The UK government has launched a comprehensive review of the parental leave and pay system in what ministers describe as a “once-in-a-generation” opportunity to support working families and help children get the best start in life.
Announced on 1 July as part of the Plan to Make Work Pay, the review will examine maternity, paternity and shared parental leave, with the aim of making entitlements fairer, simpler and more accessible for parents and employers alike.
Ministers say the current system is not working, with one in three fathers unable to afford paternity leave and take-up of shared parental leave remaining extremely low. The review will gather views from parents, employers and experts, and produce a roadmap for possible reforms.
“Supporting working parents isn’t just the right thing to do; it’s vital for our economy,” said Deputy Prime Minister Angela Rayner. “Through our Plan to Make Work Pay, we’re already improving the parental leave system with new Day One rights. This ambitious review will leave no stone unturned as we deliver for working families.”
Business Secretary Jonathan Reynolds described the arrival of a child as “a life-changing moment” and said the government wanted a system that “works for modern families and businesses”.
Growing Momentum for Change
The announcement follows a growing wave of pressure from campaign groups, employers and HR bodies, who say the existing system is outdated, financially inadequate and contributes to gender inequality in the workplace.
“The current system isn’t working, and there needs to be a holistic and thorough review from government that supports better, fairer and fuller employment for working parents,” said Claire McCartney, policy and practice manager at the Chartered Institute of Personnel and Development.
The body, which gave evidence to the Women and Equalities Committee, supports calls for increased paternity leave and pay, and simplification of the complex shared parental leave scheme. The committee recommended offering up to six weeks of paternity leave at or near full pay, phased in over time.
“The government review should consider lessons learnt from successful international approaches, and the steps it can take to reduce wider cultural and societal barriers to fathers taking more leave,” said McCartney.
“We encourage the government to consult thoroughly with employers, representative bodies and working parents throughout this review to ensure the recommendations are practical, workable and likely to bring about real change.”
Employers and Charities Back Review
Jane van Zyl, CEO of Working Families, a UK charity supporting families and carers, welcomed the terms of reference and said the government appeared to be listening.
“It’s encouraging that several of the key asks in our open letter, signed by 22 leading organisations and 16 academics, have been taken on board, particularly the commitment to deliver a comprehensive review, which considers statutory pay levels and will consult the public,” van Zyl said.
“Backing up the government’s findings, our own research shows the current system is falling short, with one in five fathers having no access to parental leave at all, and many others unable to take what they’re entitled to due to financial pressures. This review is a vital opportunity to build a parental leave system that supports the needs of families today.”
The head charity Pregnant Then Screwed, Rachel Grocott, said it was “great to see this long overdue review of the parental leave system. It’s time for the voices of mums, dads, parents and carers everywhere to be heard.”
She said that, currently, “[a]fter six weeks mothers are forced to survive maternity leave on 44% less than the National Minimum Wage, and dads are forced to suck up the same benefits for their two weeks. Yet we know improving parental leave helps children get the best start in life, as well as being better for parents’ heath and equality at home, and closing gender pay and participation gaps in the workplace too.”
Grocott added that “[i]nvesting in parental leave will pay back above and beyond, to the bottom line and to society: it really is a no-brainer.”
Campaigners Demand Urgent Reform
The government review comes just weeks after a national protest organised by campaign group Dad Shift, whose DadStrike on 11 June called attention to the UK’s limited and poorly paid paternity leave. The event generated widespread media coverage and prompted meetings with ministers.
“The government’s review of parental leave is the best chance in a generation to improve the system and make sure it actually works for working families,” said George Gabriel, co-founder of The Dad Shift, which organised the DadStrike.
“When the last Labour government introduced paternity leave it was groundbreaking. But that offer, unchanged since, is now the least generous in Europe. Our broken parental leave has been overlooked for years, and finally sorting it out would be good not only for parents and children but for businesses too.”
Gabriel added that “tens of thousands of mums, dads and future parents that make up our campaign are delighted the Government is delivering its promised review, and ambitious for the change to come”.
The review builds on commitments in the Employment Rights Bill, which will remove the 26-week qualifying period for paternity leave, making it a Day One right.