Will the government improve the parental leave system?

The Women and Equalities Committee has released a comprehensive report calling for significant reforms to the UK's parental leave system. The report says that the current system is inadequate and the Committee wants the government to make substantial changes to it. 

This article looks at the key recommendations. 

Increase in Statutory Pay

The low rates of statutory pay mean that many parents, particularly fathers, are deterred from taking parental leave. The rate of statutory pay is less than half of the National Living Wage. by comparison, fathers in Spain receive 100% of their earnings during a 16-week leave period. 

The committee recommends increasing statutory paternity pay to match maternity pay in the first six weeks, set at 90% of average earnings.

Extension of Paternity Leave

The UK offers one of the shortest paternity leave periods among developed countries, with a maximum of two weeks. In Norway, fathers can take between 14 and 19 weeks leave depending on the pay option they choose. In Japan fathers can take up to 52 weeks leave - which is seen as equality at it's finest! 

The Committee says that paternity leave in UK is trailing behind. It suggests it should be extended to six weeks over the course of this parliament. 

Inclusion of self-employed parents

The current system excludes self-employed fathers from statutory paternity leave and pay. The Committee wants the government to introduce Paternity Allowance, similar to Maternity Allowance, to provide financial support to self-employed fathers. This change would address the financial hardships faced by self-employed parents who take time off to care for their newborns.

Reform of Shared Parental Leave (SPL)

Currently the SPL scheme allows mothers to transfer up to 50 weeks of leave and 37 weeks of pay to their partner.  It's been criticised for its complexity and low take-up rates. The report calls it “extremely difficult for most parents and their employers to understand”. 

The committee recommends simplifying the eligibility criteria and providing financial incentives to increase participation. The report recommends increasing statutory paternity pay to 90% of earnings during two weeks of paternity leave and allowing fathers, and other parents, to be eligible for four weeks of leave at 90% of their earnings within the SPL scheme.  This would enable them to have six weeks of sustainably paid leave.

Support for kinship carers

Kinship carers are usually relatives or close friends who take on the responsibility of caring for children following family emergencies, such as severe illnesses or the death of a parent. The report highlights the lack of statutory leave for kinship carers. It recommends extending statutory leave and pay to kinship carers and providing additional support to single parents, ensuring they receive equitable leave entitlements.

Single parents

With regards to additional support for single parents, the report recommends introducing options for single parents to transfer some or all of the co-parent's entitlements to designated family friends or relatives who can assist with caregiving responsibilities. As an example, in Sweden, single parents are allowed to transfer up to 90 days of paid leave to “significant others” such as grandparents.

Conclusion

The Women and Equalities Committee's report presents a compelling case for overhauling the UK's parental leave system. It accepts that the reforms will need substantial financial investment, but it believes they will yield significant economic and social benefits. 

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