The current system of parental leave in the UK has ‘fundamental failings’, according to a new report from the Women and Equalities Committee.
The committee asked ministers to commit to “meaningful” reform after the government’s promised review of the system, including changes to pay, leave and the way parental policies operate.
The WEC claims that parents will be “let down by a review that leads only to tinkering around the edges of the system”.
Among the report’s claims are that statutory parental pay of £187.18 per week is completely out of kilter with the cost of living, has not kept pace with inflation, and is far below comparable rates in other countries.
It also urges the government to raise paternity pay to the level of maternity pay in the first six weeks (or 90% of average earnings) during this parliament.
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Increases to statutory parental pay could be introduced in a phased manner, it adds, ultimately bringing rates for all working parents to “a very substantial portion” (80% or more) of average earnings or the real living wage.
One of the key points made by the report is the “stark gendered disparity” between allowances for mothers and fathers.
The report calls for the government to legislate for a day-one right to paid paternity leave, potentially through the Employment Rights Bill, or at least commit to consulting with employers on this right.
It reflects that the UK has “one of the worst leave offers in the developed world for fathers and other parents”, adding that the maximum two weeks’ paternity leave is “completely out of step with how most couples want to share their parenting responsibilities” and “entrenches outdated gender stereotypes about caring”.
The upcoming review should consider ways to address cultural and societal barriers to fathers taking more leave, it adds.
Shared parental leave (SPL) is described as “extremely difficult for most parents and their employers to understand”, and the committee wants the review to examine and address its complex eligibility rules and simplify elements such as demanding employment status or a certain time in service.
“The objective for reforms of SPL must be to widen access to as broad a range of working parents as possible, including the self-employed and those on lower incomes,” it advises. This should include single-parent families and parents of multiple births.
The review should look to overseas systems, such as Germany’s “partnership bonus” or Portugal’s “sharing bonus” for inspiration. These provide additional paid leave to couples in which both parents take a substantial portion of leave while the other returns to work.
Sarah Owen, Labour MP and chair of the WEC, said: “It’s clear from the evidence in our committee’s report that the UK’s parental leave system is in urgent need of an overhaul to fit with the reality of working parents’ lives. This must start with longer and better-paid paternity leave.
“It’s essential the government’s proposed review addresses the system’s fundamental failings, including low statutory pay, inadequate leave periods for fathers and others, exclusion of many working parents and guardians, plus design flaws and unnecessary complexity in the shared parental leave scheme.
“The UK’s parental leave system has fallen far behind most comparable countries, and we now have one of the worst statutory leave offers for fathers and other parents in the developed world.
“Countries which provide a substantial period of well-paid leave for all parents have on average a four-percentage point smaller gender pay gap than those that allow less than six weeks.”
Ultimately, ministers should work to a more “gender equal parental leave system”, she added.
“Tinkering around the edges of a broken system will let down working parents. While much-needed substantial change to our paid parental leave system will require considerable financial investment, this would be outweighed by wider societal and economic benefits.”
Claire McCartney, policy and practice manager at the CIPD, who gave evidence to the committee, said: “We welcome this report from the WEC and its calls for the government to ensure a meaningful review of the UK’s parental leave system, that fits the reality of working parents’ lives. The system in its current form isn’t working, and there needs to be a holistic and thorough review from government, that supports better, fairer and fuller employment.
“In particular, we’re pleased to see the WEC’s recommendations to increase paternity leave up to six weeks at or near the full rate of pay, through a phased approach, and to simplify the currently very complicated shared parental leave system. The CIPD has called for statutory paternity leave and pay to be extended, to help balance caring responsibilities, provide much-needed financial support to working parents and assist with retention.
“It’s also important that the government review considers lessons learnt from successful international approaches and the steps it can take to reduce wider cultural and societal barriers to fathers taking more leave.”
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