MPs have warned the government that its review of parental leave must address the existing system’s ‘fundamental failings’, after it failed to commit to better-paid paternity leave during this parliament.
The Women and Equalities Committee said the review of the UK’s “broken” parental leave system was a “watershed moment,” and that tinkering around the edges “will let down” families.
The government has now formally responded to the WEC’s report, Equality at work: Paternity and shared parental leave, published in June. The report concluded that the UK has “one of the worst leave offers in the developed world for fathers and other parents”, adding that a maximum of 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leave is “completely out of step with how most couples want to share their parenting responsibilities” and “entrenches outdated gender stereotypes about caring”.
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In its response, the government acknowledged that the parental leave system needed improvement, and that the Employment Rights Bill would make paternity and unpaid parental leave “day one” rights from April 2026.
It said: “However, the government recognises that more can be done. In the Plan to Make Work Pay the government committed to a review of the parental leave system. This review launched on 1 July and will explore how the system can better support working families and reflect the realities of modern work and childcare, while still balancing the needs of businesses, and the exchequer.
“The review presents a much-needed opportunity to consider our approach to the system of parental leave and pay. All current and upcoming parental leave and pay entitlements will be in scope.”
It added that the review’s terms of reference include objectives to improve women’s labour market outcomes and to reduce the “motherhood penalty” and the gender pay gap. The review will last 18 months, and conclude with a set of findings and a roadmap, including next steps for taking any potential action.
The WEC expressed disappointment that the government’s response to its report omitted any definite commitment to longer, better-paid paternity during this Parliament. The report detailed a litany of shortcomings, including “damaging” low statutory pay across the board, inadequate leave periods for fathers, the exclusion of many working parents and guardians, as well as design flaws and unnecessary complexity in the shared parental leave scheme.
Deeply unfair
Lack of any statutory provision for self-employed fathers was “deeply unfair”, said the report, which recommended ministers examine approaches taken overseas, including the German “partnership bonus” and Portugal’s “sharing bonus”, which provide additional paid leave to couples in which both parents take a substantial portion of leave while the other returns to paid work.
In its response the government said: “The government recognises the recommendations in relation to self-employed parents… Fairness and equality will be, among others, a cross-cutting consideration of the review, including the consideration of building a fair system between parents of different employment statuses.”
It added: “The review will expand our existing evidence base to understand what is and what is not working well for families and employers, and consider opportunities for simplifying the system. The review represents an opportunity to reset our approach to parental leave and pay and what we want the system to achieve; a consideration of shared parental leave will be key to this. This will include looking at international models, such as those highlighted by the committee, and drawing on stakeholder expertise to form recommendations and a roadmap of any proposed reforms.”
Watershed moment
WEC chair and Labour MP Sarah Owen said: “While the Women and Equalities Committee welcomes the government’s announced review of the UK’s parental leave system just weeks after our published report – as well as ministers’ commitment to engage during the process – this must be a watershed moment for working families, which leads to far-reaching improvements.
“WEC’s report warned tinkering around the edges of a broken system will let down working parents. As the government pursues its economic growth agenda, the UK cannot afford to continue with a parental leave system which has fallen far behind most comparable countries and has one of the worst statutory leave offers for fathers and other parents in the developed world.
“It is disappointing there is no definite commitment in the government’s response to longer, better-paid paternity leave during this Parliament, as change is much needed and long overdue. As our report showed, an increasing number of larger businesses are implementing gender equal parental leave, and some who have been doing this for years are convinced of the business benefits, through employee engagement, retention, and lower recruitment costs.”
Owen added that the government’s review must address the “fundamental failings” in the existing system, and act on the strong evidence of the economic and societal benefits in the medium and longer term.
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