Flexible Working Policies ‘Could Boost UK Economy by £10 Billion’

Implementing flexible working arrangements for parents could inject over £10 billion into the UK economy and facilitate the return of approximately 440,000 parents to the workforce, new research suggests.

A study by Vodafone indicates that more than half (52%) of parents experience burnout within a month of resuming work after family-related leave. But flexible working options have been shown to alleviate the problem, with 78% of parents reporting an improved work-life balance and 68% noting enhanced mental wellbeing when such policies are in place. ​

Vodafone, in collaboration with the online parenting community Peanut, is advocating for UK employers to adopt inclusive policies that support parents returning to work. Their initiatives include offering employees the option to work 80% of their hours for 100% of their pay, benefits and holiday during the first six months back at work. The telecoms firm also provides up to five days of paid emergency care leave for parents and carers needing unplanned time off to care for dependents. ​

Supporting Working Parents

Nicki Lyons, chief corporate affairs and sustainability officer at Vodafone UK, said businesses had a responsibility to support parents returning to work. She said Vodafone’s 80/20 policy allowed parents to work reduced hours for full pay, helping employees thrive both at work and home. ​

“Better productivity, improved time management, increased ability to multitask – our study shows just some of the skills working parents bring to an organisation,” she said.

The research also indicates that companies benefit from offering flexible working arrangements. Parents juggling childcare and work responsibilities develop transferable skills such as multitasking (43%), time management (36%) and patience (36%). Furthermore, 50% of parents felt that flexible working policies enhanced their productivity at work. ​

Despite these advantages, a “parent penalty” persists, with 45% of parents refraining from applying for new roles due to a lack of flexible working options, and 35% finding it challenging to progress in their careers while balancing work and caregiving duties. ​

On-site Facilities for Working Parents

Other companies are also recognising the importance of supporting working parents. Deloitte, for example, has announced plans to offer equal parental leave, allowing new fathers to take 26 weeks of fully paid leave, the same as new mothers. And businesses like Cisco, Goldman Sachs and Meta provide on-site nurseries and emergency backup care to assist working parents. ​

UNICEF advocates for family-friendly policies, saying that investing in such measures is beneficial for families, businesses and the economy. The UN agency urges governments and businesses to redesign workplaces to enable parents to provide their children with the best start in life while boosting productivity and promoting gender equality. ​

The report’s findings are based on polling conducted by OnePoll, which surveyed 1,000 UK parents of children aged five and under who took parental leave for over three months. The research took place between 17 and 24 February 2025.

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