A year for action – PM '"conducting a review into parental leave" 🚀
How will the new Labour government support working parents? This was the question poised by the MP, Luke Charters, who is shortly to take up paternity leave for the birth of his second child.
“We are conducting a review into parental leave, because you cannot grow the economy if parents have to choose between work and their children.” was the response from Keir Starmer.
This signals a crucial step toward addressing the evolving needs of working families - but will it lead to real change? LinkedIn.com
Current Government Provisions
As it stands, UK parental leave policies offer:
Maternity Leave: Employed mothers are entitled to up to 52 weeks of maternity leave, comprising 26 weeks of ordinary leave and an additional 26 weeks. The initial six weeks are paid at 90% of the mother's average weekly earnings, followed by 33 weeks at a statutory rate. NHS.UK
Paternity Leave: Eligible fathers or partners can take up to two weeks of paternity leave, paid at a statutory rate. news.sky.com
Shared Parental Leave: Parents can share up to 50 weeks of leave and 37 weeks of pay, allowing flexibility in caregiving responsibilities during the child's first year.
Expansion of Free Childcare: By September 2025, eligible working parents will have access to 30 hours of government-funded childcare per week for children aged nine months to school age. educationhub.blog.gov.uk
Neonatal Care Leave and Pay: New legislation grants parents up to 12 weeks of paid leave if their babies require neonatal care, acknowledging the unique challenges faced during such times.
capitallaw.co.uk
Challenges and Gaps Identified by WOMBA
At WOMBA, we recognize several challenges within the current framework:
Limited Paternity Leave: The UK's provision of two weeks of paternity leave is among the least generous in Europe, which can discourage fathers from taking time off and perpetuates traditional gender roles in caregiving. politicshome.com
Financial Constraints: The statutory rates for both maternity and paternity leave may not provide sufficient financial support, leading some parents to return to work earlier than desired.
Cultural Barriers: There remains a societal stigma in some workplaces against taking extended parental leave, particularly for fathers, which can deter employees from utilizing their full entitlements. forbes.com
You can view more insights in our research white paper ‘How Boards can drive equal opportunities for working parents: Insights into the different challenges of becoming a working mum and working dad’, and the key 12 recommendations we make for Boards, People Leads & Government.
Economic Benefits of Enhanced Paternity Leave
Recent research by the Joseph Rowntree Foundation indicates that expanding statutory paternity leave to six weeks at 90% of pay could deliver £2.6 billion of long-term growth to the UK economy. This boost is attributed to increased workforce participation and enhanced productivity resulting from better-supported families. politicshome.com
Progressive Organisational Practices
With working parents making up around 32% of the UK workforce, organisations have a vital role to play in shaping a more inclusive, supportive workplace. Research from the Joseph Rowntree Foundation even suggests that improving paternity leave alone could add £2.6 billion to the UK economy. Forward-thinking companies like Deloitte and John Lewis are already leading the way with equal parental leave policies. BITC.org.uk
Progressive organisations are looking to equalise parental leave offering 6months full paid leave for mums and dads, setting new standards by implementing equal parental leave policies.
Deloitte: Starting next year, Deloitte will offer 26 weeks of fully paid parental leave to all employees, regardless of gender, aiming to promote gender equality and support career progression for women.
John Lewis and Goldman Sachs: These companies have also adopted equal parental leave policies, recognizing the importance of supporting all parents equally.
The Business Case for Enhanced Parental Leave
Supporting working parents is not just a moral imperative, but also makes sound business sense:
Talent Retention & Loyalty: Generous parental leave policies can enhance employee satisfaction and loyalty, reducing turnover rates, as work life balance is the top motivator for employees in the UK
Attraction & Reputation: By enabling both parents to share caregiving responsibilities, organisations can support women's career advancement, leading to more diverse leadership teams.
Over 60% of organisations are offering enhanced parental leave but only 74 organisations offer it for both mums and dads - this shows an example of the difference between the market standard and market leaders.Productivity: Employees that feel happy are 12% more productive!
Profitability: Encouraging both parents to participate in the workforce supports economic growth by maximizing the talent pool. Companies in the top quartile for diversity in executive teams are 25% more likely to have increased profitability over those in the 4th quartile.
All of this underscores the significant role that working parents play in the UK's labor market. As the government embarks on its review of parental leave, there is a pivotal opportunity to address existing gaps and align policies with the needs of modern families. Implementing supportive parental leave policies is not only a matter of social responsibility but also a strategic business decision.
By accommodating the needs of this substantial portion of the workforce, organisations can enhance employee satisfaction, reduce turnover, and foster a more inclusive and productive work environment. Those that proactively adopt progressive parental leave practices will not only support their employees but also position themselves for long-term success.