A Political Economy for Women, addresses the underrepresentation of women in key decision-making roles concerning the Budget, particularly with a male chancellor replacing Rachel Reeves and another male Labour prime minister.
The collection of essays aims to position women’s engagement in the economy as central to Labour’s economic and industrial strategy.
Analysis from the WBG indicates that the UK economy forfeits £113bn in gross value added due to unequal pay and work terms for women. The report concludes that “this is failure of design rather than an accident.”
Moreover, both the WBG and GGF warn that the situation is deteriorating. Initial analysis in 2023 identified the figure at £88.7bn, illustrating a troubling trend.
Some regional economies reportedly forego close to a tenth of their entire annual output from excluding women from the labour market, with the impact most heavily felt in areas that can least afford it.
Significantly, more than a quarter of working-age women are economically inactive, a rate notably higher than that of men.
The essays advocate for gender inequality to be viewed not as a peripheral issue but a central concern in economic strategy and policy-making.
Emily Darlington, MP for Milton Keynes Central, articulates that the UK could lead globally in technology by integrating women into the industry.
While sectors like Femtech are anticipated to double in size to £100bn by 2030, only 2p of every £1 in UK venture-capital funding is allocated to female-founded businesses, with females constituting roughly 13 percent of senior roles in investment teams.
Her insights are timely, as Mr Healey is expected to propose incentives for tech investment in his Budget.
Speaking ahead of the Budget, Ms Darlington stated: “If we are to see growth in every postcode we need action. The Treasury and ministers know this is an issue but they need to move the conversation away from niche equality and inclusion interventions.”
She underscores a need for a structural redesign that positions women at the forefront of policy development, claiming it is crucial to unleash Britain’s full potential and secure lasting economic growth.
The report also features contributions from other MPs. Sarah Russell advocates for a cap on childcare costs, while Anna Dixon highlights findings from the Interim Milburn review, revealing that over 28 percent of NEET young women are economically inactive due to family responsibilities, which is significantly higher than their male counterparts. Maya Ellis calls for a minimum of six weeks of paternity leave paid at 90 percent of wages.
