What we know about the UK's parental leave review

Yahoo

5 hours ago

The UK's parental leave system is one of the least generous compared to other developed countries. Both statutory maternity pay, aimed at employed women, and maternity allowance – for those who are self-employed – are now worth less than half of the weekly national living wage. British fathers get the worst deal in Europe, with just two weeks off at pay that amounts to less than half the minimum wage.
In a bid to address the long-standing problem, the government has launched a "landmark" review of parental leave and pay – a move welcomed by families and campaigners alike. But what exactly will ministers be reviewing, and what could happen at the end of the 18-month review?
According to ministers, it will delve into the entire parental leave system, including maternity leave, paternity leave, adoption leave and shared parental leave. It will also look at kinship care, when a child lives with relatives or friends if the parents are unable to care for them.
'They'll be examining both the length of leave and pay rates, as well as eligibility – particularly looking at what entitlement self-employed people should get,' says Alex Lloyd, co-founder of campaign group The Dad Shift.
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'Currently, self-employed people get absolutely no paternity leave or shared parental leave, and drastically reduced entitlement to maternity pay compared to employees.'
A source of financial anxiety for many new mums, statutory maternity and adoption leave are paid at 90% of a mother's average weekly earnings for the first six weeks. Then for the next 33 weeks, they receive whichever is the lower of that 90% figure or £187.18 a week.
For self-employed women – or those who don't meet the strict eligibility criteria – the situation is equally poor. Those who are self-employed are eligible for maternity allowance, which is currently between £27 and £187.18 a week for 39 weeks.
'Both maternity, paternity and adoption pay are 43% less than the national living wage, causing many families to experience financial hardship as a result of taking time out of work when they have given birth,' says Rachel Grocott, CEO of Pregnant Then Screwed.
'Dads and non-birthing partners are forced to suck up the same benefits for their two weeks. This has long-lasting negative implications for babies and parents.'
Clearly, one of the key issues is pay. Currently, new parents are struggling to afford basic necessities like food. A survey by Maternity Action and Unison found that a significant number of new mothers are skipping meals to afford essentials, or are eating smaller meals to cut back on food bills. For many single parents or low earners, low maternity pay and high living costs mean they have no choice but to return to work quickly — putting their physical and mental health at risk.
Meanwhile, new fathers and partners miss out on crucial bonding time with their children. They're forced to make an impossible choice between keeping their family afloat financially or being present for them, while women shoulder most of the care burden after childbirth.
'Campaigners are calling for a minimum of six weeks paternity leave paid at 90% of salary,' says Lloyd. 'That would be a significant step forwards but would still be below the European average of eight weeks at full pay, so we would also like to see concrete provisions to further increase the length and pay in the near future.'
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Experts have emphasised that securing better paternity pay would also benefit all parents, not just fathers. In fact, a recent report from the Institute for Policy Research at the University of Bath found that extending paternity leave to six weeks, paid at 90% of average earnings and available from day one of employment, could deliver net social benefits of up to £12.8 billion annually.
'Fathers want to be more involved and mothers want to stay connected to work,' says Dr Joanna Clifton-Sprigg, an economics lecturer at the University of Bath. 'The current system lets everyone down. We're calling for a policy that matches what modern parents want. Six weeks of well-paid leave is a simple and cost-effective place to start.'
Campaigners are also calling for the complex parental leave system to be made less complicated. At the moment, it effectively excludes a lot of self-employed people, fathers and co-parents – and there are many caveats that lead to hidden inequalities.
For example, there are strict eligibility criteria for statutory maternity pay. To qualify, a new mother must have worked for the same employer for at least 26 weeks by the 15th week before her due date — and still be employed at that time.
'We would also like to see the government remedy the injustices in maternity allowance,' says Rhian Beynon, senior public affairs and communications officer at Maternity Action.
'If a maternity allowance recipient is claiming universal credit, universal credit will treat the maternity allowance as unearned income and claw it back pound-for-pound, so effectively the claimant is no better off. By contrast, universal credit treats statutory maternity allowance as earned income.'
In the UK, single parents, kinship carers and students often fall through the cracks of the current parental leave and pay system. While single parents can access statutory leave and pay if they meet employment criteria, they face greater financial pressure and lack the option to share leave. In reality, single parents often face greater challenges due to lower household income, limited flexibility, and less practical support — all made worse by a system that assumes a two-parent household.
Kinship carers, like grandparents or relatives raising children, are usually excluded unless they have legal parental status. Students, unless employed, don't qualify for statutory maternity or paternity pay and often rely on benefits instead. Campaigners argue that these groups are overlooked and are calling for more inclusive and flexible parental leave policies.
The review will take 18 months to complete, but campaigners say pregnant women and new parents can't wait until 2027 for legislative action on the poor state of parental pay.
The UK's parental leave system is widely seen as outdated, underfunded, and unfair — especially for those who don't fit the traditional two-parent, full-time employed model. With some of the lowest rates of pay and shortest periods of leave in the developed world, it places huge financial strain on new parents, and forces many back to work too soon.
'Before the end of the review, the government needs to increase maternity pay significantly beyond the rate of inflation unless more new parents are to be pushed into poverty and debt for having a child,' says Beynon.
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