The government has announced a significant review into the UK’s parental leave system. The review is aimed at modernise existing provisions for paternity, maternity, and shared parental leave. This move comes as campaigners and parliamentary committees have long highlighted the system’s inadequacies, signalling a crucial moment for working parents and the future of family leave policies.
Ministers acknowledge the current framework is “really confusing,” offering eight different types of leave, and falls short in generosity and support compared to other developed nations, impacting employee rights and work-life balance. A recent report by the Women and Equalities Committee severely criticised the UK’s system as “one of the worst in the developed world,” citing “fundamental flaws” and urging “bold” action, albeit noting the need for substantial investment.
Campaign groups have welcomed the review. “The Dad Shift” described it as the “best chance in a generation to improve the system and make it actually work for working families.”
Business Secretary Jonathan Reynolds pointed out that a third of fathers currently take no paternity leave, and shared parental leave uptake is minimal. He emphasised the necessity of this 18-month review, given that the system hasn’t been reformed in decades, despite significant shifts in working habits and family structures.
However, the initiative faces scrutiny, with Shadow Business Secretary Andrew Griffith warning of potential job losses if additional costs are imposed on employers.
Statutory leave
The government’s review will specifically examine statutory leave, which represents the legally mandated minimum employers must provide, funded by the state. It’s worth noting that some companies offer enhanced benefits beyond this statutory minimum, using their own funds.
Statutory Maternity Leave permits most new mothers and birthing parents to take up to 52 weeks off work. Statutory Maternity Pay is disbursed for up to 39 weeks. For the initial six weeks, it covers 90% of a person’s average weekly earnings (pre-tax). For the subsequent 33 weeks, the payment is either £187.18 per week or 90% of their average weekly earnings, whichever amount is lower. Eligibility for statutory maternity pay excludes self-employed individuals or those earning less than £125 per week.
Statutory Paternity Leave, established in 2003, grants most new fathers and second parents in the UK (inclusive of all partners regardless of gender, following birth, surrogacy, or adoption) up to two weeks off. Similar to maternity pay, eligible individuals receive £187.18 per week or 90% of their average earnings, whichever is less, for these two weeks. This amount is notably less than 50% of the National Living Wage. Self-employed fathers or those earning under £125 weekly are not eligible for statutory paternity leave and pay.
Shared parental leave
Shared Parental Leave, introduced in 2014, enables parents to divide up to 50 weeks of leave and up to 37 weeks of pay after the birth or adoption of a child.
The government acknowledges the notably low uptake of shared parental leave, and that approximately one-third of fathers forgo paternity leave due to financial constraints. George Gabriel, co-founder of The Dad Shift campaign, commented that while paternity leave was “groundbreaking” upon its introduction by the last Labour government, its stagnation has rendered it the “least generous in Europe.” He expressed enthusiasm for the review and anticipation for significant changes.
Shadow business secretary Andrew Griffith countered, stating, “If you’ve no job in the first place it doesn’t matter how much family leave you get.” Conversely, Rachel Grocott, chief executive of the Pregnant Then Screwed charity, argued that enhancing parental leave would contribute to closing the gender pay gap and provide children with a stronger start in life, calling investment in the system a “no-brainer.”
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