Parental leave under the microscope: is a new era for working families on the cards?

On 1 July 2025, the UK government launched a wide-ranging review of parental leave and pay entitlements, as part of its broader “Make Work Pay” agenda. It's got grand ambitions. It wants to modernise the system to better support working families, promote economic growth, and reflect the realities of modern working life.

Purpose and scope

The review, which will run for 18 months, begins with a call for evidence open until 26 August 2025. It will examine the full suite of family-related leave and pay entitlements—including maternity, paternity, adoption, shared parental leave, and unpaid parental leave—with a view to improving outcomes for families, employers, and the wider economy. The review also links to efforts to alleviate child poverty and ensure children get the best start in life.

Key objectives

The current system and the case for future reform will be assessed against four objectives: 

1. Maternal health
   To support the physical and mental wellbeing of women during pregnancy and after childbirth, ensuring sufficient time off with appropriate pay.
2. Economic growth through labour market participation
   To enable more parents—particularly mothers—to remain in work and progress their careers, thereby reducing the gender pay gap and the “motherhood penalty”.
3. Best start in life
   To provide parents with the time and resources needed to support their children’s early development and wellbeing.
4. Childcare flexibility
   To help parents make balanced childcare choices, promote co-parenting, and accommodate modern working patterns. 

The review will also include three general considerations: fairness and equality, cost implications, and broader social impacts. The call for evidence invites views on whether the current system meets the stated objectives and whether additional goals should be considered. It also seeks input on potential improvements that could be delivered with minimal cost to businesses and the public purse. 

Legislative context

Some changes are already in motion through the Employment Rights Bill, which will:

• Make paternity and unpaid parental leave available from day one of employment
• Allow paternity leave and pay to be taken after shared parental leave
• Enhance dismissal protections for pregnant women and new mothers; and
• Strengthen the right to request flexible working .

Next steps

Once the government has the information it needs, it will develop a roadmap for reform. This will outline how the UK can transition to a parental leave and pay system that is more equitable, effective, and aligned with the needs of today’s families and employers.

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