Economic Impact of Coronavirus More Severe for Women Shows Report Published by Women and Equalities Committee

 
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The Women and Equalities Committee has published a Statement on Unequal Impact? COVID-19 and the gendered economic impact highlighting how the pandemic has had a more negative impact on women than men.

Inequality problems have been made worse for many women during the pandemic with government economic support policies "skewed towards men", MPs have found. The economic impact of coronavirus has affected men and women differently because of existing gendered economic inequalities, the over-representation of women in certain types of work, and because of actions the Government has taken. The Committee launched this inquiry to find out how and why, and to focus on what could be done to sustain and improve equality.

The report has underlined concerns that Government policies to date have prioritised recovery of male-dominated sectors, creating unequal outcomes for men and women, exacerbating existing inequalities. This has already been experienced by the professional beauty industry which has been one of the worst-hit sectors after the government showed a gross disregard for the £28 billion industry. Being the first to close and the last to open despite stringent health and safety measures in beauty salons, thousands of beauty businesses are struggling to stay afloat due to a lack of sector-specific support form the government.

The report calls on the Government to:

  • Conduct an Equality Impact Assessment of schemes to support employees and the self-employed: - CJRS, the furlough scheme – and the Self Employed Income Support Scheme. This should draw on existing inequalities. This would better protect those already at a disadvantage in the labour market, including women, and could inform more effective responses to future crises.

  • Assess the equality impact of the Industrial Strategy and the New Deal, and analyse who has benefited from the industrial strategy to date. Priorities for recovery are heavily gendered in nature, with investment plans skewing towards male dominated sectors.

  • Conduct an economic growth assessment of the care-led recovery proposals made by the Women’s Budget Group. (Treasury)

  • Maintain increases in support, including the £20 increase to the Universal Credit standard allowance (DWP)

  • Review the adequacy of and eligibility for Statutory Sick Pay. Women are over-represented among those who are not eligible.

  • Legislate to extend redundancy protection to pregnant women and new mothers

  • Review childcare provision to provide support not only for working parents but those who are job seeking or retraining

  • Reinstate gender pay gap reporting – and more, including parental leave policies, ethnicity and disability.

  • Provide better data to improve reporting and analysis for on how, for example, gender, ethnicity, disability, age and socio-economic status interact to compound disadvantage.

  • Ensure that the GEO and Minister for Women are more ambitious and proactive

Advising and providing evidence to the committee, NHBF (National Hair and Beauty Federation), has welcomed the report in their statement;

“The NHBF welcomes the Women and Equalities Committee’s report as it shines an important light on the harsher economic impact suffered by women during this pandemic. Any recommendations that lead to greater equality in terms of opportunity and support is hugely positive. As an industry made up of 82% female business owners supporting an 88% female workforce, the hair and beauty sector has felt the full force of this pandemic, with no sector specific support from government despite our repeated calls and evidence showing increasing debt, businesses folding and growing job losses.

As the report highlights, government support for industries during the pandemic has been largely focused on male dominated sectors such as construction. The NHBF continues to call on the government to show its commitment to gender equality and introduce an immediate Personal Care Fund to ensure our businesses survive the current closures and are able to prepare for reopening when it is safe to do so.

Beyond this, we need support after re-opening to keep cash in these businesses so they can recover. Just like the hospitality sector, we are a service-based industry that can recoup very little VAT, but we can’t diversify into takeaway and online sales. A targeted a VAT cut to 5% would allow these almost entirely female businesses the cash flow to recover, invest in staff and apprentices, and once again be the heart of their high streets and communities.  Right now, it feels like we are last in line for support, flippantly disregarded within Parliament, despite the billions of pounds we contribute to the economy each year.”

 
Business and EducationNatalia Kulak