Parental leave and pay for new parents to be reviewed by ministers

Parental leave and pay for new parents to be reviewed by ministers

The government has announced a “landmark” review to examine the amount of time off and pay that new parents can receive after the birth of a child. This review aims to modernize the current system of paternity, maternity, and shared parental leave, which has been described as overlooked for many years by campaigners. The Dad Shift campaign group sees this review as an opportunity to significantly improve the system to better support working families.

In a recent report, a committee of MPs criticized the UK’s parental leave system as one of the worst in the developed world, highlighting fundamental flaws. Shadow Business Secretary Andrew Griffith expressed concerns that additional costs imposed on employers could result in job losses. The Women and Equalities Committee’s report from June emphasized the need for bold action to address these flaws and highlighted the necessity of significant investment to bring about any changes.

Business Secretary Jonathan Reynolds acknowledged that both businesses and parents have been urging for a closer examination of the parental leave system. He emphasized that the UK has not thoroughly reviewed parental leave for several decades and encouraged those with strong opinions on the matter to participate in the process. The shadow business secretary reiterated the importance of having a job in the first place and emphasized the significance of stability in employment regardless of the length of family leave available.

The government’s review will concentrate on statutory leave, which is the minimum leave mandated by law and funded by the government. Statutory maternity leave enables most new mothers and birthing parents to take up to 52 weeks off work. Statutory maternity pay covers up to 39 weeks, providing 90% of a person’s average weekly earnings for the first six weeks, followed by a fixed amount for the remaining weeks. Similarly, statutory paternity leave allows new fathers and second parents to take up to two weeks off work, with a fixed pay rate. The government’s acknowledgment of the low take-up of shared parental leave and the financial barriers preventing some fathers from taking paternity leave has prompted the need for a comprehensive review of the entire parental leave system

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